Cryptocurrencies decline today. Bitcoin is losing nearly 4% and retreating from levels close to yearly highs near $37,800. The biggest cryptocurrency may realize a potential short-term trend reversal as bearish double top pattern widens.
- Ethereum is trading down 2.7% and retreating to psychological support at $2,000, and the only cryptocurrencies gaining today are Dogecoin and Avalanche, which is trading up nearly 10%. A decision on Hashdex's application to create a spot ETF has been delayed by the SEC regulators;
- Traders are pricing a liquidity gap between $35,000 and $33,000, which could encourage bearish positioning in the derivatives market, potentially offering a higher premium. The situation comes at a time when the profits of short-term BTC traders yesterday approached around 20%, historically heralding higher supply and profit-taking.
Looking at Bitcoin's chart on the H1 interval, we see a double top pattern. A test of the 38.2 Fibonacci retracement of the October upward wave at $33,600 is possible in the scenario of further declines.
Source: xStation5
