The cost to long Bitcoin is rising; here’s what that could mean 🚨 This article is 4 years old...
The cost to long Bitcoin is rising; here’s what that could mean
2 min read
Updated: Nov. 21, 2019 at 2:04 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin has been stuck in a rut in the time following its movement down towards $8,000, as it has failed to garner any decisive momentum and has continued consolidating around its near-term support level at $8,000.
Bitcoin’s bulls have remained stubborn in spite of the crypto’s clear bearishness in recent times, as margin traders have continued to stack long positions at BTC’s current price. Assuming that history rhymes, however, this may actually prove to be a bearish sign for the embattled cryptocurrency.
Bitcoin trades sideways as bulls defend key support level
At the time of writing, Bitcoin is trading down just over 2 percent at its current price of $8,020, which marks a notable retrace from its daily highs of over $8,200 that was set when bulls made a futile attempt to spark an upward movement.
The rejection that resulted from this movement instantly sent BTC reeling down to the support level at $8,000 that has held strong for the past couple of days.
In the near-term, analysts are eyeing a move down to $7,700, which may prove to be an ideal long entry position.
UB, a popular cryptocurrency analyst on Twitter, mused the possibility that a move down to $7,700 could be imminent, telling his nearly 25,000 followers that BTC’s recent price action is strikingly similar to that seen throughout the earlier parts of this month. He explained while referencing the charts below:
“$BTC – That was a disappointing h4 close. Similar PA has been repeating since early November. To further confirm this argument, I’d like to see the EQ flip into Resistance. My next area of interest for a long is ~$7.7k,”
Are growing long positions spelling trouble for BTC?
One interesting factor that traders may want to watch closely is the rising cost to long Bitcoin on margin trading platforms, which comes as BTC bulls continue to stack long positions in spite of its recent bearish price action.
Big Chonis, another popular analyst, spoke about this in a recent tweet, noting that BTC has historically dumped following periods of high funding rates for long positions, meaning that another downwards movement could be inbound. He explained:
“Funding rate rising again today as $BTC holds just above $8K…it is costing more to hold a Leveraged Long trade as this market is overweight LONG… recently when funding goes up #bitcoin dumps.”
The next couple of days may shine a light on whether or not this trend will replicate itself in the near-term, or if bulls will step up to the plate and send BTC surging higher.
Bitcoin Market Data
At the time of press 2:04 am UTC on Nov. 21, 2019, Bitcoin is ranked #1 by market cap and the price is down 2.49% over the past 24 hours. Bitcoin has a market capitalization of $144.71 billion with a 24-hour trading volume of $20.66 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 2:04 am UTC on Nov. 21, 2019, the total crypto market is valued at at $219.92 billion with a 24-hour volume of $69.08 billion. Bitcoin dominance is currently at 65.81%. Learn more about the crypto market ›
Latest Bitcoin Stories
You might also enjoy...
Latest Alpha Market Report
In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
