Bitcoin Analysts Still High On Hopium
To say that Bitcoin (BTC) has been doing well over the past week would be a dramatic understatement. In the past week, BTC has rallied by over $1,500, effectively clearly boosting itself out of a bear market. While the bullish momentum has slowed for the time being, with the cryptocurrency sitting at $7,800 after touching $8,150 on Monday, many analysts are still extremely optimistic.
In a recent tweet, popular trader Moon Overlord suggested that contrary to popular belief, Bitcoin is still trading in a parabolic pattern. If the trend holds, Overlord suggests that if BTC passes $8,200, it could quickly gap to $9,818, but may stop there as a result of historical resistance. The analyst, however, notes that this move is “complete insanity,” hinting that this move may be reaching the point where it could be deemed somewhat inorganic.
Overlord isn’t the first to have postulated that $10,000 is entirely possible in this ongoing move. In a recent tweet, Josh Olszewicz of Brave New Coin suggested that Bitcoin’s one-week chart Ichimoku Cloud, a series of indicators meant to show support, resistance, trends, and momentum, is currently showing that the asset is in clearly bullish territory. He notes if BTC manages to break above the “Kijun” line of the cloud, BTC could move to $10,000.
As Tom Lee of Fundstrat postulates, BTC moving above $10,000 would cause FOMO, potentially on a global scale. He explained in a recent tweet, “My SWAG is $10,000 is price that causes FOMO from those who saw bitcoin as dead forever.”
There is room to rally, believe it or not. As Mati Greenspan, eToro’s senior markets analyst, astutely points out, BTC remains under a key level of resistance. In a recent segment with CoinTelegraph, the crypto-centric trader remarked that Bitcoin is still under the 0.382 Fibonacci Retracement level of $20,000’s peak. As it stands, this key technical level sits at $9,400, meaning that BTC could head there before encountering more resistance.
There could be one thing holding back this rally, however. This thing, is the Bitfinex Bitcoin market. For those who missed the memo, as Bitcoin surged past $7,000 on the weekends, shorts began to lose their shirts. According to a recent analysis by Willy Woo, a prominent researcher, short positions on the two aforementioned platforms were been liquidated left and right during the weekend’s rally, confirming that the surge was a short squeeze, at least in part.
Now, however, shorts have fled. Per Nunya Bizniz, the Bitfinex Open Interest charts reached parity when BTC hit $8,000 on Monday, meaning that the amount of longs and shorts that are open are equal. This implies that the short squeeze is finally over, and that the cryptocurrency market could begin to cool from here.
Title Image Courtesy of Chris Liverani Via Unsplash