Bitcoin bears failed at minus three times in the past two months to settle below $ 30,000. As price closed (UTC) below key support earlier this week, Wednesday's jump to $ 32,000 canceled the bearish blackout. Bitcoin triple bottom plus Source: QCP Capital, TradingView
The persistent defense of the $ 30,000 mark took the form of a so-called triple bottom pattern on the daily chart, which ws a The 50 day simple moving average (SMA) at $ 34,500 may offer immediate resistance. According to Katie Stockton, Founder and Managing Partner of Fairlead Strategies, a break above the 50-day SMA would target the 200-day SMA near $ 44,000.
Patrick Heusser , head of trading at Crypto Finance, also pointed out $ 35,000 as a critical level. "The backlog flow looks good, but there are a lot of stale sales orders coming into the $ 35,000 area, which still need to be cleared," Heusser said.
Finally, market participants who have gone“ short gamma ”by selling call options - or insurance against bullish moves - at or above $ 35,000 in recent weeks may resort to hedging, i.e. buying cash or futures if prices exceed $ 35,000.
This, in turn, could strengthen the movementnt bullish, possibly giving a test of $ 40,000 to $ 42,000, as predicted by QCP Capital. To be short gamma means to be an options writer (seller), whether the option is a call or a put. Traders usually sell options when they expect the underlying asset to experience low volatility consolidation.
Bitcoin is currently traded at nearly $ 31,800, down 1% on the day, according to 20.
The cryptocurrency rose from $ 29,800 to over $ 32,000 yesterday on a series of bullish news. The day ended with tech entrepreneur and provocative Elon Musk declaring that his aerospace company, SpaceX, held bitcoin. Musk also stated that he owned bitcoin, ether and dogecoin , and added that Tesla could relist bitcoin as a payment alternative.
Read also: Elon Musk says SpaceX is hosting Bitcoin at 'B Word '