- SHIB had a bullish structure on the one-day chart.
- Despite this turnaround, short-term sentiment remained bearish.
Shiba Inu [SHIB] saw a deep retracement after Bitcoin on January 3 [BTC] faced with strong selling pressure. The price seemed poised for a downtrend, but broke the bearish market structure a week later.
A week ago, a whale took $10.27 million worth of SHIB from centralized exchanges. This led to speculation that prices were about to rise, and a few days later they actually rose by almost 10%. This caused the market structure to become bullish again.
Integration of the structure and Fib levels
In late December, the bullish order block at $0.00000916 was seen as a strong demand zone. The confluence with the 50% Fibonacci retracement level was a bonus. Nevertheless, selling pressure increased significantly in January.
Source: SHIB/USDT on TradingView
The 78.6% level at $0.00000827 was tested and saw a significant jump. On January 7, SHIB posted another bearish candle. This was followed a week later by a structure break, marking it as a bullish order block (cyan).
At the time of writing, SHIB was trading just above this zone. The OBV rose in January, but momentum remained favorable for the bears. The RSI struggled to climb past the neutral 50 mark.
The Open Interest was also bearishly poised
Source: Coinalyse
To gauge short-term market sentiment, AMBCrypto analyzed the Open Interest trend over the past two weeks. As expected, OI dropped dramatically on the 3rd as prices plummeted. Since then, the OI has not been able to recover.
Realistic or not, here is SHIB’s market cap in BTC terms
Each price increase, such as that from January 8 to 11, was not accompanied by an increase in the OI. This indicated a lack of conviction in the futures market.
Over the past three days, the OI has fallen along with the price, showing bearish sentiment in the short term.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.