The Bitcoin price rose with volatility for the past 48 hours and that put a lot of traders in panic. As anxiety of missing the bottom prevails over people, we will be looking at what the real data shows.
Is this move a confirmed pump or a short squeeze. Have we missed better entries? The charts are here to tell us.
BITCOIN
After a price tightening for BTC we have seen a sore in the price. BTC reached $30 000 for the first time since the mid days of August.
The price went above the parallel channel since being rejected over 3 times in the last 30 days. This was visible in the previous analysis.
This parallel channel has been indicated on May 18th and since then has been followed with precision. The downwards channel is a bullish one and the price tends to go above it. It was crucial to support the $25 000 and since then we have seen volatile days.
The sharp move up was not expected to wipe out important higher levels but it did. The pump was caused by fundamental news and a short squeeze. In retrospective, in the past days we saw record-high for the year long liquidations and on June 20th we saw over $218 million of short positions getting liquidated. What does that mean?
Market makers managed to wipe out the bulls on the move down and now essentially liquidating the bears too. This just goes to show you how having access to data is important and opens your eyes on what has been going on. News managed to drive the price lower so the big players can buy cheaper.
Looking to see BTC consolidate between $30 500 – $29 800 before any move to either side. Again, we are witnessing a short squeeze and retracements tend to follow. The selling pressure that was looming above the price has been reduced to being only between $30 800 – $32 000.
The Dollar Index
The Dollar is having a bad month in June with the currency’s price slowly going down. In previous analyses it was stated that this lack of correlation between the downtrending BTC and bleeding Dollar will have to pick up in time.
It seems that this has now happened and we are seeing the play out of the Dollar being weakened. It is crucial for the DXY to support from current levels otherwise lower levels are expected.
SOLANA
SOL and all altcoins did not manage to catch up with BTC on the pump. This was caused by the already high and growing BTC Dominance. When the Dominance is high it is difficult to see any altcoins move with significance.
This was also stated in previous analyses that on a move up we will see trailing in the altcoins. SOL has reached the First Resistance area between $17 40 – $17 80.
An ideal entry for SOL would be between $15.80 – $15.30. It is healthy to see BTC go up but on its move down other currencies will bleed more because of the high dominance. That is why an altcoin season is still away before seeing the dominance go down.
Lower levels for altcoins including SOL are expected than current ones.
