Bitcoin short squeeze ‘not over’ as BTC price eyes 17% weekly gains
Analysts are still confident that BTC price action can break $23,000 going into the Ethereum Merge and U.S. CPI data.
Bitcoin (BTC) stayed higher into the Sep. 10 weekly close as optimistic forecasts favored $23,000 next.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
$23,000 targets remain in place
The pair managed to conserve its prior gains despite low-volume weekend trading conditions being apt to amplify any weakness.
Among analysts, excitement was palpable going into the new week, one which should prove pivotal for short-term crypto price action.
The Ethereum (ETH) Merge and fresh United States inflation data were the top catalysts expected to influence 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.
“In the meantime, remember…THIS is a rally. If you don’t take 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 which bulls subsequently appeared to overcome.
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
For popular account Il Capo of Crypto, meanwhile, there was room for additional upside.
Short squeeze is not over. 22500-23000 should be next.
— il Capo Of Crypto (@CryptoCapo_) September 11, 2022
He added, however, that there was a “90% chance” that BTC price action would return back under $20,000 in future.
$23,200 was also a target for trader CJ, who eyed various short-term levels for clues as to long and short entry positions.
– Sweep equal highs at 21.9k and close back below July mid and I’ll be looking for a short targeting the monthly open.
– Reclaim the mid or hold as support and we likely see a fast move into 23.2k pic.twitter.com/xv9oarffsA
— CJ (@IrnCrypt) September 10, 2022
“Septembears” take a beating
The weekly close thus looked set to be a three-week high, Bitcoin already trading above closing prices from the second half of August.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
On macro, hopes that a sustained risk asset rally would ensue became more vocal, with analyst Hernik Zeberg particularly confident.
“Every time Inflation tops — Stock market rallies! EVERY TIME! And RSI (momentum) — is in turning area,” he argued on the day.
“US CPI coming out on Tuesday. This time will not be different!”U.S. inflation vs. S&P 500 annotated chart. Source: Henrik Zeberg/ Twitter
July CPI data showed that the U.S. may have already seen peak inflation.
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