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.
Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +61��1800 849 149�� or Contact Us to discuss further.
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