Trading Bitcoin: The Stalemate Continues

The Stalemate Continues

Not much has changed since yesterday. The bulls briefly took us up to $7.5k yesterday before being rejected down to $7.1k. Currently we are trading at roughly $7.3k. On the daily chart above, Bitcoin is on a red sequential 5 candle. Therefore, sequential theory is stating that price action is likely to be bearish – neutral for the remainder of the week. Furthermore, price is still traveling through the downward sloping price channel. Additionally, Bitcoin’s RSI is rebounding from a profoundly oversold level.

BitMEX Funding and Premium Index

Above is a showcase of the funding and premium index. The index has served as a reliable counter-indicator throughout previous market cycles. Currently, the index is calling for bullish price action. Being said, this index can sometimes remain overextended for long periods of time. As the old saying goes…”the market can remain irrational for longer than you can remain solvent”.

Conclusion

Overall, the market is in a boring state. Judging by google search trends and other sentiment data, overall retail interest in cryptocurrency is stagnate or decreasing since our top at $14k. One of two things need to happen in order for Bitcoin’s price to increase. Either more money needs to come into the cryptocurrency industry or Bitcoin dominance needs to increase from 70% to 80%. If neither of these things happen, there is really no fundamental reason for the price of Bitcoin to increase, at least at our current point.