Deja Vu! Bitcoin [BTC] Flash Rise by 7% Begins to Haunt Short Players


Bitcoin [BTC] logs a 7% increase in the last four hours of April 1, 2020, with the price shooting to highs at $671x.

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The surge caused short order liquidations to the tune of $27 million on BitMex in the last six hours. Anthony Elia, Co-Founder of the digital asset management firm, FinanceDA, tweeted,

Only a year back, Bitcoin began a series of short-squeezes as it turns from bearish sentiments to a completely bullish trend. After the 18.45% rise on 2nd April 2019 from $4100 to highs at $5000, the second bullish consolidation leg began on Bitcoin.

The rise at the point of time coupled with bearish sentiments post the coronavirus dump seems analogous. Currently, BTC price needs to successfully break above its range and resistances to completely replicate the move.

btcusd daily chart
BTC/USD 1-Day Chart on Bitstamp (2019) (TradingView)

Resistances left to Conquer

There is still resistance from the range highs at $6,800-7,000, and from the 200-Day Moving Average around $8190. Moreover, it seems to be forming an ascending triangle with a series of higher lows indicating bullish consolidation. A break-out successful break-out would target $8,700s.

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Trading analyst, Josh Rager, tweeted on his trading plan,

From support straight into resistance I’m holding off making the next move until we can see follow up through this level, otherwise, it’s just going to break down here

Needs to hold $6600s

btcusd chart from a year
BTC/USD 1-Day Chart on Bitstamp (TradingView)

Moreover, the pump last night was not correlated to the stock markets which opened with a bearish gap and closed red (down 4.7%). Nevertheless, it might still be too early to confirm de-coupling from SPX, Josh Rager added,

Not 1.0 correlation, closer to 0.43 – so still see some influence on $BTC

The current macro environment projects uncertainty due to the economic effect of Coronavirus. However, in case it turns out to be a recession, the prices of all assets are likely to be hit further.

Do you think Bitcoin price will from resistance or the bullish action continue? Please share your views with us. 

Summary

Deja Vu! Bitcoin [BTC] Flash Rise by 7% Begins to Haunt Short Players

Article Name

Deja Vu! Bitcoin [BTC] Flash Rise by 7% Begins to Haunt Short Players

Description

Bitcoin [BTC] logs a 7% increase in the last four hours of April 1, 2020, with the price shooting to highs at $671x.

Author

Nivesh Rustgi

Publisher Name

CoinGape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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