Bitcoin Bulls May Long BTC, But the Cost Is Going Higher as BTC/USD Drops Below $7,500
- Presently, Bitcoin is resting at the $8,000 price level.
- Traders will need to watch the movement of Bitcoin over the next few days to see if momentum picks up.
Bitcoin has remained relatively stubborn in its price lately, following the downward movement towards $8,000, considering the lack of momentum.
The bullish Bitcoin supporters have remained faithful throughout the bearish times of cryptocurrency, and margin traders have accepted the current price while continuing to stack long positions. If history repeats itself, this decision may result in continued lack of movement.
Presently, Bitcoin is priced at $8,024.52, dropping by 2.21% in the last 24 hours. This is notable for the fact that it reached a daily high just over $8,200, which happened when bulls made a push for upward movement but unfortunately failed. The rejection resulted in BTC tumbling back down to the $8,000 support level, which has been holding strong.
Analysts believe that Bitcoin will see a move down to $7,700 next, which it could hold for the long term. One crypto analyst – UB – posted on Twitter about the price, stating that the move down to the aforementioned price could happen next, adding that the price action was a lot like what the asset had experienced earlier on in the month. The analyst explained:
“$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.”
He also included the following chart in his post:
The rising cost to long Bitcoin on these margin trading platforms may be worth watching, as it happens when the bulls for Bitcoin stack long positions when bearish price action occurs.
Another popular analyst named Big Chonis also tweeted about the movement, saying that high funding rates for long positions typically precede BTC’s dumps. This is a sign that another downward movement could be coming.
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… pic.twitter.com/5xnJSyuL7k
— Big Chonis⚔️Chonis Trading 🚀 (@BigChonis) November 20, 2019
Ultimately, the next few days may show if the trend will continue going forward, or if the Bitcoin bulls will come in and send the price of the asset up again.
The cost of Bitcoin has declined recently, and there are analysts that believe that the price isn’t done dropping yet. Is the activity of Bitcoin bulls enough to push it back up for the long term?