Bitcoin (BTC) returned to $ 60,000 on April 10, as long-overdue volatility hit the market in line with analysts’ expectations.
“Being a bear is expensive”
Cointelegraph Markets Pro and TradingView showed a sudden push with which BTC / USD was able to leave the $ 50,000 corridor overnight on Friday.
The move was underway a few weeks ago – a convincing attack on $ 60,000 resistance, the last before everyday highs, had failed before.
Bitcoin is about to be Bitcoin. ⤴️ $ BTC pic.twitter.com/8IY19LdtmB
– Alex Saunders @ (@AlexSaundersAU) 7 April 2021
However, it looks different now, but Bitcoin will pass $ 61,000 before consolidating around $ 60,650 at the moment.
“$ 163,745,606 Bitcoin shorts liquidated within an hour,” said Lex Moskovski, quantum analyst noticed on Twitter as the market turns.
“While Bitcoin is merging into another ATH. It’s expensive to be a bear.”
The picture was indeed a surprising picture for traders who spent weeks in a sideways market, occasionally taking advantage of the lows of more than one week.
The driving force behind the latest rise would still have become clear on Saturday, as would the true extent of its endurance, given the importance of $ 60,000 as a psychological support level.
A striking change was the funding rates in the stock market, which declined significantly in the previous days, reducing the friction reduction to $ 60,000 before the market rose higher.
No hint of a market top
Some have nevertheless called for a more optimistic approach to the market setup this week. Among them was Filbfilb, co-founder of the trading pack Decentrader, which stated that Bitcoin at $ 58,000 technically has a lot in common with Bitcoin at $ 20,000.
“I am still very positive above 58K. Structure same as at 20K IMO; many other market nuances are similar in order and depth as well,” he told his telegram trading channel on Friday.
A day earlier, Philip Swift, co-analyst at Decentrader, had expressed similar trends using the following intersection of two major moving averages to indicate that BTC / USD had to run further.
These were the moving averages of 111 days and 350 days, the latter multiplied by two, collectively known as a Pi cycle.
“My current short-term market outlook for Bitcoin is neutral, so my personal opinion is that there is a good probability that it will not be the top cycle for Bitcoin if the moving averages of Pi Cycle Indicator cross within a few days,” Swift wrote in a market update.
“Other indicators and fundamentals indicate that we are not yet at the end of the market cycle.”
Others agreed, but were slightly more cautious, including statistician Willy Woo, who warned Friday that Bitcoin could complete the first of a “double top” price build.
“Volatility visibly reduces the cycle,” he said summed upadding that once the market capitalization level of $ 1 trillion – which corresponds to a Bitcoin price of around $ 53,600 – once cleared, would again be unlikely.