Bitcoin Price: $7660 (23 May 2019 3:08pm)
With Bitcoin sitting at $7660, we are well and truly into the next market cycle for Bitcoin.
It has been an enthusiastic month for the price of cryptocurrency. In this article I will break down some of the key indicators we have seen at Caleb and Brown.
- Bitcoin’s Price has moved into a strong rally, primarily driven by short liquidations.
- I between $7200 and $8300, these are the key levels to watch before we have solid indication of the next trend.
Key points indicating the movement of 10,000+ BTC Shorts
Reviewing the price movements this month, we saw a solid uptrend emerging from $5300, increasing steadily to $6000.
This was further fuelled by a large number of open shorts putting pressure on the buy side, this opened up the market from $6000 to $7200 USD on the 10th of May. From $7200 we saw a dramatic increase to over $8300 USD primarily driven by short covering.
A small correction on the 16th of May saw a massive sell-off of shorts. This indicated that one trader had an open 10,000+ BTC short position which was fuelling the rally prior. This one trader accounted for approximately 37% of the shorts on Bitfinex which appears to have been accumulated since April. We’ve analysed his losses to be in the range of $23M USD for betting against Bitcoin. From this major position close, long volume has since moved greater than shorts.
Following this on May 17th, we saw a rapid sell-off that triggered the price to fall to $6600 before quickly recovering to the $7200 range.
This past week shows that the near term support is at $7200, and short term resistance lies at $8300 which we’ve tested twice. With volatility so high, it’s likely we won’t stay within this support and resistance for long.
Jackson has over five years experience in Cryptocurrency Trading and founded one of the first managed Cryptocurrency Investment Trusts in Australia, Bit By Bit Capital. Jackson currently acts as COO for Caleb and Brown, CIO for Bit By Bit Capital and has featured frequently on Sky News, The Herald Sun, The Australian and other major News outlets as a leading expert on cryptocurrency analysis.
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