Bitcoin has once again found itself stuck within a boring period of sideways trading as it finds stability around $7,500. This sideways trading has come about concurrently with BTC hovering just above its 89-day EMA level, which may provide valuable insight into which direction it will trend in the mid-term.
Analysts are favoring a bearish movement at the moment, which stems from the amount of hidden sell orders that have been suppressing any BTC rally, as well as the frequent rejections it has been experiencing at its key resistance levels.
Bitcoin Hovers Around $7,500 as Bulls and Bears Remain Deadlocked
At the time of writing, Bitcoin is trading down just under 1% at its current price of $7,535, which is around where it has been trading at for the past day.
Yesterday, however, Bitcoin did make multiple attempts to surge up towards its next key resistance level at $7,800, although buyers were unable to build enough buying pressure to send it surging past $7,600.
This lack of buying pressure has come about after BTC faced a firm and swift rejection at $7,800 earlier this week and may spell serious trouble for its near-term price action.
Cantering Clark, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he is currently bearish on Bitcoin for a variety of reasons, including the hidden “iceberg” orders that have suppressed all the bullish movements.
“Free time makes the mind wander, plenty of bullish narrative to go around. Heres what I see – Price unable to reclaim key level – Multiple rejections – A bunch of boredom induced narrative – Iceberg orders catching all the eager aggressors buying. I am short again,” he noted.
Free time makes the mind wander, plenty of bullish narrative to go around.
Heres what I see
– Price unable to reclaim key level
– Multiple rejections
– A bunch of boredom induced narrative
– Iceberg orders catching all the eager aggressors buyingI am short again. $BTC
— Cantering Clark (@CanteringClark) December 9, 2019
How BTC Responds to 89-Day EMA May Offer Insight into Next Mid-Term Trend
A key level that has historically given significant insight into Bitcoin’s mid-term trends is its response to its 89-Day EMA.
Teddy, another popular cryptocurrency analyst on Twitter, spoke about why he believes this is such an important level in a recent tweet, while referencing a chart showing that the response to this technical level determines its mid-term trend.
“#BITCOIN | $BTC: People ask me why I love the 89EMA — With it you would of predicted: – the entire breakdown from 6k down to 3k – the entire run from 5k to 14k — Historically it had huge implications on price, currently testing it as support – closing below, NOT NICE,” he noted.
https://twitter.com/teddycleps/status/1203945321887195136?s=20
How Bitcoin responds to this level may set the tone for where it heads into the first few months of 2020, but it is a strong possibility that it continues ranging sideways throughout the rest of 2019.
Featured image from Shutterstock.
