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BTC Price Analysis: Upside Run Continues for the 7th Day in a Row As Nearly $1.1 Bln in Bitcoin Shorts Liquidates

  • BTC retraced to $36,413 looking to form the next narrow range between $35,000 — $40,000
  • BTC/USD continues to regain the lost ground
  • Investors attribute rally to short positions of nearly $1.1 bln

Bitcoin has broken out to the top range of its three-month consolidation pattern around $40,593, implying we could have another run in gains to $45,000 or roughly. Bearish participants still cannot take a clear position as BTC retraced to $36,413 looking to form the next narrow range between $35,000 — $40,000. BTC/USD continues to regain the lost ground at the time of writing the analysis, it is trading far above the moving average (MA 50) and former resistance zone at $35,000. The price movement has resulted in some extremely fascinating technical developments in the Bitcoin picture. Following the rise of Bitcoin and the subsequent growth of Altcoins, the overall capitalization of the crypto market has increased by $140 billion. Investors attribute rally to short positions of nearly $1.1 bln in Bitcoin being liquidated amid the speculation Amazon may be venturing into digital currencies which are now refuted.

Key Levels
Resistance Levels: $45,000, $43,000, $40,000
Support Levels: $35,000, $33,500, $30,000

BTC/USD Daily Chart: Ranging

BTC/USD Daily Chart

On Monday, BTC reached an intraday high of $40,593 before retracing to $36,413 Tuesday as bulls attempt to turn this resistance zone into support in anticipation of a move higher. A breach of the moving average (MA 200) boundary near $45,000 could give market participants the incentive necessary to steer the pair in a clearer direction. The RSI indicator is presently above 60 on the daily period, indicating a buy signal.

As discussed in the introduction, aside from liquidations, many shorts were compelled to cover their positions as BTC closed over the 35k strike price of their options. All of this transpired throughout the weekend. A strong weekend usually leads to an even stronger week. If the price closes above $38,000 today, the price may quickly rise towards $45,000. The price trading above the moving average (MA 50) also shows more room for upside expansion.

BTC/USD 4-Hour Chart: Bullish

BTC/USD 4-Hour Chart

The short-term frame moving average (MA 50) is about to stage a cross above the moving average (MA 200) on the 4-hour chart which can lead to a powerful one-way directional breakout reinforcing the current bullish bias. Bulls are more likely to target the BTC/USD pair’s next barrier, which is about $42,000, now that price is above the $37,500 level. Alternatively, around the $33,500 level, the BTC/USD pair could pull back towards the MAs.

Neither the bears nor the bulls gathered enough impetus last week to successfully breach either of the range’s borders between $28,800 and $42,000. This current week’s high is hovering just above the level at $40,500, and a new test is the most likely scenario. A break here would reinforce positive predictions for the BTC/USD’s course and quickly close the sell-off towards the $30,000 support level.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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