If you recall, cryptocurrencies in general paused from their 2023 uptrends on concerns about stricter regulations in the U.S. and around the globe.
But that didn’t stop BTC/USD bulls from overpowering the bears!
A bout of risk appetite helped traders shrug off Uncle Sam’s latest retail sales report that supported higher or higher-for-longer Fed interest rates.
The risk-taking spilled over to cryptocurrencies enough so that crypto data providers noted that that around $60 – $70 million worth of Bitcoin shorts were liquidated yesterday. Yipes!
BTC/USD: Daily
Bitcoin (BTCUSD) Daily Chart by TradingView
BTC/USD, which was chillin’ below the 22,000 mark, shot up above the 24,000 psychological handle and registered its highest levels since mid-August.
Was yesterday’s spike just a fakeout? Or are we looking at the start of a longer-term reversal?
Technical indicators are a bit mixed. Stochastic suggests that there’s still room for BTC to rise as it had just left the oversold zone.But the 100 and 200 simple moving averages are still on a flat “range” mode even as the 100 SMA tightens its gap against the longer-term 200 SMA.
The next daily candlesticks should tell us more about the sustainability of BTC/USD’s upswing.
Consistent trading above 24,000 or 25,000 opens BTC to a move back to the 29,000 – 32,000 previous area of interest.
But if this week’s U.S. PPI reports or other headlines encourage risk aversion in the markets, then BTC/USD could lose its bullish momentum from yesterday’s short squeeze and it could drop back down to the 22,000 – 23,500 previous consolidation zones.
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