This week’s Bitcoin options expiry sits at $1.35 billion, but what is the expected impact on BTC price?
Bitcoin Threatens To Retreat To $60,000 As Bulls Seek Solid Ground
After a spectacular ascent to record highs, Bitcoin (BTC) is facing a reality check. The past week has seen a dramatic price correction, leaving investors wondering if this is a temporary setback or a sign of a more bearish future.
The world’s most popular cryptocurrency reached an intraday low of $64,620 on March 17th, a significant drop from its recent peak above $73,000. This pullback has triggered a wave of pessimism, with analysts pointing to declining profitability and a drop in daily active addresses on the network.
A Bearish Shadow Looms
According to analysts, investor sentiment has been hurt by a series of descending peaks and failed upturns, while selling pressure remains rampant as we approach the “weekly candle close.” This sentiment is echoed by data from IntoTheBlock, which shows a sharp decline in the number of addresses “In the Money,” signifying a decrease in overall profitability within the Bitcoin network.
Finding Support: A Beacon of Hope?
However, not everyone is hitting the panic button. Technical analysis suggests a potential support zone for buyers between $60,000 and $67,000. Popular trader Skew highlights this area as a possible turning point, while also acknowledging significant spot selling from major exchanges like Coinbase and Binance.
$BTC Spot Market Data Thread, in partnership @_WOO_X $BTC Binance Spot
Weekend spot buyer hereSpot Supply ($72K – $74K)
Spot Demand ($60K)Interestingly last bounce which was sold into also resulted in a stack of limit bids being quoted lower.
~ Keep an eye on those bids… pic.twitter.com/3PKHyddNlv— Skew Δ (@52kskew) March 17, 2024
Bulls On The Horizon: Are The Giants Awakening?
While the immediate future appears uncertain, some analysts remain bullish on Bitcoin’s long-term prospects. They view the current correction as a natural and healthy part of any bull run, pointing to historical data where similar pullbacks paved the way for further growth.
Related Reading: Bitcoin Crashes: Dip To $65,000 Triggers Over $400 Million Liquidation Avalanche
Adding fuel to the fire of optimism is the potential return of institutional capital. The recent resumption of buying from US Bitcoin ETFs and the prospect of a significant influx of funds from hedge funds and investment advisors in the coming months are seen as potential catalysts for a rebound.
Thomas Fahrer, CEO of Apollo, a decentralized online cryptocurrency platform renowned for its comprehensive crypto reviews and analysis of ETF inflows, echoes sentiments regarding X.
Fahrer characterizes the current state as a “Bear Trap” and pinpoints the resumption of buying from US Bitcoin ETFs on March 18 as a potential catalyst for an upward surge in X’s value.
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Emphasizing the significance of increased institutional acceptance, Fahrer anticipates a surge in liquidity within Bitcoin ETFs, suggesting that substantial capital inflows from institutional investors have yet to materialize.
The Verdict: Brace For A Volatile Week
This week will be crucial for Bitcoin. The coming days will be a test of the cryptocurrency’s resilience and its ability to overcome the current selling pressure. If bulls can regain control and positive sentiment prevails, a return to record highs remains a possibility. However, if the downtrend continues, Bitcoin could face a more extended period of correction.
Featured image from Pexels, chart from TradingView
Bulls make money, bears make money, pigs get slaughtered
Bullish investors profit from rising markets, bearish investors profit from falling markets, while “pigs,” often suffer losses in risky conditions.
Bullish Run for Injective (INJ): Will the Momentum Continue?
The Injective (INJ) price has experienced an uptrend, resulting in price increases since yesterday, May 28. This trend indicates a positive sentiment among investors, with more buyers entering the market and increasing prices.
Meanwhile, the uncertainty around the price of the general crypto market has caused speculations about whether this momentum will continue.
Assessing The Potential For Sustained Momentum
The bullish sentiment in the INJ market has affected its price positively, resulting in an increase of 8.78% in the last 24 hours. Also, the buyers have maintained this momentum, resulting in a surge of 8.56% in the 7-day trading period.
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The asset’s current price sits at $7.41 as of the time of writing based on CoinMarketCap data. The assets’ 24-hour trading volume and total market cap show positive market participation with an increase of 200.36% and 9%, respectively.
INJ has maintained the uptrend movement by forming higher highs and lows. This formation indicates that INJ’s price is under bullish control, and the demand is growing rapidly.
Also, the asset trades above the trendline, which may be considered a trendline support for investors and traders. This positive sentiment may attract more investors and increase prices.
Recent Bullish Fundamentals
Recently, there have been many partnerships and initiatives around the Injective ecosystem. This has resulted in bullish sentiment and price gains for INJ.
On May 24, Injective announced the launch of the first IBN-enabled SVM Rollup with their partnership, Eclipse, on their page. This initiative will enable Solana developers seamlessly interact and build with Injective and the broader Cosmos universe.
The INJ team made this announcement on May 13, 2023, stating that anyone interacting with dApps built on INJ or L1 Chain may receive an NFT. The surprise NFT announcement boosted the bullish momentum in the market.
Bollinger Bands & MACD Signals Bullish Momentum
The asset is currently trading above the upper band of the Bollinger Bands Indicator. This suggests a bullish movement and a potential buy signal for investors and traders.
It is important to note that an asset above the upper band implies that the price has moved to an extreme or overbought level.
In addition, the Moving Average Convergence/Divergence (MACD) is currently above the signal line suggesting a bullish sentiment. This indicates that the buying pressure outweighs the selling pressure.
The INJ price trades above the 50-day and 200-day Simple Moving Averages (SMA), indicating bullish sentiment. The price above both SMAs implies that the asset is under bullish pressure and a potential long-term bullish trend.
Also, a Demand Index reading of 0.170 suggests positive buying pressure in the market. This indicates that the buying pressure is relatively stronger than the selling pressure.
Featured image from Pixabay and chart from Tradingview
Chainlink (LINK) Under Bearish Strain As Selling Pressure Mounts
The bullish momentum in Chainlink (LINK), which spiked the asset to $6.75 on May 18, 2023, ended on May 19. From May 19 till date, LINK recorded a bearish pressure as the price gradually decreased each day till May 24, when it closed at $6.33.
Currently, on May 25, 2023, Chainlink’s price stands at $6.30 on CoinMarketCap, indicating a further decline over the past 24 hours.
LINK Bears Dominate Market With Strong Momentum
LINK is a prominent cryptocurrency that bridges the gap between smart contracts and real-world data. The native token of Chainlink, LINK, has exhibited negative performance within the last day’s trading session. Notably, the asset has been on a downtrend in the last seven days resulting in a loss of 6.25%.
These losses suggest sellers pressure buyers beyond their capacity to hold the price, leading to downward pressure on LINK’s price. Investor’s market confidence was reduced, resulting in a steady price decline over the last seven-day trading session.
Based on social sentiment indicators, CFG, Chainlink (LINK) displays a general negative sentiment with a reading of 17.5%. This implies negative social media conversations or a lack of enthusiasm among investors toward LINK.
Bearish Trendline Pattern
LINK has been on a bearish trendline chart pattern since April 18 till date, resulting in a constant price decline within the context of the downward trend.
This pattern is characterized by a series of lower highs and lower lows, indicating sustained selling pressure and a lack of bullish momentum. Traders and investors may interpret this pattern as a signal to anticipate further price declines and consider strategies that align with a bearish market outlook.
Due to increased selling pressure, LINK has broken through the first primary support level of $6.2 and is heading to the next support level of $5.9. With the current bearish momentum, the asset may soon hit this support in the short term.
LINK Technical Analysis Using Indicators
LINK’s trading chart for May 25 shows that the asset’s market trend is bearish. The asset trades below the 200-Day And 50-Day Simple Moving Averages (SMA), suggesting a bearish market sentiment.
This indicates that LINK will experience a bearish momentum both in the long and short-term trends. Investors may see this as an opportunity to take profits, which will cause a further price decline.
The Relative Strength Index (RSI) of LINK currently stands at 37.73, indicating a neutral market. However, the trend line is moving downwards, suggesting an increase in bearish momentum. It is worth noting that an RSI below 30 signifies strong selling pressure, indicating that bears control the market, whereas a level beyond 70 suggests bulls dominate.
Lastly, the Moving Average Convergence/Divergence (MACD) trading below the signal line confirms the bearish moves present in the market. This indicator suggests a high bearish momentum in the market, just like the RSI depicts.
Featured image from Pixabay and chart from Tradingview.com
Avalanche (AVAX) Trading Volume Skyrockets Amid Sustained Price Growth
Avalanche (AVAX) is gaining today as it seeks to retain its gains in the last 24 hours. Its trading volume is up by over 18% today, possibly sustaining its price recovery attempt.
Notably, AVAX entered the month of May with a bullish momentum trading at $16.66 on May 1, 2023. However, the bears have kept AVAX’s price at $14 since May 18.
It now approaches the $15 price level seeking to rediscover its positive price form. The increased trading volume today implies that more activities are ongoing on the network.
This surging interest in the network might help AVAX sustain its uptrend. A return to $21 remains likely for the asset in the long term.
AVAX Price Moves
AVAX is gaining today, forming a higher high on the daily chart. The bulls are intent on mounting a recovery rally. However, the bears are still active in the market.
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Since AVAX still trades below its 50-day and 200-day Simple Moving Averages (SMA), the asset will likely see a further price decline in the short and long term. The SMA’s display sell signals prompting traders to take short positions in the market today.
However, some indicators are pointing to a price recovery for AVAX soon. For instance, the Relative Strength Index (RSI) is 38.53 and close to the oversold region.
The RSI indicator mirrors the bearish trend that began on May 18, 2023, but the indicator is moving upwards, hinting at a potential trend reversal for the asset.
Although the AVAX’s Moving Average Convergence/Divergence (MACD) is just breaking above its signal line and showing convergence, its histogram bars display small green bars hinting at a potential trend reversal to the upside.
A close look at the chart structure shows that AVAX entered a downtrend on April 19, 2023. But it found support on May 22, sparking hope for a price recovery.
What’s Ahead For Avalanche?
AVAX has found valuable support at the $14.29 price level, a pivot point for the asset. It is currently trading above its closest resistance level of $14.29. However, the bears are still active in the market, intent on keeping it below the next resistance level of $15.21.
From historical price behavior, AVAX pivoted on the $14.29 support on March 11, 2023, rallying to $21.29 on April 18, with dips in between. It replayed the same action on May 22 and will likely rally again to the $21 price level in the longer time frame.
Note that crypto assets are volatile and can deviate from historical price action. Therefore sound technical and fundamental analysis is essential for trading.
Featured image from Pixabay and chart from Tradingview.com
Fantom (FTM) Price Surge Hints At Bullish Trend, What’s Ahead?
Fantom (FTM) has been on a bearish movement since April 19, 2023, resulting in a loss of about 30%. The price decline contributed to the negative market sentiment around the asset, making it hard for any possible retracement.
However, these days, some minor green candles indicate a potential bullish trend. This is because the price of Fantom experienced rapid price action recently as the bulls took back control and increased buying pressure.
Examining The Bullish Trend of Fantom (FTM)
The recent bullish momentum has triggered a significant price action resulting in a price increase in the general FTM market. The price of FTM has increased by 5.09% in the last 24 hours trading session, taking the token to a high of $0.3885.
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Also, with an increase of 57.26% in the 24-hour trading volume, the overall market cap is currently up by 5.09%. This data confirm the bullish momentum present in the asset.
Furthermore, the current significant buying and selling activities suggest a surge in market participation, likely leading to heightened price volatility.
The current market sentiment of Fantom (FTM) is Neutral, while the Fear & Greed Index is showing 50, meaning Neutral. This indicates that the market is stable, with no pressure from bears or bulls.
The recent development and partnerships with SUPA Foundation also contribute to the bullish sentiment among investors and traders.
As more individuals and institutions recognize the potential and value of the Fantom ecosystem, it’ll drive up buying pressure and support an upward price movement.
Fantom (FTM) Technical Analysis
Fantom currently trades above the 200-Day Simple Moving Average but below the 50-Day Simple Moving Average. This may indicate a mixed or transitional phase in Fantom’s price action.
The asset trading below the 50-Day SMA suggests a short-term weakness or a corrective phase in the price of FTM. Traders may use the 50-Day SMA as a resistance level preventing the FTM from moving higher.
The asset is trading above the 200-Day Simple Moving Average, indicating a potential long-term bullish price movement.
In general, the asset trading above the 200-Day SMA but below the 50-Day SMA suggests a phase where there’s a conflict between buyers and sellers. The Relative Strength Index confirms the present market indecision as Fantom is currently at the 44.53 region, which signifies neutral pressure.
The Moving Average Convergence Divergence (MACD) is slightly below the signal line, indicating a low pressure from the bears.
FTM trades between its support level of $0.3585 and resistance level of $0.4498, respectively. With increased bullish sentiment and buying pressure, FTM might hit the next significant resistance level of $0.5499.
Conversely, if the bears increase selling pressure and the bulls fail to hold their positions, FTM might change the trend and drop sharply to the next support level of $0.3034.
Featured image from Pixabay and chart from Tradingview.com
Toncoin (TON) Price Plummets After Bears Defy To Surrender Control
Recently, the price of Toncoin (TON) witnessed a rapid decline, causing investors and traders to worry about the asset’s potential. The bear’s refusal to surrender control can cause TON’s price to drop, increasing the negative market sentiment around it.
The entire cryptocurrency ecosystem is always volatile and unpredictable, with many price fluctuations based on various factors.
Toncoin (TON) Witnessed A Sharp Price Decline
After a slight bullish movement, a bearish momentum returned to the Toncoin (TON) market as the price fell by approximately 15.182% to a value of $2 on April 17, 2023.
However, today the bulls are gaining momentum in the market as the price of TON has increased by 5.88% to $2.0 within the last 24 hours trading session.
Notably, the 24-hour trading volume is up today by 22.76%, reaching $16 million. This indicates significant buying and selling activities, which may increase price volatility. Despite the recent pressure from the bulls, the bears may still control the market for a longer timeframe.
According to the market sentiment indicator, the current market sentiment is bearish, while the Fear and Greed index value of 50, Neutral.
Toncoin (TON) Price Analysis
TON trades below its 200-Day and 50-Day Simple Moving Averages (SMA). This suggests the market sentiment is bearish, keeping the selling pressure higher than the buying pressure.
It also indicates that the bears are pushing the price to cause a potential downtrend in TON price movement both in the long and short term.
The Relative Strength Index oscillator is currently showing 41.82, neutral. This indicates the market is now in the neutral zone; no pressure from any trend exists.
Lastly, the Moving Average Convergence Divergence (MACD) indicates bearish price movement as it is below the signal line. The massive pressure from the bears has caused the histogram to be below zero, confirming the bearish momentum.
TON is trading between its primary support level of $1.768 and resistance level of $2.099. The next significant support and resistance levels are $1.284 and $2.379, respectively.
Recent Development In The TON Ecosystem
Recently, TON published made a press release about the TON Foundation’s approved grant recipients for Round 1 of 2023 Q2.
This development will bring significant value to TON by improving the visibility of TON-based applications, enabling o-chain lending, and providing on-chain contract management.
The project will also introduce new user-friendly utilities for TON core services and will expose Toncoin (TON) to a larger audience through TON wallet integration with KaiOS. All these events will increase demand for TON, which may affect the price positively.
Featured image from Pixabay and chart from Tradingview
Uniswap (UNI) Surges After A Bumpy Ride, Is Bearish Run Over?
Uniswap (UNI) has been experiencing downward movement due to general market sentiment. The downtrend started on April 19, dropping from $6 to $5. However, the price rises gradually, indicating that the bulls are building momentum.
This slight increase has left traders wondering if the bearish trend is over and whether things might start getting better for Uniswap (UNI).
Signs of Bullish Sentiment As UNI Surges
Notably, UNI is up today by 3.27% at a high of $5.12 within the last 24-hour trading session. The 24-hour trading volume is also up by over 97.72% at $68 million, signifying that the UNI market is experiencing high activity. This data shows that the bulls build strong momentum with positive market sentiment.
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Moreover, the token still holds the 22nd position on the CoinMarketCap ranking with a market cap of $2.9 billion. According to CFGI.io, the market sentiment towards Uniswap (UNI) is bullish.
The indicator confirms the bullish sentiment with a 61 reading, meaning investors are greedy. This further shows that investors are optimistic about the future potential, and the recent increase in price may be sustainable.
UNI Technical Analysis
Even with the increasing price and trading volume, the technical indicators for UNI remained contradictory, with some pointing towards a potential bear market.
UNI is currently trading below its 50-day & 200-day Simple Moving Averages (SMAs) and has formed a Death Cross, a bearish sign. The Death Cross contributed to the price drop as it caused traders and investors to sell their holdings or take short positions.
The SMA indicator suggests that both the long-term and short-term trend is bearish. But, the price might reverse if the bulls hold their long positions. The Relative Strength Index (RSI), with a reading of 40.20, suggests that the asset is not in the overbought or oversold regions but in a neutral range.
This indicates that there’s no significant buying or selling pressure and UNI might experience some level of consolidation or a positive price change.
The MACD indicator suggests a bearish trend, with the MACD currently below the signal line. The histogram also confirms the bearish momentum as it is trading below zero.
UNI is trading at $5.14 at the time of writing. The bears are trying to break through the first support level of $4.746, a level several times.
However, if the bulls build strong momentum and break above the significant resistance level of $5.731, it might trigger a bullish trend. The next support and resistance level will be $3.358 and $7.651. Uniswap’s price can also lose most of its gains if the bears break the support levels successfully.
Featured image from Pixabay and chart from Tradingview
Stacks (STX) Stumbles As Bulls Fail To Remain Intact
On March 20, 2023, Stacks (STX) hit an all-time high of $1.30. But the price declined below the $1 mark on March 25 as the bears increased momentum. The asset has remained under the mark from March until May 5.
The 4-hour time frame chart today indicates that the STX token is trading on a downtrend movement due to high selling pressure. The token is also in a long-term downtrend, with the bears increasing its selling pressure forming lower highs and higher lows.
Will The Bulls Dethrone The Bears From The Market?
The overall structure of the STX market is bearish, with the bears battling with the bulls to take full control. The 4-hour chart shows that the STACK token is trading at $0.7276, with a decrease of -6.47% within the last 24 hours.
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STX’s 24-hour trading volume is down by 56.76%, with a total market cap of $1 billion. This also shows that STX is not experiencing many activities at the moment.
Despite the increased selling momentum resulting from the investor’s sentiment, the bulls are attempting to regain control by taking advantage of the support level at $0.67.
Stacks (STX) Price Analysis
Currently, STX is trading within the range of the 200-day simple moving average and the 50-day simple moving average, suggesting a neutral market position or consolidation phase.
Consequently, traders and investors may use the 50-day and 200-day SMAs as reliable support and resistance levels while trading.
Notably, a breach above the 50-day SMA may signal a potential short-term uptrend, presenting a buying opportunity for traders. The fact that STX lacks an obvious trend, either upward or downward, suggests that the price is stable.
Currently, the RSI level of STX is 41, which shows that the STX market is heading towards the neutral zone, and there’s indecision. The Moving Average Convergence Divergence (MACD) line is below the signal line, which suggests a potential sell opportunity.
Moreover, the histogram, which measures the distance between the MACD line and the signal line, is below the zero line, indicating that the security is trading below its long-term trend.
Additionally, the histogram is increasing, implying that the bearish momentum is gaining strength. This situation suggests that STX is facing downward pressure, which could continue for some time, allowing traders to short the token.
STX trades between the $0.6666 and $0.8275 primary support and resistance levels. Stack’s first important resistance level is $0.8275. If the price rises above this level, the next significant resistance levels are $1.0212 and 1.3103.
Conversely, with high selling pressure, the price of STX may fall below its important support levels of $0.5220 & $0.2684.
Featured image from Pixabay and chart from Tradingview
Cosmos (ATOM) Price Displays Intense Momentum – What’s Driving The Rally?
Cosmos (ATOM) demand has risen these past few days, resulting in a significant performance. According to CoinMarketCap data ATOM price has fallen to $11.69 after gaining momentum.
The current market cap of ATOM is $3.3 billion, with a 24-hour trading volume of $100 million. However, the trading volume is still down by 31.18%, indicating reduced network activity.
Reason Behind The Surge In Cosmos?
Cosmos is a constantly growing network of interconnected blockchains created with developer-friendly application components.
Inter-Blockchain Communication (IBC) protocol is the technology that connects these apps. The SDK platform Cosmos offers allows programmers to produce top-notch decentralized apps (dApps).
Other developers have also constructed applications on top of it, such as MM Finance and VVS Finance. Cosmo’s (ATOM) recent price surge could be attributed to its influx of developers topping that of Ethereum.
The other reason for the ATOM price increase might be the announcement from dYdX that it is building an independent blockchain on the Cosmos ecosystem instead of Ethereum.
Also, Bitcoin price soared above $29,000, pushing the market cap of all cryptocurrencies to surpass $1 trillion. Many crypto assets, including ATOM, recorded price growth due to correlation to BTC.
ATOM Price Action
Below is the technical analysis of ATOM price action on the 4-hour trading timeframe. And also the possible resistance and support zones.
Cosmos has broken through the short-term resistance level of $11.69 and is currently trading between $10.571 and $15.484 support and resistance levels. ATOM must break through the $15.484 primary resistance level to confirm the bullish momentum.
However, the bears are trying hard to break the $10.571 support level but couldn’t due to the high bullish momentum. If the bull’s strength is not strong enough to push ahead, the bears might take over the trend and cause a trend reversal.
What Do The Technical Aspects Suggest?
ATOM’s 50-Day SMA’s change in direction caused the market’s structure to change. If the bullish momentum doesn’t pick up, the trend may change to a potential bearish market.
The 50-Day SMA established a Death Cross by crossing below the 200-Day SMA, indicating a potentially bearish signal and suggesting a selling opportunity.
The Relative Strength Index (RSI) analysis indicator enables traders to determine the momentum and strength of the price movement of an asset within a period.
At the time of analysis, the RSI of ATOM/USDT is at 61.74 above the neutral zone. Therefore, this shows that ADA is neither in the overbought nor oversold zone. However, the buyers are building momentum to take ADA to the overbought zone while the seller pushes it down despite weak momentum.
Featured image from Forkast News and Chart: TradingView
Ethereum Needs To Breach This Level To Sustain Bullish Pace
Despite attempts by bears to drive prices down, Ethereum (ETH) managed to hold its head above water on Wednesday, topping $1,200 for the most of the session.
Coingecko records indicate that as the time of writing, ETH is trading at $1,129.50, a decrease of 0.5% over the past week and still slightly down from the previous day’s high of $1,228.88.
Even though the ETH/USD pair fell to an intraday low of $1,170.23 during Tuesday’s session, bulls were able to keep prices above this area.
The market has been dominated by bulls for the past few days. A 40 percent increase in 10 days can undoubtedly be read constructively, but it is essential to consider all possible outcomes.
According to the chart, ETH is currently trapped below the resistance zone on the daily time frame.
Ethereum Rally Seen If $1,500 Barrier Is Breached
This area, which extends from $1,300 to $1,500 (in red), was anticipated to provide substantial support during the severe decline early this month, but clearly failed to do so. Now, it serves as a solid barrier.
With this mechanism in place, a relief rally is likely to begin if buyers can push the price over the $1,500 horizontal barrier. Then, the possibility of staging a rally is revived.
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Source: TradingView.com
In the coming months, Ethereum is anticipated to succeed. Numerous improvements on the Ethereum chain will catapult ETH out of its current slumber. Nevertheless, the efficacy will depend on the conduct of Ethereum holders in the coming weeks.
Next ETH Handle Could Be $1,730
In the next bear run, the price of ETH might fall to $750 if bears maintain their tight grip on the market. Consequently, if inflation keeps going up, the cryptocurrency may decline further. However, if the bulls take the driver’s seat, the next ETH handle will be $1,730.
Recent movement has pushed the price of Ether up by as much as 8 percent in the past week, resulting in the 10-day moving average displaying indications of potential higher gains.
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ETH total market cap at $137.5 billion on the daily chart | Source: TradingView.com
If this short-term trend maintains its current course, market observers should notice a cross to the upside.
This may be the impetus that propels the price of the world’s second-biggest cryptocurrency back above $1,400.
The cryptocurrency market, which has recently mirrored the stock market, has fallen victim to the larger market sell-off of risky assets.
However, as a result of the advancements that the Ethereum team is implementing, especially Ethereum 2.0, the ETH price is anticipated to increase this year.
Featured image CoinMarketDo, chart from TradingView.com
Bitcoin Continues To Slide As Macroeconomic And Geopolitical Anxiety Persist
Bitcoin sank to an intraday low of $39,714.69 on Friday, following a late surge above Wednesday’s critical resistance level of $41,500. BTC was down as traders braced themselves for the lengthy Easter weekend.
Bitcoin – the world’s most sought-after digital asset – has fallen about $10,000 from a two-week high of $48,220, its highest level in over four months.
However, following weeks of retreats, it looks as though market analysts have identified a stable floor at $39,300, with bulls now attempting to drive prices higher once more.
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Bitcoin Feeling The Pressure
Concerns about macroeconomic and geopolitical concerns have lingered, keeping some investors away.
Russian President Vladimir Putin stated during a news conference on Thursday that peace talks with Ukraine have reached a stalemate.
Putin further vowed that Russia’s “military operation” will continue indefinitely.
On a technical level, Bitcoin’s 200-day moving average significantly stymied the recent bull run, resulting in a large price fall.
Bears currently control the market, and the price is rapidly declining, resulting in a break below the 50-day and 100-day moving averages.
The $37K and $34K demand zones represent the next levels of Bitcoin support. If the price holds the short-term significant support level around $37K, it may resume its climb toward the significant resistance level at $45K.
BTC total market cap at $752.41 billion on the daily chart | Source: TradingView.com
BTC Could Touch $33K
If this level is not maintained, Bitcoin’s next stop could be the $33K important demand zone.
Bitcoin has lost more than 15% in the last week, prompting one indicator to declare that the market has entered a time of “severe anxiety.”
The price decline occurs in the context of a broader downturn in global financial markets, prompted by geopolitical crises and uncertainty over the prospect of the US Federal Reserve tightening monetary policy.
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Future Still Looks Bright
Despite the current dismal performance of Bitcoin, a prominent trader believes that the cryptocurrency’s price might potentially double in the next two years.
Peter Brandt made a prediction in response to a tweet from Tuur Demeester, a long-time Bitcoin supporter.
According to the latter, following extended periods of consolidation, Bitcoin tends to erupt “like nothing else on this earth.”
According to Brandt’s forecasts, Bitcoin may either double in value in two years or continue its streak of sideways trading for an extended length of time.
A seasoned trader previously predicted that Bitcoin’s next “rocket stage” will begin in 2024, based on how prior market cycles have unfolded.
Featured image from DataDriveInvestor, chart from TradingView.com
$150 Million In Short Squeeze Liquidated As Bitcoin Scales Above $53,000
On Monday, Bitcoin surged above $53,000. At 13:15 GMT, the coin was exchanging hands at $53,324, a 7.07% increase over the last 24 hours.
However, about $150 million worth of shorts were liquidated within a few hours as bulls returned to take a firm grip over the market. The cryptocurrency rose from $47,000 to over $53,000 as the short squeeze occurred following a fall to the bear market late last week.
Other cryptocurrencies like ETH, BNB, also experienced short squeeze as they rose by around 15%. As Bitcoin recovered by 12% within a single day, it appears the futures market is completely reset.
Bitcoin Short Squeeze Is Bullish
A short squeeze refers to when short-sell orders in the futures market are liquidated in a short period of time. When the shorts are liquidated, short sellers will have to buy back their positions. This automatically causes buyer demand to increase in the market.
Hence, the number of shorts rapidly declines, and long contracts or buy orders begin to dominate the market.
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In the case of Bitcoin in the last 24 hours, despite BTC’s strong rally back up, the funding rate has remained relatively low. According to Bybt.com, the funding rate across major exchanges for Bitcoin is below 0.01%, which is below the neutral rate.
At the current rate, there are still more longs in the futures market, which could push the price to go higher.
Lex Moskovski, the CIO at Moskovski Capital, said:
“~$150M of #Bitcoin shorts liquidated on this brief move up. Nothing smells better than roasted bears in the morning.”
Sentiment From Traders Show Bullish Expectations
In the near term, many traders are optimistic that the $55,000 price level is an important one to reclaim for the chance of Bitcoin reaching its previous ATH.
Johnny, a cryptocurrency derivatives trader, said:
“Swept the lows and now we have a very strong bounce. We are not out of the woods yet. Reclaim $55,500 and than we can talk about new ATH. For now, play it level by level. Strong reaction so far.”
Another trader, Adnan Van Dal, noted that if the price of BTC doesn’t drop until the US market opens, the chance of the price going higher is highly probable. He wrote on Twitter:
“If $BTC can make it to the US open (EUR am Man shrugging) think cud be ok for a bit. Durable goods orders at open, actual data’s been good, SPX near ATH post useful Friday profit taking & started firm. Think helps – coincident SPX / $BTC weakness a thing this year. TSLA wildcard later tho.”
As it stands, it appears that the bulls are back. The bears’ grip on the market has been short-lived. Currently, the price is aiming for a recovery above $55,000 and the likelihood that the benchmark cryptocurrency will hit a new all-time high soon cannot be ignored.
Related article | Bitcoin Makes Comeback, Here’s Why $53.5K Holds The Key
Featured image from Pixabay, Charts from Tradingview.com
