Bitcoin (BTC) has pumped nearly 5%, while Ethereum (ETH) pumped nearly 10% over the past 24 hours. This resulted in shorts worth $800m being liquidated.
The overall crypto market cap pumped by nearly 5%. This has resulted in a short squeeze worth over $800 million, according to data from Coinglass. The pump liquidated over 100,000 traders in 24 hours. The largest single liquidation order happened on the Okex exchange in ETH-USDT-SWAP worth $3.05m.
The overall crypto market cap
In a 4-hour timeframe, the crypto total market cap formed an inverse head and shoulder. It broke the neckline at 901.6bn and spiked to 944bn. The one trillion dollar mark will be a huge psychological resistance.
Bitcoin price action
BTC showed similar price action to the crypto total market cap chart. In a 4-hour timeframe, it brokeout of an inverse head and shoulder. The volumes during the breakout were more than three times the average of the past 50 candles. This may indicate that the whales bought in significant quantities.
In a daily timeframe, BTC is trading significantly above the 50-day Simple Moving Average (SMA) after almost 45 days. The price has been consolidating from $18,500 to $20,300 for over a month. However, BTC is forming a potential double bottom, as seen in the chart below. A breakout above the $20,300 zone with the support of volume will be considered bullish.
A daily close above $21,000 is needed to sustain the pump because this is the area of solid resistance. The price rally may slow with the resistance from 100-day SMA and 20-week SMA that falls in the area. A daily candle closes above these SMAs may send the price pumping to the 23,000+ area.
The BTC community believes that, finally, there is enough volume to push the price in one direction after weeks of super-low volatility.
ETH price action
In a 1-hour timeframe, ETH was forming a Volatility Contraction Pattern (VCP) before breaking out of the neckline at 1351. The volumes shrunk quite significantly before the breakout, making the base strong. After the breakout, ETH pumped more than 10% within hours.
In a daily timeframe, ETH was consolidating between 1265 to 1382 for more than a month. It gave closing above this range with volumes more than twice the average of the past 50 days.
But, the price of ETH seems to get rejected from 100-days SMA. A closing above 100-day SMA is essential for the rally to sustain. The crypto trader would suggest avoiding FOMO buying.
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