[Analysis] "Bitcoin (BTC) Loses Bullish Momentum... Concerns Over Temporary Correction"
Summary
- Bitcoin fell to $91,000 after reaching an all-time high, indicating a weakening of the market's bullish momentum.
- The high volatility premium of Bitcoin call options suggests a weakening of optimism and raises concerns about a temporary correction.
- The upper and lower wicks on the daily chart indicate simultaneous buying and selling pressure, suggesting market confusion.
Concerns have been raised about a temporary correction in Bitcoin (BTC).
On the 5th (local time), CoinDesk reported, "Bitcoin fell to $91,000 after hitting an all-time high the previous day," stating that "this is a warning sign that the market has lost its strong bullish momentum." It continued, "Bitcoin call options are currently trading at a volatility premium three times higher than put options," indicating that "optimism about Bitcoin has weakened."
CMT Digital stated, "The upper wick formed above $100,000 on the daily chart indicates buying pressure," but also noted, "The occurrence of selling pressure during the same period, resulting in a lower wick, signifies market confusion." It further explained, "Candles with wicks on both ends, along with RSI bearish divergence, suggest a temporary market correction," adding that "there are concerns about excessive long positions."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
