Aggressive attempts from bears to push Bitcoin (BTC) down below $9,000 ended up in vain. But does this mean a bright future for bulls?
Shorts are losing their steam
Matt David Kaye, managing partner of Blockhead Capital digital assets hedge fund, supposes that the bearish momentum has been shaken off. He reveals that derivatives traders on some markets have yielded little gains from their recent shorts.
So, seller aggression may turn into solid buyer activity. But an influx of volume will be the deciding factor.
Also, two technical analysis indicators are showing that the Bitcoin (BTC) price may be preparing for a brilliant rally. First of all, it is a ‘squeeze’ situation. Mr. Kaye captured this through the analysis of the most recent Bitcoin (BTC) moves.
Futhermore, the Bitcoin (BTC) price may be taking a breather before it breaks out from the channel it has been trading in. If both estimations are confirmed, Bitcoin (BTC) may revisit 2019 highs above $13,000 levels
Don’t expect a cakewalk
Before reaching such inspiring levels, Bitcoin (BTC) may meet some more levels of insane bearish resistance. According to Roundblock Capital CEO Brock Connelly, who posted a comment on a tweet from Mr. Kaye, he foresees a ‘sell wall’ at $10,500.
Moreover, correlation with the stock market swings may have a very controversial influence on the Bitcoin (BTC) price in the mid-term.
As covered by U.Today Crypto News, the overnight Bitcoin (BTC) price drop on June 15th, 2020, confused many traders, both spot and derivatives. Bitcoin (BTC) plummeted to three-week lows below $8,900 on some exchanges.
Su Zhu of Three Arrows Capital outlined that the thin channel between $9,170 and $9,270 is crucial for bulls to hold. Bulls managed to do so, which is giving Bitcoin (BTC) holders hope.