Bitcoin Primed for Short Squeeze as Bulls Challenge $62K Price Barrier

August 22, 2024 09:45 PM AEST | By Team Kalkine Media

Google News:

Bitcoin Primed for Short Squeeze as Bulls Challenge $62K Price Barrier — Image source: Shutterstock

Recent News

Groupon Bull Pushes Back on Short-Seller Report, Calls Claims “Sensati...

Hims & Hers stock falls after Lilly rules out partnership

US Commerce Secretary Lutnick says China trade talks going well

TTC Global Appoints Katrina McNicholl as General Manager – Southern Re...

Bitcoin (BTC) recently experienced significant volatility, with price action on August 22 highlighting key resistance and support levels. The cryptocurrency’s price fluctuated between $59,500 and $61,000, driven by recent U.S. employment data revisions and Federal Reserve minutes.

Over the past 24 hours, Bitcoin (BTC) BTC/USD exhibited a narrow trading range. Initial gains, fueled by favorable U.S. employment data, were short-lived. A dip to $59,500 resulted in the liquidation of long positions before a rebound to $61,000. CoinGlass data revealed that total liquidations in the crypto market reached $124 million during this period.

The $62,000 level has emerged as a crucial point of interest, with increased ask liquidity suggesting it may act as a key resistance or support level. Analysis from Crypto Feras highlighted that BTC/USD had tested this level five times in the past two weeks. Repeated testing of a price level can weaken its resistance or support strength, potentially making it easier for the price to breach it.

Despite trading within a constrained range, there are indications that a breakout could be imminent. Vetle Lunde, a senior analyst at K33 Research, noted rising open interest combined with consistently low funding rates. This scenario could lead to a "short squeeze," where market conditions force short positions to cover, pushing prices higher. The average buy-in price for investors holding Bitcoin for up to 155 days acts as a support level in bull markets, with significant price drops below this level observed in August 2023.

Onchain analytics from CryptoQuant also pointed to the $64,000 to $66,000 range as a strong resistance zone. With BTC/USD testing these levels frequently, the potential for a breakout is being closely monitored by market participants. This dynamic underscores the current market's sensitivity to key price thresholds and ongoing developments in Bitcoin’s trading environment.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.