Bitcoin Price Down

A peculiar formation on the long timeline charts signals an indifferent market as bulls and bears struggle for ultimate control of the market. In what is a first for weekly BTC/USD charts, the candle price closed below the 50-day Moving Average (MA) before seeing the following week’s candle close above the line at $7,400, forming a rather rare set up for traders.

Are Bulls Ready to Take Over the Bears?

Looking at the weekly charts on BTC/USD, the price of Bitcoin looks lively following a green candle closing above the 50MA showing a possible market capture by the bulls. Despite the week starting Dec. 2 recording a red candle, bulls look keen to take on the bearish movement in the market.

According to crypto trader, Nunya Bizniz, the close above the 50MA is nothing but a bullish signal showing a bear trap forming as sellers’ pressure gets exhausted since the Oct. 25 bullish run.

However, the bullish case for the pioneer cryptocurrency is far from being a sure bet as another trader pointed out in reply to Nunyaz. According to the trader, the diverse indicators currently showing on charts using different parameters, is a call to show a possible move in any direction for BTC/USD.

Notwithstanding, the MA indicator is a past indicator and usually shows conflicting views in predicting future movements in price.

Bitcoin Futures Premiums on a Rise

More bullish signals are forming on the charts as the premium on BTC price (difference between BTC futures and spot price) is on a hike. Looking premiums on the March 2020 settlement contracts, the premium spike from $120 on Nov.29 to above $170 USD as at time of writing.

The spike in premiums signals a short term upward run in price as spot price catches up with the futures – a bullish case for the coin, according to Luke Martin.

The post A Rare Bullish Pattern on BTC/USD Charts Forms as Weekly Price Closes Above $7,400 appeared first on Coingape.

Source: Coin Gape