This weekend now has upside potential, with $53,165 the first target to be hunted down by the bulls. Given the price action of the last 3 days, it would now be a surprise to end the weekend below $50,000.
We can't rule out a little intervention from our favorite press office, especially on a Friday evening, but baring any FUD, I'm hoping for one of those crypto weekends where checking your phone is followed by "ooh, that's nice, everything has gone up again." Very optimistic, I know, but we're allowed to dream.
Much like the mountain of call options that are currently cheering the market on. It's been a while since we have found ourselves trading a price where the book is as skewed as it is now.
For those traders who have been selling calls to the bulls, the next week could prove to be a painful, repetitive scramble to cover negative gamma. This has the potential to push the market higher in what could be come a self-fulfilling rally, as shorts are forced to buy more BTC to cover their options exposure every time the price jumps higher.
As always, I could just be overly optimistic, but it's Friday, and we're all long Bitcoin.
And it sounds like a great outcome.
Bitcoin is trading above the 200-day moving average with some overhead resistance at $50,500. Once cleared, there is very little in the way to $57,500 and then potential to see the ATH of $65,000. First, we need to see the support levels hold above $44,000 on daily and more support seen at $42,500 and $41,000, respectively. Bitcoin Dominance continues to slide towards 40%, while ETH is at 20%, with potential to reach 25%. The overall Market Cap has settled above 2tn and was close to 2.3tn this morning, a good indication of inflow to alt coins and supportive products.
Bitcoin continues to chop higher as $50,500 holds for now, with the $49,300 level now a pivot point. A clean break of $50,500 is required to continue the upward move towards the $57-$58,000 target. Support is unchanged at $46,800, $45,300, and $44,000.
Bitcoin is showing bullish signs on the weekly with a strong momentum swing. Nothing is ever certain in cryptocurrencies, but this is as good as it gets on technicals.
As we can see in the weekly chart, Bitcoin has had a similar range to last week but is testing the topside.
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BTC rose another 3% yesterday, currently at $44,600 and tantalizingly close to the 45K resistance/support.
Bitcoin has enjoyed a positive trading session today, with prices up 7% post this morning's news that China had taken some small steps to avoid an immediate default from Evergrande. The addition of liquidity to the banking system may just be a shock absorber for next week's action, or it could be the first shot in a sustained program to assist with Evegrande's woes.