Like the Stockholm Syndrome, where captives develop a psychological bond with their captors, cryptocurrency winters can turn even the most optimistic cryptocurrency supporters into a bearish position in a short period of time.
Evidence of this reality was fully on display on July 19 after Bitcoin (BTC)’s recovery back above $23,000 was met with widespread warnings that the move was just a fake before the market heads to new lows.
Not bad. But be aware that it can still turn into a classic fake.
My general thesis remains the same: a bear market rally. pic.twitter.com/VxnH4mo6hW
— Jimi (@Your_NLP_Coach) July 19, 2022
While the possibility of setting new lows in the future cannot be ruled out, here are analysts’ views on how this BTC breakout could differ from most investors’ expectations.
This time “everything is different”
The poignant message “this time is different” was offered by a Twitter user under the pseudonym Trader XM, who published The following chart shows why BTC is poised to move higher.
As shown in the chart above, BTC price has not tested the low of the range even after four retests of the high of the range, which suggests that buyers are now stronger than sellers.
In response to Trader XM’s post, Twitter user Justiinape responded, “$27K-$28K seems inevitable.”
Trader XM said,
“Agree, my friend, go to 27-28 thousand dollars, and then to months of consolidation. Let’s enjoy this move before a long hibernation.”
The next major resistance is at $27,100.
Further evidence that BTC could rise has been provided by online data firm Whalemap, which published The following chart shows no buying demand in the $23,000 to $27,000 range.
“$27,100 should be the first resistance on our way up. Big gap in supply between current prices and $27,000.”
Bitcoin Price Closes To $24k And Traders Expect Further Rise After Retesting Support
Shorts get REKT
Evidence that crypto traders were prone to being overly bearish was provided by cryptocurrency analyst Dylan LeClair, who published The following chart shows how futures traders were affected by Bitcoin’s move above $23,000.
As shown in the chart, between June 15 and July 15, a large number of Bitcoin short positions were opened, and these traders are now on the losing side of the trade.
“Shorts for tens of thousands of BTC are currently hidden.”
While bitcoin reverses course and moves down again, the opportunity remains, the current momentum suggests further growth in the short term.
The total market capitalization of the cryptocurrency is currently $1.055 trillion, and the Bitcoin dominance rate is 42.1%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cryptooshala.com. Every investment and trading step involves risk, you should do your own research when making a decision.
Credit : cointelegraph.com