Bitcoin Pumps to $11,900, Finally Breaks Out
For a while now, most Bitcoin (BTC) traders actively expect bloody Mondays. Mondays are, of course, objectively the worse day of the week, and the day that Wall Street opens up shop, presumably to take profits from the weekend’s price action.
This time, however, blood did not grace the cryptocurrency streets on Monday. On the contrary actually. A few hours back, Bitcoin shot higher, moving past $11,900 for the first time in a number of days.
This strong surge upwards, which didn’t occur prior to the close of the weekly candle and CME weekend open as Bitcoin has done, comes after days of lower highs and higher lows, suggesting that this small yet important spike is a breakout.
Due to this move, which caught many traders with their pants down due to expectations of further consolidation, over $44 million worth of shorts on BitMEX were liquidated. Youch. Presumably, many traders were short $11,000 on high leverage, resulting in mass liquidations when BTC spiked on Monday morning.
While around $50 million is evidently no small sum, this liquidation event wasn’t the end all and be all of liquidation events. On the days that BTC was pumping 10% to 20% within a day’s time, BitMEX saw hundreds of millions of dollars worth of liquidations, as bears were caught off guard.
So, what exactly is next?
Well, according to analysts, a bullish confirmation would be Bitcoin closing a key short-term candle, like the four-hour or 12-hour, above the $11,700 range.
Dave The Wave believes that if BTC closes above $11,600 on the daily, the asset could continue its parabolic rise. Such a move would mark the cryptocurrency breaking past a declining trend line that has acted as resistance since last month’s blow-off top at $13,800.
Should the parabolic rise continue, Bitcoin could hit $14,000 by the middle of July, which is just over a mere week away.
Considering that this surge took place within a matter of a few minutes, implying manipulation by whales, this market could retrace these gains. Thus, investors may need to stay on their toes for the time being.
Some have been a tad more optimistic though. Analyst Nunya Bizniz that this breakout was actually a move above the neckline of an inverse head and shoulders, implying that there is more upside to be had. In fact, Bizniz writes that he has a target of $14,000, meaning more than 15% higher than current levels.
Photo by André François McKenzie on Unsplash