- English
- Italiano
- Español
- Français
.jpg?height=93&quality=100)
Bitcoin has certainly reawakened after its range bound price action throughout most of June and July. The move higher was most likely sparked by a mild short squeeze which then turned into an aggressive short squeeze (More than $950 million of crypto shorts were liquidated) after the Amazon rumours from an insider that they would accept Bitcoin in 2022 and were investigating issuing their own coin. Some key technical levels were also breached which probably triggered a couple stops amongst the systematic traders. Then price quickly moved lower after Amazon denied the rumours, but not all gains were erased as Amazon dangled the carrot in front of Crypto enthusiasts stating they will continue exploring cryptocurrencies. Client positioning at Pepperstone skews 70% long 30% short for Bitcoin.
Looking at the chart, we see Bitcoin bounced aggressively off range support around the $30/31k level, slicing right through its 21-day EMA and 50-day SMA as well as key horizontal resistance levels such as $35.7k and $38.2k. Price pushed right up to range resistance around $40.5k, before paring back some gains. The RSI is nearing overbought and emphatically breached the 48 level which was acting to cap previous price rallies. The 21-day EMA looks to be wanting to cross above the 50-day SMA. In terms of targets to pop on your radar, the first upside target would be the range resistance around $40.5/41k and beyond there the 200-day SMA around $45k. On the downside, the 50-day SMA and 21-day EMA could be a point of interest with moves lower bringing range support $30.5/31k back into view.
Related articles
Ready to trade?
It's quick and easy to get started. Apply in minutes with our simple application process.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.