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- Bitcoin trades at $117,926 with a 6.16% gain; daily volume soars 99.39% to $123.95 billion.
- Shorting Bitcoin now is risky, as technical data shows strong potential for continued upside.
- Current price stall is crucial, a weak breakout could lead to high volatility and sell pressure.
As of press time, Bitcoin is trading at $117,926, marking a 6.16% over the past day. The trading volume for the same day stands at $123.95 billion, showing a 99.39% increase. Over the past 7 days, Bitcoin price has rise by 8.18%.
Source: CoinMarketCap
Analyst Jip Molenaar had highlighted that it could be a risk to short Bitcoin at this point. He has examined several weekly technical indicators and is convinced that the present rally may last in the short term. His argument lies in time-based and distance-based historical patterns which support a strong bullish continuation.
Source: X
Bullish Continuation Signals
On the time-based view, the statistics indicate that only 9.1% of the past weeks have seen the weekly low being broken after this time. Conversely, 81.3% of corresponding instances established a fresh second pivot within the same week. It indicates that when the weekly low is held, as Molenaar calculates that there is a 90.9% likelihood, there is a high probability of Bitcoin establishing a new high by the end of the week.
Source: X
The metrics based on the distance offer even another confirmation level. Based on the distance between the low and high, only 33.8% of previous similar setups revisited the weekly low. More importantly, 98.1% of weekly candles over the past four years experienced greater price displacement than that observed this week so far. This ranks the existing movement week candle in the lowest 1.9% of all these movements, implying that Bitcoin has much to grow.
Source: X
Molenaar also noted that the current target that will give a confidence of 90% this week is close. He has also reduced his outstanding long positions by half in recent times, but he is also bullish on the rest of the week. Support levels have shown resiliency and volume has only increased, sustaining the bullish bias of Bitcoin, and recent information affirms the bullish trend in the immediate short term.
Source: X
Bitcoin Stalls After High
Daan Crypto Trades revealed that Bitcoin temporarily reached a new all-time high but did not manage to support the breakout. The strength diminished rapidly, causing concerns of bullish continuation in the short term. He pointed out that the price sweep was insufficient to provoke significant liquidity grabs. The breakout was not characterized by the impetus normally required to drive a bigger rally.
Source: X
Daan warned that Bitcoin can not continue to remain in stall at this level. Many positions had been opened, awaiting a decisive breakout. The delay might lead to sudden sell-offs and volatility. He said the present zone was crucial. The implementation of the price in this region can decide whether Bitcoin sparks an additional leg up or a severe retrospection.
