Having briefly lost its main uptrend, BTC has recovered really well and is now potentially looking to retest the highs.
Open Interest has picked up, and Funding is also relatively positive at 0.015%.
This indicates that the amount of leverage has increased recently, with this leverage having a Long bias.
Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.
Technical analysis
- As mentioned above, the uptrend was broken on the 12-hour timeframe but was recovered on the Daily. This was important for price to see continued bullish momentum.
- The convergence of the uptrend line and the horizontal support of $40,900 was enough for price to bounce from.
- The main horizontal resistance above price is $44,000.
- The RSI has reset on the 12hr, 1D and 3D but remains overbought on the Weekly.
Cryptonary's take
Bitcoin has recovered its uptrend well and is now squeezing into the pinpoint - where the uptrend line meets the overhead horizontal resistance line. Price will likely see a more volatile breakout following the squeeze into the pinpoint.If the ETF applications are approved - it's looking like they'll be approved imminently, then BTC can break out higher and potentially test as high as $46k in the short term.
Therefore, we're looking to continue holding BTC, not Short it either.
However, crypto has moved extremely well over the past few months, and while we're still 4-5 months away from the halving, we may see more significant pullbacks in the new year as price is unlikely to be "up only" from here.
Therefore, we remain cautious about BTC for now. Yes, we're still holding and not looking to sell, but we're also not looking to add at current prices.
We will look to continue adding to our size on more meaningful pullbacks. For now, the area of interest is sub $40k. However, we will reassess if prices go higher in the very short term.
For BTC, with the market being 4-5 months out from a halving, buying significant pullbacks is usually a very good strategy.
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