Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
– The futures market and the price action pointed in different directions.
– The higher time frame takes precedence, but the trade can be risky.
Trading against the trend is always a risky business. Experienced traders can use shorter time frames to trade counter-trend moves in anticipation of a retracement to a significantly higher time frame on the price charts. Shiba Inu [SHIB] acted just under such a region.
Read Shiba Inus [SHIB] Price Forecast 2023-24
Bitcoin [BTC] fell below the $30.4k mark in the past few hours but held onto the $30k level. Still, volatility has been extremely low for the past five days and a move in either direction could be fast and strong.
In mid-February, Shiba Inu saw a strong bounce from the $0.0000117 level, forming a bullish order block on the four-hour time frame. But in early March, SHIB dipped below this level and the former bullish order block has retested as resistance multiple times over the past six weeks.
Therefore, it was a bearish breaker in the four-hour time frame and another rejection could happen soon. The RSI made a lower high while Shiba Inu moved higher on the price charts forming a bearish divergence.
Realistic or not, here is SHIB’s market cap in terms of BTC
However, the OBV was on the rise, signaling the demand behind the meme currency. Continued pressure from the buyers could push Shiba Inu back above the crusher and invalidate the idea presented above. On the other hand, a bearish reaction at the breaker block could start SHIB’s fall to the next support level at $0.00000998.
The futures market continued to reflect bullish sentiment
Coinalyze’s findings showed that the idea of a Shiba Inu rejection was inconsistent with speculators’ sentiment. The funding rate has increased over the past two days to show an increase in long positions.
In addition to prices, Open Interest also increased, which showed that market parties were prepared to bet on the further increase in prices. The price action highlighted the possibility of a bearish reversal, but the futures market showed bullishness – which one would prevail?
This post Shiba Inu [SHIB] bears may soon force a turnaround, and here’s why
was published first on https://ambcrypto.com/shiba-inu-shib-bears-could-force-a-reversal-soon-and-heres-why/