Traders have started to lean towards a bullish short term trend for Bitcoin following what has been a relatively stable week for BTC after a big drop in October.
Major cryptocurrencies in the likes of Ethereum, Binance Coin, and TRON have recorded minor gains against both Bitcoin and the U.S. dollar in the range of 0.5 to 6 percent, with Binance Coin seeing the largest increase in price on the day.
When Bitcoin sees a sideways movement throughout an extended time frame, alternative cryptocurrencies tend to rally. Throughout the past week, Ethereum has remained above a key support level at $180, keeping other altcoins afloat.
Technicals favor Bitcoin upside movement
According to a trader, most shorts in the bitcoin market have been closed out and after five consecutive weeks of negative “delta,” the short term trend of BTC looks bright. He said:
“I am not so sure I want to be a seller of this market right now in this very position. All shorts have been closed out. We are on our 5th straight week of negative weekly delta. The stats on this are not in favor of red continuation with respect to previous occurrences.”