BTC price sees 17% weekly gains, but bitcoin short squeeze is ‘not over’

Bitcoin ( BitcoinTC ) was higher in the Sept. 10 week-end close, as optimistic forecasts for $23,000 next suggested that it would be.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

$23,000 remains in place

Data from Cointelegraph Markets Pro, TradingView indicated that BTC/USD hit $21,730 overnight on Bitstamp — the highest since Aug. 26,

Despite low volume weekend trading conditions that could amplify any weakness, the pair managed to preserve its previous gains .

Analysts were excited about the week ahead, which could prove crucial for short-term crypto price action.

The Ethereum Merge, as well as new US inflation data, were two of the most important catalysts that are expected to impact the market.

“Expect volatility to pick-up around next week’s economic data,” Material Indicators tweeted as part of a weekend tweet:

“In the meantime, keep in mind…THIS IS a rally. You risk losing everything if you don’t make profit along the journey.

The accompanying chart shows that the Binance BTC/USD Order Book provided solid resistance at $21,500. This was a zone bulls later appeared to overcome.

BTC/USD order book data (Binance). Source: Material Indicators/ Twitter

There was still upside for Il Capo of Crypto, the popular crypto account.

However, he added that there was a “90% probability” that BTC price action will return to under $20,000 in the future.

CJ, a trader who was interested in $23,200 as a target, also looked at various levels short-term to determine if he could find clues about long-term and short entry positions.

“Septembears take a beating

Thus, the weekly close looked set for a three-week peak with Bitcoin trading at closing prices above those of August’s second half.

Similar: Bitcoin analyst who deemed 2018 bottom warned of ‘bad winters’ and may see $10K BTC

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

Macro-economic optimism grew louder, with Hernik Zeberg, an analyst, confident that there would be a sustained rally in risk assets.

“Every time Inflation peaks — Stock market rallies!” EVERY TIME And RSI — is in turning area,” he stated that day.

“US CPI will be released on Tuesday. It will not be the last!

U.S. inflation vs. S&P 500 annotated chart. Source: Henrik Zeberg/ Twitter

The July CPI data indicated that the U.S. might have seen peak inflation.

These views and opinions are the author’s and do not necessarily reflect those of You should do your research before making any investment or trading decision.

Opinion writer on 7trade7