Bitcoin has surprised the market by getting back above its bullish trend line, which it had lost last week. Will $BTC now continue to consolidate above before heading for the highs again, or is this yet another trap?
Source: Coingecko/Trading View
Bears liquidated - bulls next?
Bears were shaken out of their short positions as $BTC rose back above its trend line last Monday. Since then price has consolidated above, and now things are starting to look a lot rosier.
That said, $BTC may not be out of the woods yet. Having shaken out many of the bears after liquidations, it could happen that another dip does the same to the bulls.
According to the liquidation heatmap on Coinglass, $88 million in long liquidations would take place at a price of $41,810, and at $41,389, a further $94 million would be liquidated.
To the upside, $112 million of shorts would be liquidated at the price of $42,652. Given that $BTC is currently ranging between $39,000 and $44,000, it might be expected that at least one big position from either the bears or the bulls will be liquidated.
As things stand, it does look more likely to be the bears rather than the bulls, given that the $BTC price is back above trend. However, the market will be the ultimate decider here.
Altcoins in the green
Looking at the rest of the crypto market, a lot of the altcoins are currently in the green. Among the leaders here, Render (RNDR) is up 5.3% on the day so far, and Sui (SUI) is up 8.2%.
Bitcoin dominance to roll over?
Bitcoin dominance may be in the process of starting to roll over, having come up against resistance at 52.4%, but it’s still too early to tell. A breakdown of resistance here, together with $BTC holding firm, could help give the altcoins some more upside momentum.
