Market makers, having taken a step back, have primed the market for a dramatic move; the announcement of the Bitcoin ETF in the following week could catalyze a wick above the all-time high with just a few outsized orders.
BTC/USD Chart by TradingViewThe technical analysis of the chart reveals a poised asset, with local resistance being tested and support levels holding firm. A glance at the chart indicates that the 50-day moving average is well below the current price, acting as a strong support level, with the 200-day MA tracing an even steeper ascent, further bolstering the bullish setup. The current price hovers near a critical resistance level, and a convincing break above this level could signal the start of a significant rally.
The potential for a short squeeze is high, given the number of open positions betting against . If these shorts start to close en masse — either through traders taking profits or being forced out by stop losses — a massive rally could ensue, pushing prices toward psychological levels of $50,000, $55,000 and $60,000. These round numbers often act as mental barriers for traders and could serve as interim points of resistance; however, once broken, the pathway to higher levels seems clear.
Furthermore, the volume profile suggests that there has been considerable accumulation in the current range, which supports the idea of a strong foundation for upward movement. The Relative Strength Index (RSI) is trending in the neutral zone, indicating that there is room for growth before the asset becomes technically overbought.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
