Bitcoin (BTC) fell below the USD 33,000 support on July 12 as a familiar cocktail of low volume and rising shorts put price action under pressure.
Shorters do not trigger a Bitcoin route
As last weekBuilding short positions on major exchange Bitfinex cost Bitcoin its reach low and sent it back to its final support zone before retesting $ 30,000.
BTC / USD was down about 2.9% on the day, hovering around the $ 33,000 mark at the time of writing but holding off losses.
They used to be analysts happier on the near-term outlook forecasting an uptrend this week that could have a target of $ 38,000.
“I get to the point that I’m pretty much done with this bandwidth with Bitcoin,” an understandably tired Michaël van de Poppe summarized to Twitter followers.
Trader: get ready for bitcoin “violent pull”
Those looking for more excitement won’t be left out this week even if the shunting behavior continues.
The inspiration this time comes from the well-known trader John Wick, who in Series of tweets on Monday observed a rare signal in Bitcoin that historically requires rapid price movement.
“We have now entered a zone of rolled up volatility indicated by the yellow shading,” he commented alongside a chart describing an event called “squeeze”.
“Violent movement is arriving and is imminent. This tells you it is time to pay attention.
Bruises are not common. The previous two events included a trip from $ 9,100 to recent all-time highs of $ 64,500, along with the subsequent correction to $ 30,000, Wick says.
While the exact time and type of the next squeeze or even its direction remain unknown, Wick is trending upwards.
Both the recent build-up of BTC and the strength of the $ 30,000 support add to his conviction.