HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

It’s “Thin Air” For Bitcoin If Price Crosses $14,000 on a Macro Basis

Bitcoin 2020/10/28 01:46 by Nick Chong

Bitcoin has undergone another massive leg higher over the past day. After bottoming at $12,800 yesterday, the cryptocurrency has surged higher towards $13,800. The coin currently trades for $13,700 as it attempts to stabilize after the daily candle close.

Analysts are getting ready for fireworks as Bitcoin nears the pivotal $14,000 resistance level. $14,000 has long been an important level for Bitcoin, marking the highs almost perfectly during 2019’s surge to the upside in the summer.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Expected to Enter “Thin Air” if Price Crosses $14,000

Bitcoin is expected to enter “thin air” if the coin can cross $14,000 on a weekly or monthly basis, analysts say. One crypto-asset analyst shared the chart below amid BTC’s latest thrust higher, noting that the cryptocurrency breaking that resistance could spark an even greater rally:

“The 2018 (start of the bear market) yearly open. This is it. This is the last “resistance”. Above this level, it’s thin air.”

The leading cryptocurrency is expected to move toward that range in the coming days as it holds the high-$13,000s.

Other analysts that have accentuated the importance of $14,000 include Raoul Pal, the CEO of Real Vision and a former head of hedge fund sales at Goldman Sachs.

Pal believes that once Bitcoin passes $14,000, the only macro resistance that it will face is at $20,000. But arguably, $14,000 is even more important than $20,000 due to the amount of volume around this level.

Image

Source: BTCUSD from TradingView.com. Chart of BTC's price action since the start of 2017 with analysis by crypto trader Byzantine General (@Byzgeneral on Twitter).
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Funding Rates Go Negative, Increasing Chances of Short Squeeze

The chances are increasing that Bitcoin spikes from here.

Crypto-asset derivatives tracking site ByBt reports that the predicted funding rates of leading Bitcoin futures markets are currently entering negative territory. The funding rate is the fee that long positions pay short positions every eight hours to keep the price of the future close to the price of the spot market.

Negative funding rates suggest that shorts are more aggressive than longs. Negative funding rates in uptrends suggests there are traders expecting prices to drop, but this can result in short squeezes if the price inches high enough to trigger a series of stop losses.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Title

0 Like(s)



You should also read...

Bitcoin 01/08/20 01:59 by Nick Chong
As Bitcoin Pushes $11,500 Top, Funding Rates Drop: Why This Is Bullish
Earlier this week, Bitcoin topped out at $11,500 — a historically important price point. The leading cryptocurrency proceeded to drop by approximately 7% to $10,600 in the 24 hours that followed the...
Read More
Bitcoin 15/09/20 12:00 by Nick Chong
Bitcoin Surges Towards $10,800 as Recovery Continues: Here’s What Comes Next
Bitcoin is surging higher as legacy markets rally. The leading cryptocurrency is up around 5% in the past 24 hours, outpacing many altcoins, with focus re-centering on BTC. The cryptocurrency seems to...
Read More
Bitcoin 02/11/20 22:42 by Nick Chong
Bitcoin Bounces $500 After 7% Correction: What’s Next for BTC?
On Monday morning, Bitcoin plunged lower despite a rally in the price of equities. The price of the leading cryptocurrency currently is $13,700, around $500 above the daily lows at approximately $13,2...
Read More
Bitcoin 13/01/21 02:14 by Nick Chong
Bitcoin Just Dropped Below $33,000: What Analysts Are Saying
Bitcoin has begun to drop lower once again despite the flush on Monday to $30,000. The leading cryptocurrency currently trades for $32,500, below the $36,000 highs the cryptocurrency saw during a boun...
Read More
Bitcoin 28/04/21 01:25 by anifowosheibrahim
Bitcoin Market Dominance Falls As $55k Resistance Pushes Alt-season 
The crypto market saw high gains for the second day after the weekend sell-off that caused the market to look like a bloodbath. Data from TradingView showed that Bitcoin rose above $54,000 in the earl...
Read More