Bitcoin Short Squeeze Not Over as BTC Price Eyes 17% Weekly Gains

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Bitcoin (BTC) remained higher until the weekly close on September 10, with bullish forecasts favoring $23,000 thereafter.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

The $23,000 goals remain in place

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit $21,730 on Bitstamp overnight – the most since August 26.

The pair managed to hold onto its earlier gains despite low volume trading conditions over the weekend that could amplify any weakness.

Among analysts, excitement was palpable at the start of the new week, which should prove crucial for near-term crypto price action.

The Ethereum (ETH) merger and new US inflation data were the main catalysts believed to influence the market.

“Expect volatility to pick up around next week’s economic data,” on-chain monitoring resource Materials Indicators wrote in part of a tweet over the weekend.

“In the meantime, remember… This is a rally. If you don’t make a profit along the way, you risk giving it all back.

An attached chart showed that the Binance BTC/USD order book offered strong resistance near $21,500, an area the bulls then appeared to overcome.

BTC/USD order book data (Binance). Source: Materials Indicators/Twitter

For Crypto’s popular Il Capo account, meanwhile, there was room for an added edge.

He addedhowever, that there was a “90% chance” that BTC price action would return below $20,000 in the future.

$23,200 was also a target for trader CJ, who was watching various short-term levels for clues to long and short entry positions.

“Septembears” takes a beating

The weekly close therefore appeared to be a three-week high, with Bitcoin already trading above closing prices from the second half of August.

Related: Bitcoin Analyst Who Called 2018 Low Warns ‘Bad Winter’ Could See $10,000 BTC

BTC/USD 1 week candle chart (Bitstamp). Source: Trading View

On the macro side, hopes that a sustained rally in risk assets would ensue have become more vocal, with analyst Hernik Zeberg particularly confident.

“Every time inflation peaks – stock markets rally! EVERY TIME! And the RSI (momentum) – is in the reversal zone,” he said. argued day.

“The US CPI will come out on Tuesday. This time will be no different!

Annotated chart of US inflation versus the S&P 500. Source: Henrik Zeberg/Twitter

CPI data from July showed that the United States may have already experienced a spike in inflation.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.