After buying and selling within the $6,900 to $7,250 vary for greater than 19 days, Bitcoin (BTC) worth 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 robust upside transfer allowed the digital asset to safe the next excessive at $7,738, a worth not seen since earlier than March 13 when the Bitcoin worth 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 essential because it lessens the chance of Bitcoin dropping to latest lows under the $6,900 help.
Whereas true, $8,000 and $8,500 have lengthy been anticipated to current considerable resistance and whereas crypto Twitter could also be uber bullish on Bitcoin, the Crypto Concern & Greed Index exhibits buyers stay extraordinarily cautious about Bitcoin’s short-term prospects.
Crypto Concern & Greed Index. Supply: Various.me
Whereas the index exhibits a marginal improve 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 count on 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 previous analysis, 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 subsequent problem might be discovered on the 61.8% Fibonacci retracement the place the 100 and 200-day transferring averages reside.
The Bollinger Band transferring common can also be smack dab on the 100-MA so its anticipated that flipping $8,000 to help will likely be a problem. Even when the worth pushes above $8,000, the VPVR exhibits $8,500 as one other stage of resistance however one would hope that by the point this stage is reached $8,000 and $7,500 will likely be prepared to offer help.
After reaching the each 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 exhibits a continued improve 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 stage.
Alongside declining quantity, the lengthy higher wicks on the final three candles additionally indicators 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 intervening time, merchants ought to watch quantity to see if a construct up in purchase quantity offers the sign that the worth will try to assault the 61.Eight Fib stage at $7,924.
Provided that on the time of writing, Bitcoin seems to be dropping a few of the momentum which pushed it to $7,700 earlier at present, 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 threat. It’s best to conduct your personal analysis when making a choice.
