For the first time in almost a month, Bitcoin has crossed the $60,000 mark in a fresh burst of bullish market action. A bout of long overdue volatility hit the market on Apr. 10 in line with analysts’ expectations causing the price to go up.
Being a Bear is Expensive
Data from TradingView showed the existence of a push allowing BTC/USD to exit the $50,000s overnight on Friday. The move did not happen without weeks of waiting though, as the last convincing attack on the $60,000 resistance had failed to materialize before. After the break, the price went on the pas $61,000 before consolidating at $60, 450 at the time of publication.
In a tweet, quant analyst Lex Moskovski, stated that $163,745,606 of Bitcoin shorts had liquidated in an hour.
$163,745,606 of #Bitcoin shorts liquidated in an hour.
While Bitcoin is grinding up to another ATH.
Being a bear is expensive. pic.twitter.com/SNHK9eviU1
— Lex Moskovski (@mskvsk) April 10, 2021
The abrupt market turn was a surprise for traders who had spent weeks in a sideways market, which occasionally dropped marking multi-week lows. The push behind this rise was still not very clear on Saturday, as was its capacity to hold, given the importance of the $60,000 level as a psychological support to capture.
One of the obvious changes that have occurred in the recent days is the decrease in funding rates across exchanges which translated to a reduction in friction at and above $60,000 before the spike as the market rose.
An unclear market top
Some traders had called for an optimistic take on the market setup before this surge. One of them is Filbfilb, the co-founder of trading suite Decentrader who claimed that Bitcoin at $58,000 had a lot of technical similarities with Bitcoin at $20,000.
He said to his subscribers at his Telegram trading channel on Friday that he was still very bullish at $58k as the structure was the same at $20k. There were also other market nuances that were similar in order flow and depth.
On Thursday, another Decentrader analyst, Philip Swift, had voiced similar views, using the upcoming cross of two important moving averages to suggest that BTC/USD had further to go. These are the 111-day and 350-day moving averages, the later multiplied by two, together known as a Pi Cycle.
In a recent market update, Swift wrote that his current near-term market outlook for Bitcoin was neutral-bullish, and that his personal view was that a good possibility existed to show that the market cycle for Bitcoin was not its top when the Pi Cycle Indicator moving averages crossed in a few days’ time.
I'm putting us here in the bull run compared to past cycles (on-chain data supports this).
Double top theory: IMO #Bitcoin is completing the first of the "double tops", and turns out an ascending triangle going sideways is all we get.
Volatility is visibly lower this cycle. pic.twitter.com/7m4n6eF50T
— Willy Woo (@woonomic) April 9, 2021
Willy Woo agreed to these sentiments but was very cautious by warning that Bitcoin could be finishing the first of a double top price construction. In his tweet, he stated that volatility was slightly lower this time and that once cleared, the $1 trillion market cap level would unlikely be broken again.
Image courtesy of pixabay