Bitcoin (CRYPTO: BTC) is trading slightly lower Wednesday after seeing a strong bullish movement over the past two days. The strong momentum came from about 3% of Bitcoin shorts covering their position and causing a slight short squeeze on the apex crypto. Bitcoin was able to definitively recover the $40,000 level and has been pushing higher since the cross.
Bitcoin was down just 0.01% at $43,850.34 at the time of publication.
How Bitcoin Shorts Got Smoked
According to the data from Coinglass.com, the 12-hour period of short and long percentages shows that Bitcoin had 52.27% short sellers on Feb. 27, and throughout the small short squeeze, the short seller percentage fell to 47.17% on Feb. 28. This squeeze caused the $6,000 upward move that Bitcoin saw that day.
Bitcoin Daily Chart Analysis
- Bitcoin crossed above the $40,000 level on the strong move during the short squeeze. This level may now become an area of support if the crypto can hold above it once more. The next level of strong resistance shown on the chart comes near the $60,000 level.
- The crypto trades above the 50-day moving average (green) but below the 200-day moving average (blue), this Bitcoin is trading in a period of consolidation. The 50-day moving average may hold as an area of support, while the 200-day moving average may act as resistance.
- The Relative Strength Index (RSI) has been shooting higher the past few days and now sits at 59. This shows that buyers have been moving into the market and shorts have been covering their positions. If the RSI can hold above the middle line, the crypto may continue to climb.
- See Also: $300M Liquidated As Bitcoin Surges To $44,000