An overnight jump in the Bitcoin price was experienced yesterday and may not place the asset its track to higher levels this week.
That is due to a weaker weekly open, says a pseudonymous Twitterati. The analyst informed his followers about an early morning Bitcoin move on Monday – a sell-off that pushed the cryptocurrency lower from its Sunday high at $11,716.
He also validated that he would keep sitting on his short positions until BTC/USD prints a confirmed breakout above $11,700.
Later in the day, the analyst gave his pullback setup. He envisioned BTC/USD in an uphill channel, with the pair testing the pattern’s top trendline as a resistance level. The price fell shortly upon trying the same ceiling. That made the analyst predict a sharp pullback.
“I still have the feeling bears want to dump the weekly,” the analyst explained. “If the channel breaks down, I’ll not look for more longs yet.”
He later notified that bears are stopping out the capital going into the long positions. He also said that Bitcoin’s pullback has calmed down due to “spoof buy order,” but the cryptocurrency’s hazards of falling towards or below $11,400 are still intact.
“WEEKLY OPENS USUALLY DON’T LIE,” THE ANALYST ADDED. “[IT] WILL BE HARD TO BREAK THAT OPEN. BEARS WANT 10.5 OR LOWER. IF THIS IS TRUE. ALL ALTS WILL DUMP, TOO. BREAK $11,750 AND IT WOULD BE HARD FOR ME, TO BE BEARISH. CME OPENS $11.6. STILL MACRO SHORT FOR NOW.”
The bearish comments also came as investors eyed a bullish Bitcoin based on its recent achievement against the ongoing macro outlook. The cryptocurrency climbed by more than 200 percent from its mid-March nadir of $3,858 after the Federal Reserve began its immense bond-buying programs and slashed its benchmark interest rates to near-zero.
New last week, Fed chair Jerome Powell pledged to keep aiding the US economy against the rising COVID-19 pandemic. He emphasised on maintaining the inflation rate higher above their 2 percent target, which steered to an overlong period of lower interest rates. That left the US dollar index (DXY) in a weaker state.
Bitcoin, which has recently acquired an inverse exchange with the greenback, climbed, on the other hand. Critics noted that more and more people started handling the nascent asset as their hedge toward the inflationary outlook, with some pointing that these catalysts alone could push BTC/USD above $20,000 this year.
Bitcoin Eyes $12K
“THERE ISN’T MUCH HOLDING BITCOIN BETWEEN THE CURRENT PRICE AND $13KS ON HIGH TIME FRAMES,” THE ANALYST SAID. “I PERSONALLY THINK IT’S TIME BTC MAKES WAY FOR $12K+ AGAIN.”
BTC/USD was trading at $11,690 at the time of this writing, down 0.39 percent into the Monday session.