End of routine? Traders and analysts are speculating an exit from the $40,000-$46,000 range, a pattern that would seriously put bitcoin (BTC) back on track for a sustainable bullish recovery.
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Bitcoin short squeeze: a drop below $40,000 before a bullish impulse
bitcoin falls below $41,840 on Bitfinex today, January 14, 2022, before rebounding sharply to rise above $43,400. It is trading at $43,201 at the time of writing, and is currently recording a daily gain of 1.23%.
The drop below $42,000 grants trader Pentoshi’s wish for bitcoin’s price to drop below this level, with the lows then constituting a buying opportunity. The next step could then be, according to Pentoshi, the $46,000.
Decentrader analysts reported in their market update of today, that they expect another drop in bitcoin in the range of $30,000 – $40,000.
They nonetheless hint at the possibility of a bitcoin’s next bullish impulse, whose funding rates are gradually becoming more and more negative, a necessary condition for the markets to see a short squeeze. These financing rates remained until a few days ago, “stubbornly flat”.
Two major resistances for the price of bitcoin: a trend reversal at 90,000 BTC
Will bitcoin be able to resume the 50-week exponential moving average as support at the weekly close? This average currently sits in the $44,200-$44,500 area, and is an important resistance for the bulls to break.
Data coming from Whalemap shows the existence of another major resistance zone a little higher above $44,000. The whales have accumulated previously 90,000 BTC to $46,500.
They will “provide some resistance there though,” but regaining that level “will look like a trend reversal,” according to Whalemap.
Will BTC markets’ hopes of an imminent exit from the routine pattern that has been in place for a few weeks come to fruition? Bitcoin price must break through at least two major resistances.
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