Much like Stockholm syndrome where captives create a mental bond using their captors, crypto winters have a means of flipping the most bullish cryptocurrency supporters bearish inside a short time.
Proof of this reality was on full visible on This summer 19 following the recovery of Bitcoin (BTC) back above $23,000 was met with prevalent warnings the move was just a fakeout prior to the market heads for brand new lows
Pretty good. But bear in mind this still turns into a fake out.
My general thesis still remains, bear market rally pic.twitter.com/VxnH4mo6hW
— Jimie (@Your_NLP_Coach) This summer 19, 2022
While the potential of new lows being set later on can’t be eliminated, here’s a glance at analysts’ opinions about how this BTC breakout might be diverse from most investors expect.
This time around “it’s different”
The pointed message of “this time is different” was provided by pseudonymous Twitter user Trader XM, who published the next chart outlining why BTC is poised to mind greater.
As highlighted around the chart above, BTC cost didn’t retest from the range low even while four retests from the range high required place, which shows that buyers are actually more powerful than sellers.
As a result of the publish from Trader XM, Twitter user Justiinape responded “$27K-$28K appears imminent.”
Trader XM stated,
“Agree my man, proceed to $27-28K then several weeks of consolidation. Let us love this particular move prior to the lengthy hibernation.”
The following major resistance reaches $27,100
Further evidence that BTC could mind greater was provided through the on-chain data firm Whalemap, which published the next chart highlighting the possible lack of buying demand between $23,000 and $27,000.
“$27,100 ought to be the first resistance on the in place. Big gap in supply between current prices and $27K.”
Shorts get REKT
Proof that crypto traders have been lulled into an excessively bearish outlook was supplied by cryptocurrency analyst Dylan LeClair, who published the next chart showing the result that Bitcoin’s move above $23,000 had around the futures traders.
As highlighted around the chart, there is a lot of Bitcoin short positions opened up between June 15 and This summer 15 which traders now end up around the losing side from the trade.
“Tens of thousands price of BTC short open interest presently underwater.”
While Bitcoin reversing course and heading lower once more remains possible, the present momentum suggests further upside for the short term.
The general cryptocurrency market cap now is $1.055 trillion and Bitcoin’s dominance rates are 42.1%.
The views and opinions expressed listed here are exclusively individuals from the author and don’t always reflect the views of Cointelegraph.com. Every investment and buying and selling move involves risk, you need to conduct your personal research when making the decision.