Disclaimer: The findings in the following analysis are the sole opinions of the author and should not be considered investment advice
- The lower time frame structure turned bearish after GMT lost $0.4 to the bears
- Futures market participants also had bearish sentiment
Bitcoin faced rejection at short-term resistance zone at $17.3k. It fell below the $17k mark and altcoins faced selling pressure in the last couple of days as well. STEPN token GMT has witnessed a strong bearish trend in recent months. The next couple of days are also likely to see losses.
Read STEPNs [GMT] Price prediction 2023-2024
The FOMC meetings on December 13 and 14 are expected to produce an increase of 0.5 percentage points. Pending economic data can affect things and the announcement of a higher interest rate could see a bearish movement across the crypto movement.
Failure to reverse the range meant that $0.38 was the next target
Highlighted in yellow, the GMT range extended from $0.345 to $0.417, the midrange was at $0.38. The token has been trading within this range since November 10. On higher timeframes, the $0.4 level has been a significant level. In the final hours of trading, this level was retested as resistance.
Last week GMT failed to climb past the ranges again. Therefore, traders were presented with a shorting opportunity. Bitcoin’s short-term weakness could also send GMT lower to $0.38.
Can a bounce at that level be expected? The Relative Strength Index (RSI) and On-Balance Volume (OBV) indicated that sellers were dominant. RSI retested neutral 50 as resistance around the same time price tested $0.4 as resistance. Meanwhile, the flat OBV showed a lack of buying pressure. Therefore, GMT was likely to fall below $0.38 and towards $0.36 and $0.345 in the coming days.
Open interest and financing interest showed discouraged buyers
After 7 November, a large part of OI was wiped out. This has not been recovered in the month since. The formation of the range coupled with the flat OI implied range bound trade is likely to continue in the coming weeks.
On December 7th and 8th, OI and prices rose, and bulls had some hope that a breakout would materialize. It did not, and in the last two days both OI and prices have fallen. This indicated discouraged bulls, and could see another wave of selling soon.