{"id":126974,"date":"2020-12-05T16:08:43","date_gmt":"2020-12-05T13:08:43","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios\/"},"modified":"2020-12-05T16:08:43","modified_gmt":"2020-12-05T13:08:43","slug":"bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios\/","title":{"rendered":"# Bitcoin traders nervous after $19.5K rejection \u2014 Here are the bear, bull scenarios"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f8f3fd4151\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f8f3fd4151\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios\/#Bitcoin_rally_keeps_stalling_at_19500\" >Bitcoin rally keeps stalling at $19,500<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios\/#The_bullish_case_for_Bitcoin_in_the_near_term\" >The bullish case for Bitcoin in the near term<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios\/#The_short-term_bearish_case\" >The short-term bearish case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios\/#One_variable_that_can_spark_a_new_BTC_rally\" >One variable that can spark a new BTC rally<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin traders nervous after $19.5K rejection \u2014 Here are the bear, bull scenarios  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The price of Bitcoin (BTC) was rejected by the $19,500 resistance level yet again on Dec. 4, with traders becoming increasingly uncertain about what&#8217;s next for BTC\/USD. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_rally_keeps_stalling_at_19500\"><\/span>Bitcoin rally keeps stalling at $19,500<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Some foresee the dominant cryptocurrency undergoing a consolidation phase or another minor correction in the near term, particularly as the U.S. dollar is showing signs of a possible recovery.<\/p>\n<p>Others, however, expect the crucial $18,500 support level to hold, which would likely set up BTC to retest the key $20,000 level and a new all-time high in the near future.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/ec11c250-d941-4257-ad00-0b237754bfb3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin weekly chart (Binance). Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>In the short term, traders <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly foresee two important support and resistance levels for Bitcoin. First, the $18,500 area is critical to ensure that the bullish market structure of BTC holds. Second, The $19,500 level is a massive resistance level for BTC. If BTC surpasses $19,500, traders expect a new run-up toward the all-time high that&#8217;s currently just under $20,000.<\/p>\n<p>Meanwhile, Bitcoin is becoming more difficult to trade because of the volatility at the $19,500 resistance level. BTC saw a severe sell-off every time this area was tested in the past week. <\/p>\n<p>A pseudonymous trader known as \u201cCryptoGainz\u201d believes that the ideal entry point for Bitcoin traders is now above the $19,500 resistance level. However, this may not be the case for two reasons: it puts traders at risk of a steep sell-off at the record high once again as $20,000 remains a high-risk sell wall for the bulls. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoGainz1\/status\/1334811241353781250\">said<\/a>:<\/p>\n<blockquote><p>\u201cWhat\u2019s annoying about this price action for me is that if my bids don\u2019t get hit I\u2019m forced to long the breakout, which at this point puts me around 19.7k or higher Meaning my entry isn\u2019t safe from a pullback unless there\u2019s an epic (read: 10%+) impulse move from that level.\u201d<\/p><\/blockquote>\n<p>Whales selling below the all-time high is the one key reason Bitcoin is experiencing massive volatility each time it nears $19,500. <\/p>\n<p>CryptoQuant CEO Ki Young Ju told Cointelegraph explained that whale inflows hit an eight-month high when BTC got close to $20,000. The combination of whales and miners selling heavily puts BTC at risk of a correction, Ju noted.<\/p>\n<p>In the near term, this could mean that Bitcoin could face weeks of sideways consolidation or a deeper correction, according to Ki. Moreover, he added that exchange reserves are not declining as they did throughout mid-2020. It shows that whales might be leaving BTC on exchanges to sell if the price of Bitcoin rises. He explained:<\/p>\n<blockquote><p>\u201cIf you look at all exchanges inflow mean(144-block MA), it hit over 2 BTC a few hours ago. We hit 2.5 BTC when the price was t<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ing $20k. It was the eight-month high since the March great sell-off. Looking at all exchanges outflow mean(72h MA), whales are no longer withdrawing from exchanges. They keep BTC on exchanges to make them available to sell I think. Looking at the Miners&#8217; Position Index, miners are selling BTC pretty heavily.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"The_bullish_case_for_Bitcoin_in_the_near_term\"><\/span>The bullish case for Bitcoin in the near term<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If Bitcoin rises above the heavily-shorted $19,500 resistance level, buyers have a chance to regain control over the market. <\/p>\n<p>A pseudonymous trader known as \u201cCryptoCapo\u201d <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoCapo_\/status\/1334830505464918016\">said<\/a> that \u201cbears don&#8217;t want to see price above $19,500,\u201d while bulls do not want the price to go below $18,500.<\/p>\n<p>Nevertheless, if the bulls prevail here, the $20,000 level would be the next \u2014 and perhaps the more psychologically important \u2014 area to defend for the bears, in the near term. Other traders, like CryptoGainz, similarly <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoGainz1\/status\/1334788103156928514\">said<\/a> that $19,650 is the level that may trigger a new breakout for Bitcoin in the near future.<\/p>\n<p>Meanwhile, MicroStrategy, the $3 billion business intelligence conglomerate, has just bought an additional $50 million in Bitcoin at the current price level, which yet another optimistic factor for Bitcoin.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/nwZcM9zAXZ\">https:\/\/t.co\/nwZcM9zAXZ<\/a><\/p>\n<p>\u2014 Michael Saylor (@michael_saylor) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/michael_saylor\/status\/1334990791496884224?ref_src=twsrc%5Etfw\">December 4, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The public company first announced its purchase of $250 million worth of BTC on Aug. 11, as Cointelegraph reported. In September, the firm bought another $175 million worth of BTC, bringing its BTC holdings to about 38,000 BTC. MicroStrategy doubling down on its purchase shows that the firm believes $19,000 could be a launchpad for Bitcoin\u2019s next rally.<\/p>\n<p>This <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> also comes as Grayscale has already added thousands of Bitcoin to its holdings in December alone. As Cointelegraph reported earlier this week, the Grayscale Bitcoin Trust bought 55,000 BTC in November, or double the amount of the total BTC mined that month.\u00a0<\/p>\n<p>Therefore, it remains to be seen if this institutional buying could offset the bearish selling by whales and miners in the month ahead.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_short-term_bearish_case\"><\/span>The short-term bearish case <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Technically, the bearish scenario for Bitcoin in the upcoming days revolves around the $18,500 support level. If BTC loses the support and falls below $18,500, technical analysts say that a larger drop could occur. Below $18,500, the next major macro support area is the $16,000 to $16,500 range, which BTC tested on Nov. 26.<\/p>\n<p>Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, noted that Bitcoin falling under $18,500 would likely mean retesting the $16,000 support area. If BTC keeps getting rejected by the $19,150 and $19,400 resistance levels, the probability of a drop will continue to rise. <\/p>\n<p>Van de Poppe <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1335153140962832385\">explained<\/a>:<\/p>\n<blockquote><p>\u201cAnd as $19,400 and $19,150 rejected, the range low was tested at the $18,500 area, tweeted yesterday. All fine, range-bound construction further. Breaking $19,400 = new ATH. Losing $18,500 = likely $16K tests.\u201d<\/p><\/blockquote>\n<p>As a result, the futures market has been showing uncertainty from traders in the past several days. Data from CryptoQuant show that Bitcoin futures traders have been using lower leverage as of late. This indicates that traders anticipate large price swings and potentially steep sell-offs to occur. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/17e63b41-60c4-4cd4-aebd-dbfecbcb811d.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Binance estimated leverage ratio. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>Analysts at CryptoQuant <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1334400517024301057\/photo\/1\">found<\/a> that open interest\u00a0on Binance Futures is rising while the estimated leverage ratio is declining, which suggests that traders are becoming increasingly cautious and uncertain about Bitcoin&#8217;s next move.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"One_variable_that_can_spark_a_new_BTC_rally\"><\/span>One variable that can spark a new BTC rally<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The calls for a Bitcoin correction have been increasing, even from several permabulls. Raoul Pal, the CEO of Real Vision Group, for example, pointed out that technicals suggest BTC is at risk of seeing a correction. The DeMark system shows the daily chart of Bitcoin is on track for a record 13 consecutive positive candles.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin is potentially facing some serious technical headways&#8230; the daily DeMark is showing a cluster on 2 13&#8217;s and a 9 and tomorrow might put in ANOTHER 13! <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/TNPpLfR2nH\">pic.twitter.com\/TNPpLfR2nH<\/a><\/p>\n<p>\u2014 Raoul Pal (@RaoulGMI) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/RaoulGMI\/status\/1334819565302394881?ref_src=twsrc%5Etfw\">December 4, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>But, one variable that may allow Bitcoin to continue grinding upward is the Relative Strength Index (RSI) on the yearly chart. Currently, the RSI of Bitcoin is hovering at 75, which means that it is not yet in overbought territory. <\/p>\n<p>An asset is considered to be extremely bought when the RSI rises above 90. Considering the general momentum of BTC, alongside increasing institutional interest, BTC bulls still have a good chance of breaking through the key $19,500 and $20,000 resistances.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-traders-nervous-after-19-5k-rejection-here-are-the-bear-bull-scenarios\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin traders nervous after $19.5K rejection \u2014 Here are the bear, bull scenarios &#8221; The price of Bitcoin (BTC) was rejected by the $19,500 resistance level yet again on Dec. 4, with traders becoming increasingly uncertain about what&#8217;s next for BTC\/USD. Bitcoin rally keeps stalling at $19,500 Some foresee the dominant cryptocurrency undergoing a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":126975,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/9b76f2cc-b408-4906-b027-c9b7d35cae4a.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,74937,74939,75164],"class_list":["post-126974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-price","tag-market-analysis","tag-price-analysis"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/126974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=126974"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/126974\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/126975"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=126974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=126974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=126974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}