Bitcoin Price Defends $6K as Traders Go Long

Bitcoin‘s (BTC) price charts remain biased to the bears, but market positioning on a major exchange suggests a sustained break below $6,000 may remain elusive in short-term.

At press time, the leading cryptocurrency is trading at $6,100 on Bitfinex, largely unchanged on a 24-hour basis, and technically speaking, BTC remains on the defensive as discussed yesterday.

Further, the cryptocurrency markets will likely remain risk averse as the sell-off in ETH/BTC – the risk barometer of the cryptocurrency markets – is seen gathering pace in the next 24 hours.

So, going by the technicals alone, it seems safe to say that BTC is likely to find acceptance below the February low of $6,000 soon.

However, activity on Bitfinex, the fourth biggest cryptocurrency exchange by 24-hour trading volume, shows that BTC/USD shorts have been getting liquidated in recent days, while investors have been loading up on BTC/USD longs, creating upward pressure on price.

Thus, there is merit in the bears being cautious, as a corrective rally can’t be ruled out.

Daily chart

The falling channel and downward sloping Bollinger Bands (standard deviation of +2, -2 on 20-day moving average) indicate that the bear grip on bitcoin is still intact.

The Chaikin money flow (CMF), an oscillator that measures buying and selling pressure, remains below zero, indicating strong selling pressure.

The longer the CMF remains the remains in a zone (either above zero or below zero) the more consistent the sentiment. In BTC’s case, bearish sentiment is quite strong as the CMF has been hovering in the negative territory for the fifth consecutive week…

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