Bitcoin is overvalued with 11,000 US dollars in the short term, analysts of Phi Deltalytics.The statement follows a decline in net positions in the Bitcoin Futures contracts of the Chicago Mercantile Exchange in the past week.It showed that institutional investors are on the decline, a mood that runs on a correction in the Bitcoin market.
According to analysts of Phi Deltalytics, it is unlikely that a cheerful Bitcoin price rally will continue over 11,000 $ in the short term.
Bitcoin CME positions fall
The crypto-focused Investment-consulting portal, according to the BTC/USD is overvalued, about $ 11,000. As a reason for a decline in the net Bitcoin Futures positions on the Chicago Mercantile Exchange (CME) is headed in the last week.
Phi commented: The collapse show that institutional investors are short-term bearish.
“In the short term, a correction is needed, since institutional traders at the CME continues to be bearish and the decline in net positions last week to an overvalued 11k-indicates price in the short term.”
The demand for Bitcoin over $11,000 in the case of institutional investors is low. Source: TradingView.com
Phi is a Testament to the short-term bearish Outlook with a further historically correct down signal. It indicates a gap in the BTCUSD Futures Charts on the CME – a lack of candles range between $9,600 and $9.900.
Maybe the Bitcoin will be corrected-price down to fill the gap.
“90 percent of the historic BTC-CME-gaps are sooner or later filled (generally by BTC movements on the weekend when the CME is closed),” said Phi.
“The decline we have just seen, is also another gap filler-action. So be careful with the 9,6-9,9 k-gap. This gap has not yet been filled, and you probably will be soon filled“.
The analysts set a primary correction target at approximately 9.091 $ – a level that was during the whole of June and July, the lower limit for Bitcoins down attempts.
Favourable Macro Outlook
Despite the risk of falling below 11,000 for the$, could Bitcoin go up due to favourable macroeconomic fundamentals back on for $ 11,000.
Phi has involuntarily drawn attention to the possibility of a correction in the S&P 500 down. Since Bitcoin has followed the U.S. Benchmark, from their mid-March lows reached out, risked the crypto-currency to decline, should the Wall Street Index next break.
Nevertheless, the S&P 500 was able to maintain despite the weaker economic prospects for positive returns up to the year 2020. Phi commented that investors would forget the weak financial data due to the increase in the number of COVID cases in the U.S., is practically.
This does not mean that you are in the mood to sell shares.
Bitcoin and Wall Street indices against the US Dollar Index. Source: TradingView.com
Part of the reason TINA is the There-is-No-Alternative. The investors in the attractive Safe-Havens from go – especially US government bonds, whose yields have declined in the face of near-Zero interest rates.
On the other hand, the US Dollar fell due to Oversupply on the two-year low. The investors to riskier investments such as stocks and Bitcoin pushed.
“The market is governed more by the expectations than according to the actual conditions,” said Phi.