Bitcoin is currently traded for a little under $13,800, thus forming another lower limit as it is expected to move even higher in the coming days.
The coin is below the daily high of $14,100, which was set about 16 hours ago.
Analysts believe that Bitcoin could rally even higher once the $14,000 region becomes supportive.
One trader even believes that Bitcoin could experience a „reverse surrender.
Bitcoin could explode higher if it breaks through the $14,000
Bitcoin has experienced a strong rally over the past day, exceeding the $13,500 achieved yesterday. At its highest levels in the last 24 hours, the leading crypto currency traded for up to $14,100.
However, the rally stopped abruptly when sell orders for $14,000 were placed. This led to a rapid rise from the highs of $14,100 to $13,500, which was a major liquidation event for both short and long positions at that time.
Bitcoin is currently traded for just under $13,800, creating another floor as it appears to be rising even higher in the coming days.
Analysts currently consider $14,000 and $14,100 to be the main levels to watch. The latter is of course the high that Bitcoin reached on Saturday.
A prominent crypto-currency analyst now believes that if the crypto-currency can „flip“ $14,100 to support it, this will lead to a „reverse capitulation“. In other words, Bitcoin could rise massively higher, probably by dozens of percent – if it manages to convert this level into support.
The analyst behind this prediction has been historically accurate. During the March capitulation, when Bitcoin fell to $3,500 on leading exchanges, he predicted a V-shaped reversal to $10,000 by May or June. This proved to be correct months later and Bitcoin did exactly what he expected. He also anticipated much of the ongoing rally.
It is not clear exactly where he expected the Bitcoin Rally to end in the near future – although the analyst recently split the chart below. The chart was accompanied by the comment that „Bitcoin is undervalued“.
What appears to be depicted is a kind of mining-based indicator that rises rapidly after halving and predicts when Bitcoin will be at macroeconomic turning points.
Chart of BTC’s price action since mid 2012 with analysis of the crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter).
Something is building up
Probably something is building up which increases the chances that Bitcoin will explode higher than the analyst mentioned above expects.
According to market data shared by ByBt, the financing rates of almost all major crypto exchanges are currently negative. The funding rate is the recurring fee that long positions pay for short positions to ensure that the future price stays around the spot market price.
A negative refinancing rate means that there are more aggressive shorts than longs, and theN often leads to short positions because shorts have an incentive to close out their positions.