When $BTC got going on its price surge earlier on Friday the resulting short squeeze took out all the short positions. These now liquidated, the price has broken back above its bull trend line. Is $44,000 the next stop?
Excitement and optimism has come back into the crypto market. Bitcoin is having a great day, and the altcoins are making hay on the back of this positive move.
Why the pump?
What could be the reasons for this much appreciated change of fortunes for the crypto market? There are probably various. The outflow from the Grayscale Spot Bitcoin ETF seems to be tapering off. The other ETFs are doing some great business, with around $5 billion being invested into them, short selling needed to be liquidated, and another simple reason is that bitcoin had sold off to the tune of more than 20%, and it was about time for the market to see some green candles again.
Source: Coingecko/TradingView
Bull trend back on
Bitcoin is back above its bullish trend line and the much feared vertiginous dump down to much lower levels has been avoided - at least for now.
This weekend could be critical for the price of $BTC. Not only does the price need to consolidate above the trend line, but $BTC also needs to break through the resistance at $41,800, which would then give the number one cryptocurrency a chance at $44,000, which would be a far cry from the last few days of uncertainty and unease that had permeated the crypto market.
Was the 20% retrace enough?
The question that should be asked now is, whether the fake out below the support at $39,000 was exactly that? The market looks to have fooled many by sending that daily wick down to around $38,500, and is likely to have shaken some out of their long positions.
Perhaps the 20% retrace was enough for now, and the bull market can resume its impetus to the upside. Some might have been expecting a dip of at least 30%, but the market will do whatever it wants to and traders have to adapt to this. That being said, long term investors can just sit tight and ignore all this shorter time noise. Probably comfortable in the knowledge that their money is put to far better use in bitcoin than in the bank.
Bitcoin is destroying the banks
Shame on the likes of Jamie Dimon, CEO of J P Morgan, the largest of the US banks, who is always trying to warn the public off of buying bitcoin with his ignorant and pitiful statements on the subject.
A bitcoin investment puts banks to shame. No other investment in financial history has been as good as this, and to see people in such a position of power trying to stop common people from accessing an asset class that can protect and increase their purchasing power, is to witness an evil act.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
