Are we ready for $51k
– Yello ladies and gentlemen
Bitcoin is already trading in the range of $30-40k for a whole month (Accumulation phase) following our plan from 19 May, which we shared with you right after the most significant sell-off in recent history -> check here.
As we update you for more than 9 days already, we still maintain the same bias about Bitcoin . Moreover, with the recent bounce up to the top of our range, we can see the funding rate staying neutral ( ) and increasing open interest ( ). We can also see increasing leverage trading, signalling that retail is starting to trade again with more confidence, which would usually be a sign of being a bit more careful up here. Still, in the general context, it’s also a sign on a higher time frame.
We have been showing you many on-chain data in the past few days, which kept us and made us take the opportunity when the majority was . The latest data shows there is a sharp increase in Long Term Holders position after the overall dump. Accumulation keeps going on. Long Term Holders should be understood as the “smart money”, and they are in buying mood and keep buying the dips again.
On the other hand, there is another sudden spike in BTC short positions on Bitfinex today. BTC is rejected from $41,000, and LTF traders are now opening short positions. So we may see another little pump soon to wipe out the short positions (for liquidity). Let’s see how it goes on the lower time frame. This could be a simple short hedge, but when we see these shorts begin to close, this will create an explosive short squeeze, as we already saw happening once a few days ago.
As you can see in our chart below, we have some immediate overhead around $41-42k. However, based on the current price action of Bitcoin , we believe this resistance will be cleared in the near future, and BTC makes a new higher high.
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