Bitcoin
This Is Where Bitcoin (BTC) Could Hit $72,000
The leadership cryptocurrencyBitcoin (Bitcoin), has been trading between $60,000 and $72,000 for more than two months. Now, optimistic Indicators suggest that BTC could revisit the top of the range after more than a month of trading at its support.
Notably, Bitcoin entered the current range on February 28 in a notable rally before reaching its previous all-time high. As developed, BTC reached new highs at $73,805 on the first deviation from the range in mid-March. Later, another deviation happened on May 1st – this time, downwards.
The first cryptocurrency briefly lost momentum in early April and began a downtrend that ended with the aforementioned deviation. Since then, BTC has traded below the 30-day limit exponential moving average (30-EMA), and Bitcoin Short Sellers dominated a bear market.
If Bitcoin surpasses its 30-EMA, currently at US$63,360, it could reach highs of US$72,000.
BTC/USD daily price chart. Source: TradingView/Finbold
Short Squeeze Alert for Bitcoin (BTC) to $72,000
Interestingly, derivatives data from CoinGlass on May 11 further validates a short-term prediction of $72,000 for Bitcoin.
On that note, the one-month liquidation leverage heatmap shows two significant liquidity pools to the upside due to increased open interest for short positions against BTC during last month’s low.
In particular, the $67,000 and $71,000 are key levels with billions of dollars in short liquidations. If sentiment towards Bitcoin changes, these could become easy targets, potentially triggering two short-squeeze events that would see the price reach $72,000.
This change in sentiment could happen in May, bullish divergences began to emerge for all cryptocurrencies, signaling an entry trend reversal. Recently, Jack Dorsey sent a letter to Block Inc’s (NYSE: SQUARE) shareholders defending Bitcoin.
In conclusion, the popular digital asset could be gearing up for an 18% rally from $61,000 to $72,000. However, trading BTC is an uncertain activity and it is impossible to accurately predict Bitcoin price movements.
Investors should remain cautious and avoid high exposures despite the growing optimism in space as India reopens its offshore market crypto exchanges.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When investing, your capital is at risk