The selling pressure across major spot exchanges such as Coinbase and Binance is getting absorbed. As the Binance news show, technical analysts are optimistic and saying that a relief rally for Bitcoin may be just on the corner.
According to the well-known Bitcoin trader Jacob Canfield, “lots of sells” are being bought up on low time frames. This implies that a relief rally in the short-term may be likely.
Other analysts at Ledger Status note that the monthly BTC chart of Bitcoin with the 20 simple moving average (SMA) indicator is currently demonstrating signs of a bottom. This was discussed by the analysts who also noted that technical indicators point towards a short-term accumulation period where Tether (USDT) is starting to show premiums against Bitcoin. Typically when this happens and the USDT/BTC pair is being traded at a higher price than fiat exchanges, it indicates that investors are accumulating.
The CEO of Three Arrows Capital, Su Zhu, also hinted on a relief rally with his latest tweet where he said:
BTC/USDT premiums and price action show clear signs of accumulation and money flow back into risk.
Would not surprise me to see 9K+ before end of Jan.
— Su Zhu (@zhusu) December 28, 2019
Other analysts are anticipating a new edge for a relief rally – noting that the signals of a short-term bottom are here and may coincide with the monthly close of Bitcoin (BTC). In three days, the monthly candle of Bitcoin will close, something that is going to be the seventh lower high candle since early 2019. Even though BTC is in a bearish trend, a relief rally is likely to occur as the cryptocurrency nears a critical juncture on December 31.
DonAlt was one of the analysts who suggested that Bitcoin could retest the high point of the current range between $6,700 and $7,900. He noted that BTC is “still on track, still looks like we’ll visit range high” and reiterated that “long squeeze into short squeeze has been the name of the game in the 2nd half of 2019, no reason to expect that to change.”
Still on track, still looks like we'll visit range high.
Long squeeze into short squeeze has been the name of the game in the 2nd half of 2019, no reason to expect that to change.
(Accidentally deleted the old chart, excuse the missing squiggly) pic.twitter.com/BfyKdEysqa
— DonAlt (@CryptoDonAlt) December 28, 2019
The truth is, it is still too early to determine whether the macro trend of Bitcoin is optimistic as BTC and the rest of the crypto market have not shown strong signs of a reversal. Technical analysts are predicting a relief rally which will be brief – and cryptocurrency news full of updates on the selling pressure.
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