Bitcoin is making a rather spectacular comeback, as BTC price soared 15% hitting $39681. After two months of disappointing price action and multiple failed attempts to break through BTC is finally validating a bullish thesis. This is all thanks to Amazon’s crypto adoption news and the perfect supply squeeze that is acting out now.
Following the Amazon news, BTC price broke above $35,000, with bullish momentum abruptly accelerating as prices soared 15% in less than three hours from about $34,000 to $39,800.
The immediate resistance to break is at the $39500 level, further, the key resistance is stationed at $40000. In the short term, a strong break and closing above the $40,000 mark could spark a new rally. If this plays out well a surge towards $42,500 is a clear possibility.
If bitcoin fails to break through the resistance levels, it may begin a downtrend. On the downside, $37,500 serves as an initial support level. The first major support level is at around $36,800. In case of a further downtrend, the $36000 support level will come to play.
Short Squeeze is still in play!
As a result of the bullish breakout, the liquidation of shorts by traders has gone violent. Data from bybt shows that a record of $1.12B shorts was liquidated over the past 24 hours.
As called out by popular analysts Willy Woo, Will Clemente, and many others, the short squeeze that was in play has acted out today. With more shorts getting liquidated every minute, the BTC price is poised for a great rally from here. Hence, breaching the upper resistance at $42500 looks quite plausible.
Several technical indicators have also returned to providing bullish signals as a result of the quick rally. Now the price of Bitcoin has risen above its 50-day moving average once more.
BTC Price will surge beyond ATH $64K!
Popular analyst Plan B on Twitter has made a bullish case for BTC. He says the bull market is definitely not over yet. The second run of this bull market will take BTC higher than its ATH of $64000 achieved in the month of April.
He confirms that his S2FX model and On-chain signal still indicate a second leg up in the bull rally after month-long consolidations.