A closely followed analyst says December will be a bullish month for Bitcoin (BTC). Because, according to the analyst, BTC reflects a setup that he last witnessed exactly three years ago. Meanwhile, with the increase in prices, a short position of $ 29 million exploded!
According to the analyst, Bitcoin is in a similar setup to 2020
cryptokoin.comAs you follow from , Bitcoin made a strong move today, surpassing $38,000. However, it later lost altitude and retreated slightly. Crypto analyst Kevin Svenson says he expects higher levels in December. As a basis for this, the analyst suggests that BTC appears to be mimicking the price action of late 2020, when it consolidated around $14,000 before a major upward move.
The analyst shares two charts that show Bitcoin (BTC)’s latest market structure and relative strength index (RSI) level looks “strikingly similar” to its setup in Q4 2020. Meanwhile, the RSI is a momentum indicator that can signal that a trend will continue. Continuing his explanations, Svenson says,
Bitcoin [Ekim -> Kasım] 2020/2023
Exactly three years ago BTC was sitting in a strikingly similar pattern. The 50 level on the daily RSI was the target before the next rise.
There is a corrective move before the rally!
Looking at the analyst’s charts, it appears that he predicts that Bitcoin will witness another corrective move that will see the daily RSI drop to the 50 level before the next rally begins. Svenson also notes that Bitcoin bulls have historically been bullish in the last month of the year before the halving. The halving, which cuts miners’ rewards in half, will take place in April 2024, according to the schedule. “The holiday season before the halving is almost always a bullish period,” the analyst said. says.
Bitcoin price jumped, shorts exploded!
Bitcoin’s sudden upward price movement during the day cost BTC short positions approximately $30 million. Over 119 million dollars have been liquidated in the cryptocurrency market in the last 24 hours. The vast majority of these liquidations, $73 million, were short positions. According to Coinglass data, Bitcoin short positions took the largest share of the loss with $29 million. The explosion of short positions occurred as BTC broke the $38,000 mark today before retracing its steps.
Bitfinex analysts say one of the key factors behind the recent Bitcoin price increase “involves the expectation of a pause in interest rate hikes by the Fed.” In this context, analysts make the following assessment:
Such a pause is expected to maintain or lower the benchmark overnight interest rate, which is one of the highest rates in U.S. history. This could make risk assets like Bitcoin more attractive to investors looking for higher returns in a lower interest rate environment. While long-term BTC supply remains inactive, lower time frames currently indicate aggressive market participants are chasing the price and buying the market above the important $37,500 level.
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