{"id":123738,"date":"2020-01-29T23:08:54","date_gmt":"2020-01-29T23:08:54","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=123738"},"modified":"2020-01-30T08:11:52","modified_gmt":"2020-01-30T08:11:52","slug":"bitcoin-price-just-rejected-9450-again","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bitcoin-price-just-rejected-9450-again\/","title":{"rendered":"Bitcoin just rejected $9450 again; now showing 4 factors of a potential pullback"},"content":{"rendered":"

The Bitcoin price just rejected $9,450 again on lower time frames and is vulnerable to a short-term pullback. It satisfies all four factors that previously led to deep corrections in the past.<\/p>\n

As explained by one cryptocurrency trader, the four factors that often trigger the Bitcoin price to decline substantially after an extended rally are:<\/p>\n

    \n
  1. FOMO buying<\/li>\n
  2. An early top<\/li>\n
  3. Weak daily support<\/li>\n
  4. Open interest above $1 billion<\/li>\n<\/ol>\n

    What's likely next for the Bitcoin price?<\/h2>\n

    Prior to the rejection at $9,450 across major exchanges like Binance and BitMEX, traders anticipated the Bitcoin price to demonstrate significant volatility<\/a>.<\/p>\n

    Jacob Canfield<\/a>, a prominent technical analyst, said that when open interest on BitMEX<\/a> surpasses $1 billion, a major sell-off typically occurs.<\/p>\n

    He said<\/a>:<\/p>\n

    “Open interest on bitcoin is currently at $943 million. Every time we\u2019ve hit $1 billion we\u2019ve seen a pretty big sell off. Let\u2019s see if this time will be different.”<\/p><\/blockquote>\n

    Open interest on a margin trading platform refers to the total amount of long and short contracts open in the market. It normally nears $1 billion after a large extended rally and when the market is uncertain about the short-term direction of the bitcoin price.<\/p>\n

    \"bitcoin
    Source: Salsa Tekila Twitter<\/a><\/figcaption><\/figure>\n

    The Bitcoin price is also up 48 percent in the past 42 days. Historically, BTC has tended to drop off<\/a> after a 40 to 50 percent rally to test lower supports.<\/p>\n

    Traders have emphasized that a CME gap for Bitcoin exists at $8,800.<\/a> When a CME gap appears, the market tries to close the gap by moving towards that direction.<\/p>\n

    The area where the CME gap exists also remains a region of high trading activity. Following such an intense rally, a pullback to the high-$8,000 level is being targeted<\/a> by many traders.<\/p>\n

    There are variables<\/h2>\n

    The $9,400 to $9,500 range has acted as a heavy resistance area for Bitcoin since October 2019. But, three months ago, the Bitcoin price surged past the $9,400 resistance level in a single day wick to achieve $10,600. The strong upside movement obliterated order books and found a local top in a high area.<\/p>\n

    In the first half of 2020, especially with the block reward halving<\/a> scheduled to occur in May, the Bitcoin price is generally anticipated to see a higher level of volatility than in 2019.<\/p>\n

    Simply put, Bitcoin could see more intense volatility than last year as a major event that affects the supply of BTC and as such its scarcity is set to happen. In the short-term, traders foresee a minor pullback to occur first to alleviate pressure on the market.<\/p>\n

    \n

    Going as planned so far but still nothing to write home about.<\/p>\n

    > Sells getting eaten up
    > A close above $9,400 and I think $9,600 will come
    > Not worth being too bullish here imo
    > Thinking $9,500 -> $9,100     pic.twitter.com\/Yu247Llfl5<\/a><\/p>\n

    — Loma (@LomahCrypto) January 29, 2020<\/a><\/p><\/blockquote>\n