Are you one of those people who constantly keep a check on the ups and downs of the crypto market? Well, let us inform you that traders believe that it is a matter of a few hundred dollars that could separate BTC price action from a “short squeeze.”
If you keep a check on the data of the crypto market, you will know that Bitcoin returned to $20,000 on Sept 2 amid the renewed bets on a “short squeeze.” So are you curious to learn more about all these details? Well, we have summed up all the significant info regarding the current condition of the crypto market over here. Let us take a look!
All Eyes On $20,700 Short Squeeze Trigger: Let’s Get An Overview
According to the Cointelegraph Markets Pro and Trading View data, we could see BTC/USD recovering from another dip. Well, this is below the $20,000 mark. In addition, the pair also gave little insight into which direction the next breakout could be. However, there were differing opinions regarding it.
Moreover, amid the downside pressure on risk assets and a strong United States dollar, the overall consensus appeared to favor long-term weakness. In fact, for a popular trader like II Capo of Crypto, there was still reason to believe that a relief bounce could enter first.
This is mainly the result of the majority of the market expecting immediate losses to continue a “squeeze” of short positions could hit. In fact, this pushed spot prices out of their multi-day trading range to target as much as $23,000. Even though Bitcoin has presently circled $20,100 at the time of writing, it still needs the effort to enter the launch zone for the short squeeze.
Crypto Market Cap Offers Bear Market Hope
Well, we have a piece of good news for traders and others who are interested in the crypto market. In his latest YouTube update, Van de Poppe told market participants to pay less attention to the Bitcoin chart and instead focus on the overall cryptocurrency market cap.
This is because BTC/USD acting below the 200-week and moving average for an extended period were “not unwarranted” for sentiment to favor further losses. He added, “more importantly, watching the total market cap chart makes more sense, as that one grants more information on this.”
Needless to say, Van de Poppe has also forecasted a potential retest of the 200 MA where a clearer bottom signal would have been printed “while most of the people are anticipating a crash towards $12,000.
Ending Note
So as we conclude, we can say that the crypto market is constantly subjected to several ups and downs. Therefore, to receive all the updates, you must be cautious and frequently check the data. This will ensure that your investments are safe and secure.
Also read: 62% Of The Traders Did Not Sell Bitcoin For An Year
