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 resista
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 value of shorts at BitMEX.
BitMEX XBTUSD Liquidations. Supply: Skew.com
The robust upside transfer allowed the digital asset to safe a better 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 quick squeeze that moved the worth up a step earlier than making an attempt to deal with $8,000.
Crypto market day by day efficiency. Supply: Coin360
Some would conclude that the surge to $7,738 is essential because it lessens the chance 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 Worry & Greed Index reveals traders stay extraordinarily cautious about Bitcoin’s short-term prospects.
Crypto Worry & Greed Index. Supply: Different.me
Whereas the index reveals a marginal improve in crypto market sentiment over the previous month, the present studying at 19 continues to be within the “Excessive Worry” class, not precisely the place one would count on it to be 18 days earlier than halving.
BTC USDT day by day chart. Supply: TradingView
As proven on the day by 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 might be a problem. Even when the worth pushes above $8,000, the VPVR reveals $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 might be prepared to supply help.
After reaching the day by day excessive at $7,738 the worth shortly pulled again $200 however on the time of writing the MACD continues to rise above the sign line and histogram reveals a continued improve in momentum on the 4-hour and day by 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 presumably anticipate that both the worth will consolidate within the present vary or pullback to retest the previous resistance ranges.
In the meanwhile, merchants ought to watch quantity to see if a construct up in purchase quantity gives the sign that the worth will try to assault the 61.Eight Fib degree at $7,924.
Provided that on the time of writing, Bitcoin seems to be dropping a number of the momentum which pushed it to $7,700 earlier right now, merchants may additionally search for the worth to retest earlier ranges of resistance within the $7,450-$7,300 vary.
The views and opinions expressed listed here are solely these of the author and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer entails threat. You need to conduct your personal analysis when making a call.