Bitcoin (BTC) pressed on with its confident recovery yesterday, having weathered the storm of cascading margin liquidations in October and November. The price is now up, holding its ground above the support zone of $91,000–$92,000. However, the road below still has some potholes: the untested levels at $8,700 and $85,700 remain tempting, and a return to them in the near future is on the cards. A sneak peek at the Bitcoin futures order book on the CME reveals a telling story—a very dense accumulation of put options is stacked both above and below the current price. This is a sign that major market players are laying the groundwork and bracing for the next bearish corrective wave.
The writing on the wall gets clearer with the rise in the US Treasury Inflation-Protected Securities (TIPS) yield, which could be the catalyst for a new downtrend. Ironically, for the token's rally to really have legs, it needs more retail investors. The market has to convince enough traders that selling is the smart move. This means fostering a generally pessimistic mood across the crypto market.
The potential for Bitcoin to dip below $80,000 again is still in play. Such a shake-out would be the final nail in the coffin for lingering retail bulls, finally clearing the decks. This would open the door for big players to step in and open their positions with a better risk-reward ratio.
The overall recommendation is to sell BTC after it breaks out of the $90,850 range. Lock in profits at $87,055. Set Stop loss at $93,500.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
