Bitcoin Futures Open Interest OKEx BitMex

Bitcoin [BTC] is trading in a tight range between $7475 and $7600 on the hourly chart. The price of Bitcoin [BTC] at 6: 15 hours UTC on 25th April 2019 is $7550.

Since there has been a lack of follow up to the bullish move on 23rd April, it is now beginning to threaten the Bart Simpsons‘ pattern, which could reverse the surge back to $7150 levels.

btcusd 1hour
BTC/USD 1-Hour Chart on Coinbase (TradingView)

There is considerable uncertainty among traders as the OI (Open Interest) on derivatives exchange dropping since Thursday. The IO on BitMEX dropped from around $533 million on 25th April to nearly $475 million. The funding rate has been positive at the taker rate of 0.003% indicating an end to the bearish bias in Bitcoin.

The volume across spot exchanges has also dropped since the move as the traders wait on the sidelines looking for a more decisive trade.

bitmex open interest
Bitcoin [BTC] BitMEX Open Interest (OI) (Source)

Tommy Theta (alias), a crypto trader tweeted,

I’m always wary of “bullish” closes outside a contested range, especially when they don’t follow up quickly and exceed expectation.

According to him, a break above swing highs at $7775 is essential for bullish continuation, until then his swing trade bias remains bearish.

On higher time frames, the daily chart is bullish as the price broke above the parallel range around $7250. The support to the bullish ascending triangle pattern in around the 200-Day Moving Average at $6850.

btcusd weekly chart
BTC/USD 1-Week Chart on Coinbase (TradingView)

On a weekly, scale the 50-period EMA (Exponential Moving Average) at $7825, along with parallel a range is acting as resistance. Crypto trader and analyst, Cantering Clark tweeted,

Contextually these levels that $BTC took are pretty important from an HTF R:R standpoint but I am not seeing the type of response I would want.

Either I am wrong about where the market thinks the line in the sand is or this is a sign of exhaustion through the high.

Do you think the price will make a break towards $8000 or exhaustion will lead to a drop? Please share your views with us.

Source: Coin GApe