By now the US markets have closed again. We note for the last time this week the live Bitcoin price and the prices of the top 25 crypto coins. In addition, we look ahead to an exciting weekend. Before we do that, we signal a real, bullish Bitcoin revolution in America.
We begin with the live Bitcoin price and the prices of the top 25 crypto currencies.
Live Bitcoin price rises, as do prices of top 25 crypto coins
At the time of writing, the live Bitcoin price is quoting EUR 33,881.899 ($37,740.20). This is 2.02% higher than when the US markets closed last night.
In addition, we see that sentiment for the other crypto coins in the top 25 is also rapidly becoming more positive. We see mainly green prices. Apart from some stable coins, only Terra (LUNA) and Cosmos (ATOM) with – 5.81% and – 094% respectively are still posting negative results today. The strongest increase is for Crypto.com Coin (CRO), which is quoting + 7.91%. You can follow all live crypto prices on the Tradeincrypto.com site 24 hours a day, including all weekend, and it could be important this weekend.
Before we explain why, let’s look at a real Bitcoin revolution in America.
Are American states causing Bitcoin revolution?
When we talk about America, the addition “United States of” is sometimes forgotten. Yet it is important. The states that make up America are allowed to decide on many things themselves. We already saw with Covid19 that some states used this power to abolish all measures. Now we see the same thing happening with Bitcoin. At the federal level (say national level), they want to tightly regulate Bitcoin. The Biden administration’s announcements sometimes scare the market.
Still, states are free to make their own policies in this area as well. Now it appears that a number of states are not afraid of Bitcoin at all and even want to accept it as legal tender following the example of El Salvador. The state of Arizona is currently the furthest along, where the legislation is already pending and if the state accepts the law, Bitcoin as a means of payment will be a reality there.
Other states are also, albeit less far along, in preparation for accepting Bitcoin as legal tender. For example, one of Texas’ gubernatorial candidates wants to create a “Bitcoin Citadel,” and Florida and Wyoming also seem to be on their way to accepting the BTC.
Exciting weekend for Bitcoin: short squeeze or dead cat bounce?
The BTC is still battling resistance around $37,000. Although the price is now slightly above it, this is not yet strong enough to consider this hurdle taken. Nevertheless, the rapid rise is once again stirring up a lot of speculation and, as we can see, the market is still divided into two camps. One camp thinks that this weekend the way up will be found and sees a short squeeze. The other camp fears that we will be made happy with a dead cat and foresees a dead cat bounce. In any case, the weekend looks like a harbinger of a volatile week. We list both scenarios.
Are we seeing a dead cat jump for BTC?
The explanation of the term “dead cat bounce” is rather sinister. Analysts mean by this that if you throw a dead cat on the ground it will bounce up one more time, but then fall down dead anyway. In crypto terms, if the market is negative the price may rise for a while, but will then fall back further.
The pessimistic analysts think we are seeing such a pattern now. While the stock price is rebounding after last week’s crash and the set-back after the Fed announcement earlier this week, they see little reason to cheer in further analyses.
Indeed, they note that the price is currently high in a consolidating range of $30,000 to $40,000 and that there are no indicators to explain the (upward) breakout of this market. They therefore expect the price to fall sharply again and head towards the bottom of the consolidating range.
Is a short squeeze for Bitcoin coming?
Against this is the opinion of another group of analysts. They include leverage in option contracts and volatility in their analyses. If the volatility of the Bitcoin price, or volatility (measured by the volatility index) increases and there is a lot of stress on the leverage, it can mean that many positions are executed because the value of the collateral is not high enough.
When the long positions are liquidated in such a situation it is called a long squeeze and is a harbinger of price declines. If the short positions have to be liquidated because prices are rising this is called a short squeeze and is in fact a bullish signal. Based on these analyses the positive analysts think that the short squeeze and thus the sharp rise in prices is about to begin.
Who is right and what does this mean for the BTC price?
The old saying goes that the market is always right. What is certain is that both camps expect much more volatility and rapid price movements. With corporate investors largely celebrating the weekend, it will be interesting to see if retail investors will return after last weekend’s crash. In any case, a lot of movement can be expected in the coming days and week, so we would prepare for an uncertain BTC market.
Want to stay up to date on the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly price forecast might be a reading tip.
