Over the past few days, the price of Bitcoin has plunged lower after a multi-week strong rally to $ 7,470, up 100% from the bottom of Dark Thursday to $ 3,700. As of the time of writing, BTC is trading at $ 6,861, about 9% lower than the aforementioned high.
However, a prominent cryptocurrency fund manager is expecting Bitcoin to "explode" soon.
Bitcoin How soon will price increase?
On April 10, Mohit Sorout - partner of cryptocurrency speculation fund Bitazu Capital - commented that "Bitcoin will soon explode" and shared two charts.
- Mohit Sorout 📈 (@singhsoro) April 11, 2020
Although it was unclear exactly what he meant with these charts and the accompanying message, Sorout later revealed that Bitcoin would short squeeze, causing leveraged short positions to be quickly pushed out of delivery. translate to create a stronger price move.
Specifically, the charts indicate that once Bitcoin returns to the range of $ 7,050-7,100, it is likely that there will be a series of closed trades, pushing the cryptocurrency to a weekly high of $ 7,400, even. higher.
This conclusion is drawn from the chart that Bitazu's partner has shared above. Accordingly, at $ 7,050-7,100 and $ 7,300 there are liquidation price clusters for the short position of BitMEX, which will cause Bitcoin to be purchased if achieved.
While Sorout's expectation for Bitcoin to "explode" is based on investors pushing prices above the above range, it's clear that the pressure is also rising. Reports show that buyers are starting to participate in the cryptocurrency market.
First, there was an increase in buying volume with 2 altcoins XTZ and LINK, up 13% and 31% respectively over the past week. As a result, there is a growing demand for cryptocurrencies as a whole asset class.
Second, Su Zhu of cryptocurrency and foreign exchange fund Three Arbow Capital observed a large buy-wall ETH on Bitfinex on April 10, in which buyers offered a bid of 250,000 ETH between $ 159 and $ 162. la, with a fee of approximately 40 million US dollars.
- Su Zhu (@zhusu) April 10, 2020
“Buy a big ETH wall on BFX here, 200K ETH be filled and the remaining 50K in the book Comeinand"
In addition, Bitfinex data indicates that traders are starting to accumulate long positions with fast speed.
And finally, much evidence such as web traffic measured by Alexa, chat stories from friends, family, and order book data indicate that the demand for Bitcoin is starting to increase.
All of this confirms Sorout's belief that Bitcoin is ready to explode.
This year's Easter celebration (April 12, 2020) is probably unique in the memory of Westerners, because activities such as church services and family gatherings will not be held. . With high vigilance due to COVID19, social spacing has proven itself to be the most effective method to curb the spread of viruses. In regards to cryptocurrency trading, Bitcoin trading volume has witnessed the usual slump in a big weekend holiday. Such reductions also occur during Christmas and New Year holidays. The 7-day Bitcoin trading volume chart continues to provide evidence for the decrease rule this weekend.
BTC trading volume for 7 days | Source: Bitcoinity.org
After falling from the $ 7,000 zone, Bitcoin appears to be set to retest the previous support zones at 6,600, 6,500, 6,200, 6,050 and possibly $ 5,800. These levels have provided reliable support for Bitcoin since the price crash in mid-March.
6-hour chart of BTC / USDT | Source: Tradingview.com
Looking at the 6-hour BTC / USDT chart, we will get the following:
- The zone of $ 6,600 provides solid support for Bitcoin before a weekly close today.
- $ 6,900 is providing short-term resistance.
- The current price of BTC is higher than the MA 100 (yellow) but lower than both the MA 50 (white) and 200 (blue). Therefore, BTC may be more inclined to move sideways for the rest of the day.
- An MFI of 14 indicates oversold conditions.
- MACD signals to reduce selling volume.
Daily time frame chart BTC / USDT | Source: Tradingview.com
When zoomed into the daily chart, a completely different picture of discount appears:
- The previously determined death cross is still valid.
- Trading volume has dropped sharply as mentioned earlier.
- The daily MFI at 77 indicates the overbought scenario and is likely to decline.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZCoin News
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