Bitcoin is currently being traded for just under $ 13,800, creating another lower limit as it should move even higher in the coming days.
The coin is below the daily high of $ 14,100 that was set about 16 hours ago.
Analysts believe Bitcoin could snap even higher once the $ 14,000 region becomes support.
One trader even believes that Bitcoin could experience „reverse surrender“.
Bitcoin could explode higher if it breaks the $ 14,000
Bitcoin has seen a sharp rally over the past day, past the $ 13,500 hit yesterday. At its highs in the past 24 hours, the leading cryptocurrency traded for up to $ 14,100.
The recovery stopped abruptly, however, when sell orders over $ 14,000 were placed. This resulted in a rapid surge from highs at $ 14,100 to $ 13,500, which was a major liquidation event for both short and long positions at the time.
Bitcoin is currently trading for just under $ 13,800, which creates another floor as it appears to rise even higher in the coming days.
Analysts currently consider $ 14,000 and $ 14,100 to be the top levels to watch. The latter is of course the high that Bitcoin hit on Saturday
A prominent cryptocurrency analyst now believes that if the cryptocurrency can “flip” in support of $ 14,100, it will result in “reverse surrender”. In other words, Bitcoin could go massively higher, probably by dozens of percent – if it manages to convert that level into support.
The analyst behind this prediction has been historically accurate so far. During the March surrender, which saw Bitcoin drop to $ 3,500 on leading exchanges, he predicted a V-shaped reversal to $ 10,000 by May or June. That proved correct months later and Bitcoin did exactly what it expected. He also anticipated a large part of the ongoing rally.
It’s not exactly clear where he expects the Bitcoin rally to end in the near future – however, the analyst recently shared the chart below. A comment was attached to the chart that „Bitcoin is undervalued“.
What appears to be shown is some kind of mining-based indicator that rises rapidly after halving and predicts when Bitcoin is at macroeconomic tipping points.
Something is building up
Something is likely building up, which increases the chances of Bitcoin exploding higher than the aforementioned analyst expected.
According to market data shared by ByBt, the funding rates of almost all major crypto exchanges are currently negative. The refinancing 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 refinance rate means there are more aggressive shorts than longs, and thatN often leads to short positions as shorts are incentivized to close out their positions.