Bitcoin – and the rest of crypto – has been recovering from a violent uptrend that brought the coin from a 1,000 dollars to a whopping all-time high (ATH) of almost 20,000 dollars in under a year. This is XRPworld, but it is nearly impossible to ignore Bitcoin as it is well known that most coins move to the beat of BTC for the time being.
If you follow the sentiment on Reddit, Twitter and even darker forums like /biz/ on 4chan, you will find that most people see Bitcoin going three different paths. Either:
- Bitcoin seeks a new bottom below February’s $6000 followed by a bounce to an ATH.
- BTC will soon rise to an ATH.
- BTC runs straight into the ground.
The first two options are far more realistic. While nobody can predict whether any asset will hold its value tomorrow morning, it is safe to say that Bitcoin is not dying anytime soon – not even next year or the year after that. Bitcoin kicked off the blockchain revolution and it is very resilient technology despite all the issues associated with it and all the doom & gloom calls that Bitcoin is a bubble. The crypto crowd is better off living in harmony because a lot of coins – at least XRP and Bitcoin – are here to stay for years to come.
Bitcoin tower of shorts at all-time high: Monster short squeeze coming?
Ever since the beginning of 2018 bears have been shorting Bitcoin like it’s going to the ground. The short selling has accelerated to a point where the chart for BTCUSDSHORTS has formed an ascending wedge that turned parabolic. BTCUSDSHORTS has been reaching all-time highs for almost a week straight, with RSI and Stochastic RSI both currently overbought. (See graph below)
While many day traders continue to short Bitcoin at every chance they get, Bitcoin’s price has remained relatively stable in the past days. All signs point to a possible short squeeze in the short term. A significant price jump might liquidate enough short positions to create a cascade of liquidation that could send the price soaring upward. Bears beware.
Odd price movement on BTC
BTC has been moving in very tight ranges for the past days, pumping and dumping into more tight ranges. While volatility for Bitcoin usually ranges in the hundreds of dollars, the charts have been oddly moving in very tight ranges of no more than roughly fifty dollars per level (see image below).
We are still long on Bitcoin and XRP and expect positive price movement in the weeks to come.
UPDATE (April 12 2018): SHORTS REKT
Told you so. The short squeeze is happening right now. Bitcoin jumped over $1,000 in a very short period of time, liquidating shorts and boosting the price to a local high of just over $8,000.
Crypto enthusiast, writer and editor.