Like Stockholm Syndrome, where prisoners develop a psychological bond with their captors, crypto winters have a way of wearing down even the most bullish supporters of cryptocurrency in no time.
This reality was fully demonstrated on July 19, after a bitcoin (BTC) rally above $23,000 was announced with widespread warnings that this move was only a simulation before the market took off.
Not bad. But keep in mind that this can still be turned into a classic fake.
My general thesis remains, the market will rally pic.twitter.com/VxnH4mo6hW
— Jimie (@Your_NLP_Coach) July 19, 2022
$BTC. Not bad. But keep in mind that this can still turn into a fake classic. My general thesis, a bear market rally has not changed pic.twitter.com/VxnH4mo6hW. — Jimie (@Your_NLP_Coach) July 19, 2022.
While the possibility of new lows being set in the future cannot be ruled out, here’s a look at what analysts think about how this BTC breakout could differ from most ‘investors expect it.
This time ‘it’s different’
The message “this time it’s different” was offered by the Twitter handle Trader XM, which published the following chart explaining why BTC is about to rise.
As the chart above shows, BTC price has not retested the low of the range, although there have been four retracements of the high of the range, and this indicates that the buyers are now stronger than the sellers.
In response to XM Trader’s post, Twitter user Justinape responded “Looks like $27,000-28,000 soon.”
There is an XM trader answered,
“Okay mate, we go to $27-28k, then consolidation months. Let’s enjoy this movement before the long winter.”
The next major resistance is located at $27,100
The firm posted data on the Whalemap chain, which has published The following chart shows the lack of buying demand between $23,000 and $27,000.
“The first resistance on our way up should be $27,100. There is a large gap in supply between current prices and $27,000. »
Also read: Bitcoin Price Nears $24,000, Traders Expect Further Gains, After Retesting Support
Shorts become REKT
Evidence that cryptographic traders have been put in far too great is a view provided by cryptocurrency analyst Dylan LeClair, who published The following chart shows the effect bitcoin’s move above $23,000 had on futures traders.
As the chart shows, a large number of bitcoin short positions were opened between June 15 and July 15, and these traders are now on the losing side.
As LeClair points out,
“Thousands of exposed BTC are underwater right now.”
While the possibility of a trend reversal and more bearish bitcoin is still on the cards, the current momentum suggests more upside in the near term.
The global capitalization of the cryptocurrency market now stands at $1,055 billion and the dominance rate of bitcoin is 42.1%.
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