Bitcoin Retesting Resistance as Institutional Investors Take Profits & Reduce Holdings

Over the weekend, Bitcoin managed to recover the losses it suffered over the last week completely. From the low of $17,600 on Friday, on Sunday, the price of the digital asset went back to $19,500.

This strong rally is also reflected in the premium on futures, showing the market’s confidence in the price trend.

However, as per CME’s latest data, as of Dec. 12, institutional investors reduced their positions for risk control. While asset managers’ long positions fell from 626 to 544 and their short positions increased from 0 to 11, leveraged funds’ long positions declined from 4,509 to 4,365 along with their short positions from 9,375 to 9,354.

This reflects that institutional investors have taken off profits and reduced their holdings, as per Quandl.

At the time of writing, BTC/USD has been trading around $19,100 with a trading volume of $2.24 billion.

While people continue to hope for a deeper correction to sweep off even more of the BTC, the largest cryptocurrency is not giving the market a chance to do it.

As trader Credible Crypto noted, “Once a key area of resistance is broken, it typically acts as support.”

Last month, around Thanksgiving, Bitcoin went down to about $16,400, a drop of 16% from about $19,500. After going above $19,900, we had a dip last week of under 12% with no daily close below $17,100.

The trader expects bitcoin to do a repeat of it, retesting the $19,900 high from earlier this month to take a drop around $18,600 before we move on to rally off above $20,000.

“I think it’s the less likely scenario, but a sweep of the $20k ask liquidity before a dip back under to find the bid demand again would be a very Bitcoin thing to do. Would put us on pace for sustained ATHs in the 2nd half of Jan,” is another trader’s expected scenario.

For now, the bitcoin market is giving “encouraging signs” that says we can go higher.

As trader Jonny Moe notes, the Adam and Eve pattern we got on the low timeframe has broken to the upside; now the digital currency needs to fill out the ascending triangle to make a run for $20k by this upcoming weekend.

The market has turned bullish with the latest uptrend, and bulls are expected to be in charge as “the bears will want to wait for volume and momentum to fail prior to rushing in front of this freight train,” stated Hxro Labs, which called for the weekend’s rally.

But next year will be the most exciting when Bitcoin finally goes off above $20k and starts this bull rally in full effect.

And with institutions getting deep into Bitcoin, the moon targets have been getting higher and higher.

“Glad I bought Bitcoin. Next stop $50k. Wall of institutional money coming 2021. Buy below $20k,” said Robert Kiyosaki, the author of Rich Dad, Poor Dad.

According to Moe, “3500% > 1500% > 650% is roughly 40% of the prior move, and puts us right at $150,000.”

“Buckle up for a wild ~9 months folks,” he added.

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Author: AnTy

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