Connect with us

Bitcoin

Bitcoin Explodes Past $15,000 as Analysts Expect Further Upside

Published

on



  • If it isn’t already clear, Bitcoin is caught in the throes of a full-fledged bull market as its price rallies towards $15,000
  • This move came about in the form of a parabolic advance overnight, with buyers overwhelming sellers once again
  • The cryptocurrency is showing few signs of weakness as it continues flashing immense signs of strength
  • Where it trends in the near-term will likely depend on its continued reaction to $15,000
  • Traders are noting that the next key resistance level sits around $15,700, and a break above here could send it up to all-time highs

Bitcoin is beginning to flash some signs of immense strength as buyers propel it up towards $15,000.

This is the highest price the cryptocurrency has seen since its 2017 highs of $20,000, and bulls are now just a stone’s throw away from breaking above this level.

Where the market trends in the near-term may depend largely on its continued reaction to $15,000 as well as the strong selling pressure that sits at $15,700.

Buyers are in full control of the market, and there’s a strong likelihood that further upside could come about in the days and weeks ahead.

Bitcoin Rockets to $15,000 as Analysts Eye Further Upside 

At the time of writing, Bitcoin is trading up 5% at its current price of $14,850. This is around the price at which it has been trading throughout the past few days.

The selling pressure at $15,000 did slow its ascent, but it has yet to spark any sharp or sustainable selloff.

Where it trends in the near-term will likely depend mostly on whether or not bulls can break above this level or if it will enter another consolidation phase.

Analyst: Move Towards $15,700 Likely as Resistance Mounts 

While sharing his thoughts on where the cryptocurrency might trend in the near-term, one analyst explained that a move to $15,700 is likely due to the resistance that sits here.

He noted that a monthly close above $16,000 would be ultra-bullish.

“BTC HTF Analysis: Look how clean that current monthly candle is looking, I know we are only a few days in but the clean wick below and consistent buying pressure is super impressive. Next resistance level is around $15,700, a monthly close above $16,000 would be insane to see.”

Image Courtesy of Cactus. Source: BTCUSD on TradingView.

The coming few days should provide investors with serious insights into where Bitcoin and the rest of the crypto market will trend throughout 2020.

Featured image from Unsplash.
Charts from TradingView.



Source link

Bitcoin

Bad call? Bitfinex bears closed a block of Bitcoin shorts before the drop below $32K

Published

on

By


Bitcoin price is still in a rut, trading near $33,000 and trapped in a downtrend that just seems to get worse with the passing of each day. As the price slumps, analysts have consulted with several technical and on-chain metrics to explain the price collapse, but none of these have picked up on the exact reason. 

One area of interest has been the sharp rise in short positions at Bitfinex in the past week. Traders are placing exaggerated importance on these Bitcoin (BTC) margin shorts as if they are predictors of the current market crash. Still, as Cointelegraph previously reported, analysts forget that Bitcoin margin longs are usually much larger.

On June 18, longs outnumbered Bitfinex shorts by at least 22,800 BTC, but 87% of the short positions were closed before June 22. Currently, margin longs are 43,850 BTC higher than the amount shorted.

While those shorts are usually savvy traders, it is unlikely that they knew in advance that Chinese banks would prevent their clients from engaging in activities involving crypto trading or mining.

More importantly, these bearish positions were built while MicroStrategy was buying $500 million in Bitcoin after a successful senior secured note private offer. To make things worse, Michael Saylor’s business intelligence firm announced the intention to raise another $1 billion by selling stocks to buy Bitcoin.

Let’s take a look at how these courageous shorts fared.

Bitfinex margin shorts (blue) vs. Bitcoin price in USD (orange). Source: TradingView

On June 6, shorts increased from 1,380 to 6,700 at an average price of $36,150. Three days later, another 12,180 shorts were added when Bitcoin was trading at $37,050. Lastly, between June 14 and 15, shorts increased 6,000 to a 25,000 peak while Bitcoin averaged $40,100.

By looking at the Bitcoin prices when those short position increases took place, it is reasonable to assume that the 23,500 contract increase (green circles) had an average price of $37,625.

Related: Traders search for bearish signals after Bitcoin futures enter backwardation

Traders closed positions before BTC crashed bel$32,000

These short positions were steadily closed over the past three days when Bitcoin was already trading below $37,000. However, 17,000 short contracts had already been closed by the time the price plunged below $33,500. Therefore, it is implausible that the average price was below $34,500.

No one would complain about gaining 8%, shorting the market to generate a $73 million profit. However, it is essential to note that on June 16, when Bitcoin reached $40,400, these shorts were underwater by $65 million.

This analysis shows how even highly professional traders can go deep underwater. There’s no way to know if this trade would have been profitable had the crackdown on China not aggravated Bitcoin price or if MicroStrategy managed to raise the $1 billion before the price drop.

If anyone still believes in market manipulation, at least there’s comfort in knowing that pro traders can face drastic losses as well. However, unlike us mortals, whales have deep pockets and patience to withhold even the most rigorous thunderstorms.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.