Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The market structure was clearly bullish. The price encountered a cloud of resistance, which meant a pullback could happen.
Bitcoin was hovering around $23.4k at the time of writing. The $24.5k – $25k area has been offering stiff resistance to BTC since mid-August. There may be some demand in the south in the $21.6k area. Shiba Inu has pumped alongside BTC gains.
Read Shiba Inu’s Price Forecast 2023-24
Since December 30, Shiba Inu has posted a gain of almost 100%. From early November, it was approaching a resistance level. A breakout and a rejection are both possibilities. The direction of BTC could also determine SHIB’s next move.
The bearish order block at $0.000013 was beaten convincingly and SHIB rushes to the next resistance at $0.000016
Source: SHIB/USDT on TradingView
A bearish order block was highlighted in cyan in the $0.000013 area. However, the past few trading days have seen SHIB skyrocket past this resistance. Therefore, a retest of this area would be a buying opportunity as it would be a bullish breaker at a significant horizontal level.
Another order block was seen in the north at $0.000016. The $0.0000173 and $0.0000182 levels are also the levels to watch out for. Since SHIB has already reached this resistance area, a shorter time structure reversal could precede a sharp pullback to $0.000013.
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The $0.0000143 level was the highest low in the 1-hour time frame. A move below this level converts the lower time frame structure to bearish.
While aggressive traders can use this move to enter scalp short positions, more risk averse traders can wait for a move in the $0.000013 area to enter long positions.
Conversely, a move to $0.0000173-$0.0000182 levels may present a selling opportunity after a bearish structure break and retest.
A 3-month high on the MVRV ratio meant it was time for bulls to be cautious
Source: Sentiment
The network growth metric has seen some spikes over the past month, most notably on January 18 and February 4. Meanwhile, the average coin age (90 days) has fluctuated since early January.
This meant that large amounts of the coin were moved and there was no accumulation trend like the one at the end of December.
But the more concerning statistic was the 30-day MVRV, which hit a 3-month high. This was not good, especially in a bear market, as short-term holders are more likely to sell their holdings for a profit.
This post Shiba Inu is strongly bullish, but sellers may soon be looking for scalping opportunities
was published first on https://ambcrypto.com/shiba-inu-is-strongly-bullish-but-sellers-can-look-for-scalping-opportunities-soon/
