A couple of months ago I wrote an article entitled “Is Bitcoin Dead Again? Will Resurrect As Always “, to date we can say that Bitcoin has repeated the miracle.
Coming to the graphical situation, bitcoin is in an area where, most likely, those who have played down will have to start closing their positions quickly, thus starting a possible short squeeze. A first glimpse we have already partially taken place under the 43000 area.
In another article of 23 July I reported that the main resistance was in the 46/47000 area, where the 50% Fibonacci of the May highs – July lows also passes, and here we are. A break out of this area will lead to a resumption of the uptrend.
Analyzing the depth of the bitcoin book, you can see two liquidity areas for sale between 46100 and 46400, which if broken could trigger the short squeeze up to the 50000-51400 area.
Another confirmation of the strength of bitcoin is given by the recovery of the dominace against the Altcoins. From the lows of May, BTC has risen by 20%, while the Alt has still lost a couple of percentage points since May.
I also believe that the FOMO effect (fear of missing out) of the buyers who had only dozed off has restarted, and this time it could be much healthier if it happens without the Elon Musk carnivals, in these two months of descent we know that the miniers they continued to accumulate and the institutions to buy.
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This article was originally posted on FX Empire