Bitcoin Price Defends $6K as Traders Go Long

Bitcoin's price charts remain biased to the bears, but market positioning on a major exchange suggests a sustained break below $6,000 may remain elusive in short-term.

At press time, the leading cryptocurrency is trading at $6,100 on Bitfinex, largely unchanged on a 24-hour basis, and technically speaking, BTC remains on the defensive as discussed yesterday.

Further, the cryptocurrency markets will likely remain risk averse as the sell-off in ETH/BTC - the risk barometer of the cryptocurrency markets - is seen gathering pace in the next 24 hours.

Activity on Bitfinex, the fourth biggest cryptocurrency exchange by 24-hour trading volume, shows that BTC/USD shorts have been getting liquidated in recent days, while investors have been loading up on BTC/USD longs, creating upward pressure on price.

The Chaikin money flow, an oscillator that measures buying and selling pressure, remains below zero, indicating strong selling pressure.

The longer the CMF remains the remains in a zone the more consistent the sentiment.

In BTC's case, bearish sentiment is quite strong as the CMF is hovering in the negative territory for the fifth consecutive week.

BTC could well close below $6,000 in the next day or two, and maybe extend the decline from the May high of $9,990 towards $5,000 in the next few weeks.

As mentioned above, BTC/USD longs on Bitfinex have increased by 16.5 percent since June 17, as seen in the chart above.

View While the technical outlook is bearish, we are unable to rule out a corrective rally above the immediate resistance of $6,425, courtesy of the bullish market positioning seen on Bitfinex.