Bitcoin short squeeze ‘not over’ as BTC price sees 17% weekly gains
Bitcoin (BTC) held higher into weekly September 10 as bullish forecasts favored $23,000 next.
The $23,000 goal remains in place
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $21,730 on Bitstamp overnight – the most since August 26.
The pair managed to preserve its earlier gains despite low-volume trading conditions over the weekend apt to amplify any weakness.
Among analysts, the excitement was palpable heading into the new week, one that would prove decisive for near-term crypto price action.
The Ethereum (ETH) merger and fresh US inflation data were the main catalysts expected to impact the market.
“Expect volatility to pick up around next week’s economic data,” on-chain monitoring resource Material Indicators wrote in part of a tweet over the weekend.
“Meanwhile, remember…THIS is a rally. If you don’t take a profit along the way, you risk giving it all back.”
An accompanying chart showed the Binance BTC/USD order book providing solid resistance near $21,500, a zone that bulls later appeared to overcome.
For the popular account Il Capo from Crypto, meanwhile, there was room for further upside.
Short squeeze is not over. 22500-23000 should be next.
— il Capo Of Crypto (@CryptoCapo_) 11 September 2022
He addedhowever, that there was a “90% chance” that BTC price action would return below $20,000 in the future.
$23,200 was also a target for trader CJ, who looked at various short-term levels for clues about long and short entry positions.
– Sweep equal highs of 21.9k and close back below mid-July and I’ll look for a short-term view of the monthly open.
– Repeat the middle or hold as support and we are likely to see a quick move to 23.2k pic.twitter.com/xv9oarffsA
— CJ (@IrnCrypt) 10 September 2022
“Septembers” take a beating
The weekly close thus appeared to be a three-week high, Bitcoin was already trading above the closing rates from the second half of August.
Related: Bitcoin Analyst Who Called 2018 Bottom Warns ‘Bad Winter’ Could See $10K BTC
On the macro side, hopes that a sustained increase in risk would follow were more vocal, with analyst Hernik Zeberg particularly bullish.
“Every time inflation peaks – stock market rally! EVERY TIME! And RSI (momentum) – is swinging,” he argued on the day.
“US CPI comes out on Tuesday. This time will be no different!”
CPI data from July showed that the US may already have peaked inflation.
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