The price of Bitcoin (BTC) surged from $9,160 to $9,584 within the last 48 hours. But despite the 4.6% gain, some traders are turning short-term bearish on the top cryptocurrency.<\/p>\n
According to several technical analysts, the market structure of Bitcoin remains slightly bearish. At higher time frames, $9,500 could still technically be a lower high. The term lower high is used when the recent peak of BTC is lower than previous highs.<\/p>\n<\/p>\n
The daily chart of Bitcoin. Source: TradingView.com<\/p>\n
On June 3, June 10, June 22, and July 22, BTC hit $10,473, $10,180, $9,794 and $9,584, respectively. Each peak is lower than previous highs, making it a lower high formation.<\/p>\n
Some traders are bearish on Bitcoin for two major reasons, namely a lower high structure and declining volume.<\/p>\n
Crypto trader Zoran Kole, for example, said that a bearish market structure at a higher time frame remains intact. On the daily chart, four consecutive lower highs indicate a potentially weak consolidation phase. He wrote:<\/p>\n
HTF Bearish MS remains intact. One shouldn't use a potential LH as invalidation for a swing position unless that LH is confirmed with a LL. Patiently waiting for the 95xx sweep to compound. Looking to sell 9530-9580. Clear invalidation above 97\/98 (break in MS).<\/p>\n<\/p>\n
A potential lower high at a higher time frame for Bitcoin. Source: Zoran Kole<\/p>\n
Meanwhile, a pseudonymous trader known as Crypto ISO suggested that the market could see a pullback if BTC hit a lower high. For it to confirm, BTC would have to break down from $9,500. The trader said:<\/p>\n
Would be tough for a lot of people if this is the lower high. Those that understand MS will get this.<\/p>\n
Pseudonymous trader DonAlt said that for a short-term bearish trend to confirm, BTC ideally needs to drop below $9,300. If BTC stays above $9,500, the popular trader said short-term market bias could weaken.<\/p>\n
He said:<\/p>\n
Close above that red line today ($9300) and I might reconsider my short term bearish bias (mid-term bear bias remains). Close below and I'll consider shorting more aggressively targeting the green line ($8500) first and green area second (~$7000).<\/p>\n
Apart from technicals and market structures, there are more fundamental factors supporting a bullish case for Bitcoin.<\/p>\n
For instance, the hash rate of BTC remains resilient, leaving the mining ecosystem healthy. Lower selling pressure from miners, combined with declining exchange inflows, suggests BTC could see an uptrend.<\/p>\n
Data from Binance Futures show that the majority of top traders on the platform remain majority long on Bitcoin. But over 50% of traders are short on large-market cap alternative cryptocurrencies like Ether (ETH) and XRP.<\/p>\n
Raoul Pal, the CEO of Global Macro Investor, said on July 23 that Bitcoin could outperform gold, which has been on a strong rally in recent weeks. He stated:<\/p>\n
The other bet is that bitcoin will likely beat gold too. The bitcoin\/gold cross looks powerful but has yet to break out.<\/p>\n
Whether the short-term bearish market structure could cause a near-term pullback, or bullish fundamental factors would offset the risk, remains to be seen.<\/p>\n
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