Last weekend, Bitcoin dipped below the $6,000 price mark, tying a February low, but according to trading activity from the fourth largest cryptocurrency exchange, Bitfinex, investors are taking on bullish positions despite a bearish outlook.
Bitcoin prices have largely fallen from their $20,000 price mark reached in December 2017 and are down about 60% year-to-date. After dropping to as low as $5835.31 last Sunday, Bitcoin has been finding some support around the $6,000 price level.
Related: Where’s the Bottom for Bitcoin?
Based on a Bollinger Bands analysis, a technical indicator that measures market oscillations to track volatility, a downward sloping trend provides evidence that bears still comprise the majority. Additionally, according to the Chaikin Money flow, an indicator that tracks money flow volume into an investment, selling pressure is still present, showing more bearish signs.
However, juxtaposing this bear position is an increase in longs by 16.5 percent since the middle of June, according to Yahoo! Finance. In addition, short positions have dropped since Bitcoin prices fell below the $6,000 mark on Sunday by 25 percent.
The activity in bullish positions could be that investors feel the $6,000 mark might signal the latest floor for Bitcoin prices and a possible rally could be in store. As of 12:00pm Eastern Time, Bitcoin’s price is $6,121.44–up 0.05% in the past 24 hours.
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