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.
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.
