Days of consolidation below $ 7,800 culminated in an explosive move yesterday, causing Bitcoin to rise from $ 7,700 to $ 9,200 in 12 hours. Bitcoin has seen an initial rejection at $ 8,400, a level of technical importance.
The resilience the cryptocurrency has seen so far suggests that the bears have been pushed out of their positions and continue to stay out of their positions.
Bitcoin is becoming a buyer's market
According to data from Skew.com, which tracks the markets for crypto derivatives, this controlled rally liquidated just over $ 40 million in short positions on BitMEX. Although it is a large sum of money, the explosive movements in the BTC price have liquidated many millions in the past few weeks.
As BitMEX's data also shows a decline in open interest in BTC derivatives and a number of positive refinancing interest rates have been printed, this would indicate that Bitcoin is becoming a buyer's market, which speaks for its development. A crypto trader explained this constellation quite well because he wrote the following:
Bitcoin's ability to break through levels so quickly has reinforced the appearance of a growing bull run. A crypto trader said the $ 7,800-8,100 zone was "the last call of the bears" due to the following levels of resistance:
- The simple and exponentially moving 200 day averages
- The annual volume weighted average price
- The simple 21-week moving average
- A so-called “order block” (or block of sales orders)
- And the origin of the March 12th and 13th crash that brought BTC to $ 3,700
Above these levels, Bitcoin now has much less overhead resistance to worry about.
These positive technical events occur because bitcoin halving takes place in two weeks. Although analysts have recently questioned the bullish narrative about the halving, the arrival of this event could mean an influx of investors.
