Bitcoin cash (BCH) has been on the ascent for the last few weeks, and on Friday it saw a new all-time high above the $35K mark and the $40K level, prompting a very bullish analyst to warn in a note that the crypto is in the midst of an “explosive” price rally that is “likely to be violent” should the bearish shorts succeed in triggering a price correction.
Bitcoin dipped below $33K today, as shorts surged, and a trader warned that “the pressure is building up” for another “violent” price squeeze. The initial drop in BTC prices yesterday came after the price of Monero surged by over 55% from about $90 to over $130, and a sharp rise in short selling. Today, the acute short squeeze has gripped the market, and the sell-off accelerated as the bears drove BTC prices down to $32K.Bitcoin (BTC) fell back below $33,000 support on July 12 as a familiar cocktail of low volumes and mounting shorts pressured price action.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Shorters fail to spark a Bitcoin rout
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hit local lows of $32,880 on Bitstamp.
Just like last week, a build-up of short positions on major exchange Bitfinex cost Bitcoin its range low, sending it back into its last zone of support before a $30,000 retest.
BTC/USD lost approximately 2.9% on the day, at the time of writing fluctuating around the $33,000 mark but staving off losses.
Earlier, analysts had been more upbeat about the short-term prospects, forecasting an upside bounce this week which could see a target of $38,000.
“I’m getting to the stage that I’m quite done with this range on Bitcoin,” an understandably weary Michaël van de Poppe summarized to Twitter followers.
BTC/USD shorts 1-day candle chart (Bitfinex). Source: TradingView
Trader: Get ready for “violent move” in Bitcoin
Those looking for more excitement are not being left out this week, even as ranging behavior continues.
Related: Countdown to Grayscale’s big BTC unlock: 5 things to watch in Bitcoin this week
The inspiration this time comes courtesy of well-known trader John Wick, who in a series of tweets on Monday eyed a rare signal in Bitcoin which historically demands a snap price move.
“We have now entered a zone of coiled up volatility indicated by the yellow shading,” he commented alongside a chart describing an event called a “squeeze.”
“VIOLENT move incoming & imminent. This tells you its time to start paying attention. It can resolve as a squeeze breakout or fakeout in the coming weeks.”
Squeezes are not an everyday occurrence. The previous two events involved a trip from $9,100 to recent all-time highs at $64,500, along with the subsequent correction to $30,000, Wick says.
While the exact timing and nature of the next squeeze, or even its direction, remain unknown, Wick’s bias is to the upside.
Contributing to his belief are both recent accumulation of BTC and the strength of $30,000 support.
John Wick’s BTC/USD “squeeze” scenarios. Source: John Wick/ Twitter
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