After buying and selling within the $6,900 to $7,250 vary for greater than 19 days, Bitcoin (BTC) value lastly managed to pierce the $7,250 resistance in a excessive quantity surge which resulted within the liquidation of practically $70 million price of shorts at BitMEX.
BitMEX XBTUSD Liquidations. Supply: Skew.com
The sturdy upside transfer allowed the digital asset to safe the next excessive at $7,738, a value not seen since earlier than March 13 when the Bitcoin value crashed to $3,750.
With simply 18 days to go earlier than the Bitcoin halving occasion, merchants and hodlers will each be questioning whether or not that is the lengthy awaited pre-halving pump or simply one other brief squeeze that moved the worth up a step earlier than trying to deal with $8,000.
Crypto market each day efficiency. Supply: Coin360
Some would conclude that the surge to $7,738 is vital because it lessens the probability of Bitcoin dropping to current lows under the $6,900 help.
Whereas true, $8,000 and $8,500 have lengthy been anticipated to current appreciable resistance and whereas crypto Twitter could also be uber bullish on Bitcoin, the Crypto Concern & Greed Index exhibits traders stay extraordinarily cautious about Bitcoin’s short-term prospects.
Crypto Concern & Greed Index. Supply: Various.me
Whereas the index exhibits a marginal enhance in crypto market sentiment over the previous month, the present studying at 19 continues to be within the “Excessive Concern” class, not precisely the place one would anticipate it to be 18 days earlier than halving.
BTC USDT each day chart. Supply: TradingView
As proven on the each day chart and predicted in earlier evaluation, the squeeze as much as $7,700 exploited the small quantity hole on the VPVR from $7,160 to $7,743 useless on and the following problem could be discovered on the 61.8% Fibonacci retracement the place the 100 and 200-day transferring averages reside.
The Bollinger Band transferring common can be smack dab on the 100-MA so its anticipated that flipping $8,000 to help will probably be a problem. Even when the worth pushes above $8,000, the VPVR exhibits $8,500 as one other degree of resistance however one would hope that by the point this degree is reached $8,000 and $7,500 will probably be prepared to supply help.
After reaching the each day excessive at $7,738 the worth rapidly pulled again $200 however on the time of writing the MACD continues to rise above the sign line and histogram exhibits a continued enhance in momentum on the 4-hour and each day timeframe.
BTC USDT 4-hour chart. Supply: TradingView
The RSI additionally stays in bullish territory on each timeframes however on the 4-hour and 1-hour timeframe merchants will discover that purchase quantity has just about returned to its pre-surge degree.
Alongside declining quantity, the lengthy higher wicks on the final three candles additionally alerts that short-term momentum is fading as merchants take income and probably anticipate that both the worth will consolidate within the present vary or pullback to retest the previous resistance ranges.
In the interim, merchants ought to watch quantity to see if a construct up in purchase quantity supplies the sign that the worth will try to assault the 61.Eight Fib degree at $7,924.
On condition that on the time of writing, Bitcoin seems to be dropping among the momentum which pushed it to $7,700 earlier right this moment, merchants may also search for the worth to retest earlier ranges of resistance within the $7,450-$7,300 vary.
The views and opinions expressed listed below are solely these of the author and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails danger. It is best to conduct your personal analysis when making a call.
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