Yes, you read the name correctly, and it is contradictory. While Bitcoin (BTC) is reaching the milestone of $ 100,000, a transparent signal of force, the truth is that it is quite vulnerable to possible negative news.
It’s according to the “command bias ratio,” which shows that buyers have strangely dropped their firepower as a nearly six-figure value. The ratio measures the number of other people who want to sell or the side of the solicitation, to those of the acquisition or offer.
The three-day moving average of the 1% skew, which measures the ask-bid imbalance within 1% of the mid-price, is now elevated, approaching levels seen only three times since 2022, according to data tracked by cryptocurrency prime broker FalconX.
It is a sign that the bullish impulse that brought value to almost $ 100,000, to $ 68,000 of the US elections at the beginning of the month is not rebuilt through new purchase interests, leaving the dealers in a more dominant position. As such, a minor negative news can lead to a worth signaling.
“While we are close to $100,000, bias approaches are reaching grades only 3 times since 2022. While this threatens the rally in the medium term, he recommends that the fight breaking above the $100,000 point can be intense,” Falconx told the newsletter.
The increase in Bitcoin higher over the weekend because it culminated at $99,500 on Friday. In the beyond 3 days, the cryptocurrency’s dominance rate, its percentage of the overall crypto market capitalization, has declined sharply by 59% compared to 61. 5%. The decline indicates a turnover of the Bitcoin budget and in the cryptocurrencies of choice, which supports the price case.
In any case, a forward-looking correction or imaginable breakout above $100,000 can be violent, as the overall intensity or liquidity of the market has declined amid the value of the penalty despite a construction in trading volumes, according to Falconx.
Liquidity refers to the market’s ability to absorb giant trading orders with solid value. The recent drop in liquidity means that few giant orders can have a big effect on the ongoing market, potentially immediate securities engineering.
Omkar Godbolole is editor, in the main team of Coendesk Marketplaces founded in Mumbai, he has a master’s degree in finance and a member of the approved market technician (CMT). Omkar in the past worked at FXSTERET, writing currency markets and as a basic analyst in the currency and raw fabrics of brokerage houses founded by Mumbai. Omkar includes small amounts of bitcoin, ether, bittorrent, tron and point.
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