It’s been a week now that Bitcoin is trading just above $9,000 level. At the time of writing, Bitcoin has been trading at $9,319 with 24 hours loss of 0.40%, as per Coincodex.
While BTC is stuck around this level, a few cryptos like Nano (13.17%), Quant Network (11.94%), Algorand (10.48%), VET (4.36%), Maker (3.89%), and BAT (3.49%) are in the green.
Trading volume is still extremely low at just $265.6 million. However, the 7-day average real trading volume for BTC spiked to a level not seen since June after the price jump.
BTC dominance has been on the decline for a month as well before going back above 70% with the 42% jump in the bitcoin price. Now, we are back just under 70%.
“Btc volume declining and dominance pulled back the to 0.618 on the dot, it would be an aweful shame if btc went on a rip while everyone's attention is on alts,” said analyst Benjamin Blunts.
Interestingly, the Fear and Greed Index have been the same throughout the week, pointing at Greed.
Price Steady in a Tight Range
There are a number of signs pointing towards a big move coming. For starters, the BTC price is now steady between the 100-day and 200-day moving average (MA), with the range getting tighter each passing day.
The Bitcoin price is still below the 100-day MA and bulls are looking to break above this for continuous positive price action. Having tested for about every day for the past week, the 200-day MA is looking like solid support. If BTC price does fall this support, temporary support is available around $8,600.
“Volatility or range compression often lead to explosive price moves. The distance among moving averages can be used to measure this,” said economist and trader Alex Kruger.
The last time the larger time frame MAs of BTC was this “coiled up” was on Nov. 13, 2018, when the price went from $6,300 to $5,500. However, this could remain the case “for a long time before a breakout.”
Volatility or range compression often lead to explosive price moves. The distance among moving averages can be used to measure this.
— Alex Krüger (@krugermacro) November 4, 2019
The Gap is Now Filled
The much talked about gap at CME has been finally filled. Though this may not mean anything in itself as Bitcoin has a history of filling the gap. However, some traders have turned bullish after this event.
Funding rate had a major increase overnight, meaning traders are going long & it certainly makes me cautious to be on the side w/ the majority
I still lean bullish w/ being over $9200 but certainly do not count out a strong move to the downside even w/ the gap being "filled"
— Josh Rager 📈 (@Josh_Rager) November 5, 2019
Gaps are basically made on CME when price closes and opens at different levels after a weekend, during which the market at CME remains closed.
In a sudden move, BTC/USD futures tanked below $8,500 before rebounding to $9,300 which drew the suspicions of manipulation.
“It's thinly traded yes. But man, I'm highly suspicious of the price action across all the exchanges of late, more so than usual,” said analyst Willy Woo.
BTC in Overbought Levels
The Global Strength Indicator of the leading cryptocurrency is nearing the 70 level that means BTC price is “likely to soon decline after becoming overheated,” reports Bloomberg.
This indicator is a measure of upward and downward movements of successive closing prices that says the flagship cryptocurrency is entering overbought levels following the October rally that saw the price climbing to $10,500 after China's President Xi Jinping promoted blockchain technology.
Now, it’s a watch and wait game to see the direction Bitcoin would move in next.