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Bitcoin Burning Shorts!

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Bitcoin bullishness seems to grow, after crossing the strong $10,000 barrier. Yesterday was playing in the $11,000 range and today it seems the range of the day will be $12,000.

Chart 1 – Bitcoin 4H Chart

Bullishness is very strong, but part of it may be due to short position coverage, as published by chepicap.com. According to them, a total of 142 million have been liquidated just in BitMex short positions. They also say that Bitmex still holds 29,000 shorts versus 27,000 longs. We could assume that could be happening on other major exchanges and also in Forex brokerages as well.

That means these shorts will be more fuel to the fire after a $13,000 level breakout.

Chart 2 – Bitcoin 1H chart

Right now, the 1H chart shows that the current range may be these two horizontal lines: 12,150 and 12,950. A break of one of these two may trigger buys or sells.

In view of the bullishness of this asset, novice traders please abstain from doing crazy trades on leverage.

This weekly chart will help us with BTC’s key levels in its path towards $20,000. These are levels where the price has a memory of a bounce, are 12,940 (proxy to $13,000), 14,200, 16,200, 17,200, and 18,400. Of course, also the top $20,000 will be a strong psychological level.

As we have said in other occasions, this is a strong bullish trend, therefore, the trend is your friend: Buy at dips (using 1H charts is a good idea in such a moving market!)

 

 

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