As shorts soared and Bitcoin fell below $33,000, traders warned that Bitcoin prices would be “violently” squeezed

Bitcoin (Bitcoin) Fell below the support level of $33,000 on July 12, because the familiar low volume and increasing short positions put pressure on price movements.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Short sellers failed to trigger Bitcoin crash

Data from Cointelegraph Markets Pro with Transaction view Track BTC/USD as it hit a local low of $32,880 on Bitstamp.

Just like last week, The increase in short positions on the major exchange Bitfinex reduced the range of Bitcoin, bringing it back to the last support zone before retesting the $30,000.

BTC/USD fell by about 2.9% on the day and fluctuated around 33,000 USD at the time of writing, but losses were avoided.

Previously, analysts had More optimistic Regarding the short-term outlook, an upward rebound is expected this week, and the target may be US$38,000.

“I have reached this stage, I have completely completed this range of Bitcoin,” understandably, the tired Michaël van de Poppe to sum up Twitter fans.

BTC/USD short 1-day candlestick chart (Bitfinex). Source: TradingView

Traders: Prepare for Bitcoin’s “violent action”

Those seeking more excitement will not be left out this week, even if the scope behavior continues.

related: Grayscale Big Bitcoin Unlock Countdown: 5 Things to Watch About Bitcoin This Week

This time the inspiration came from the famous trader John Wick, who was Series of tweets A rare signal was seen in Bitcoin on Monday that historically required rapid price changes.

“We have now entered an area of ​​coiled fluctuations indicated by the yellow shading,” he commented alongside a chart describing an event called “squeeze”.

“The forthcoming and imminent violent action. This tells you it’s time to start paying attention. It can be resolved as a squeeze breakthrough or a false breakthrough in the next few weeks.”

Squeezing does not happen every day. Wick said that the first two incidents involved going from US$9,100 to the most recent all-time high of US$64,500, and a subsequent correction to US$30,000.

Although the exact time and nature of the next squeeze, and even its direction are still unknown, Wick’s tendency is to go up.

What motivates his belief is the recent accumulation of BTC and the support of $30,000.

John Wick’s BTC/USD “squeeze” scenario.Source: John Wick/Twitter