BTC rebounded because short traders risk being caught in a crossfire | Christopher | Capital | June 2021
Bitcoin rebounds in the range
Before buyers stepped in to buy some cheap bitcoins, BTC/USD fell to $31,000. Due to the local low BTC rising by 18%, the current trading price is higher than 36,300 USD. The bulls have overcome a key price point, which should provide the impetus for a sustained rebound to the upper limit of the range.
On the other hand, if BTC/USD falls below the pivot and fails to rebound to $33,470, then the level of $30,000 will be tested next.
However, open positions and short traders seem to Doubled according to coinaly’s dataZe, draw a somewhat large target on their backs for a severe short squeeze.
All in all, the market structure still shows that the market is a range-bound market, and the relatively low trading volume further confirms this argument.
The level to watch
- Recovering the level of $43,000 (20 EMAs per week) indicates a move to $50,000.
- Rejection of $40,000 (psychological level) indicates a retest of the pivot point.
- A close below $35,800 indicates a test of $33,470.
- Weakness below this level suggests that it will rise to $30,000.
At the same time, as measured by the 7-day exponential moving average, the transfer of bitcoin to the exchange has dropped significantly to the low point before the bull market.
This shows that current market participants are not keen to sell tokens on the open market at these prices. This data describes an increasing number of holdings and shows that weak hands (short-term participants) have largely withdrawn from the market.
The Bulls lead.
See you next time.
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