Bitcoin was able to score some profits over today’s trading session as the market slightly rebounded after a spike in selling pressure. The largest cryptocurrency traded in red, negatively impacting the market sentiment.
Bitcoin (BTC), which trades at $20,000.300, has a profit of 1% over the last 24hrs and a loss of 6% over the week. In the crypto top ten by market cap, BTC stands as one of the best performers only surpass by ETH’s price by 4% over the same period.
According to the analyst Michaël van de Poppe, as Bitcoin moves back into the $20,000 region, the price could attempt to break about key resistance at $22,000. This wall could be broken by bulls, allowing the cryptocurrency to attempt higher levels.
Below is a chart showing that Bitcoin might climb up to the top in a June 2022-formed trend. That would place $29,000.500 at the top of the trend, which is a key level between bulls. As the analyst shared below, he said:
Bitcoin still has a chance of happening. The trigger is a reclaim at $19K for me, but we’ll have to see whether this stands. Market capitalization exceeds 200-Week MA. This usually means that support grants are granted and an HL can be confirmed.
Bitcoin is still heavily affected by three factors: the U.S. Federal Reserve (Fed), the strength in the U.S. dollar, and the upcoming Ethereum “Merge”. First, the Fed Chair Jerome Powell suggested an aggressive strategy to fight inflation.
The crypto market crashed due to the U.S. dollar contributing to the increase in selling pressure. Although the currency has rallied strongly since August, it could have reached its peak when it came under attack from 110 resistance. Bitcoin could be able to take some comfort from this rejection.
Bitcoin Performance Lags As Shorts Add Up
Further data provided by a pseudonym analyst claims the market’s reaction to the Fed announcements triggered a spike in the number of open short positions. As traders perceive potential for further upside, these positions might be “short squeeze” as the largest cryptocurrencies touch support levels.
The market could see volatility if there are enough shorts liquidated. Analysts believe crypto is oversold and hint at rising levels. As critical resistance, $22,000 to $25,000 is most likely to continue. According to the analyst:
The whole derivatives market is currently aggressively short-positioned. Every futures contract and perpetual swap in backwardation (…). Although the timeframe is longer, I believe that it’s still a fucked market. However, short-term TF and mid-TF are my preferred options. We will probably move slightly higher.