A Much Needed Recovery Or A Short Squeeze ? That is the question. / G20 News
~6 min read
Yesterday we hit a low of ~7300$ and after a bit of consolidation we made a 1000$ + move to make an incredible reversal. Today crypto enthusiasts were pleasantly surprised by some positive news about Cryptocurrencies. For those who don't know - there is a G20 Summit in Argentina at the moment and representatives of all major economies are there to discuss finance and politics, of course crypto was on the agenda.
The breaking news is that according to Reuters
The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time
which essentially means that regulating crypto at this point on a large scale is not necessary. A lot of people were expecting some regulation talks on the summit and when the expectations didn't match reality the bears threw the towel.
Altcoins are up as much as 30-40-50% today and the low of the combined crypto market cap from yesterday (275B) seems far, far away. We are currently at around 330B.
Bitcoin
The thing is that when there is a bear market and a lot of people seem to be "short" Bitcoin (betting against BTC), short squeezes are something very common. The idea is that a short squeeze will force the weak hands to close their short position driving the price even higher. In such an illiquid market like Bitcoin this is pretty easy to do.
I think this is exactly what we saw on 11 and 12th of March.
What is also interesting is that we are rejected by the 8-day EMA and we are still below all major moving averages (The 8-day is currently at 8480$). I don't want to be negative but I believe we are still in bear market teritorry and before we reclaim the moving averages I tend to think that we might see lower prices.
What's Next?
- First resistance seems to be the 8-day EMA (8480$)
- A close under 8170$ seem bearish
- 8000-8100$ should be a good support
Do you think the worst is over ? Share with us in the comments :)
I also have doubts about the currents mouvements.
Bitcoin bumped when it was oversold on the daily (according to the RSI), and volume isn't convincing.
Plus, a rising wedge pattern is visible on the 15m chart.
Its a good idea to set stop losses in these conditions.
On the other hand, this +16% move seems to have awoken a general optimism among the traders: let's hope they will FOMO 😃
Yes, absolutely ! I feel a lot of " everythings fine" vibe in the air. I believe if we get hammered once again it might get very ugly. When people set their expectations too high they might get disappointed very quickly.
You got a 2.95% upvote from @postpromoter courtesy of @ervinneb!
Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!