The $40K-$42K Range Replaces the Previous $46K-$52K for Bitcoin – Short Squeeze Incoming?
The price of Bitcoin is moving in a narrower and narrower range.
After the leverage flush on the night of December 3 to 4, 2021, the price of Bitcoin dropped rapidly from the $56K area to the $42K and then moved sideways into the $46K - $52K range. The $52K was tested twice, but each time a rejection occurred.
So the Bitcoin price started 2022 well within this range. And then, on January 5, the longs were liquidated again causing an exit from this range to the bottom. The price of Bitcoin hit $42K, which once again highlighted the appetite of institutional investors and whales for this price range.
However, this did not prevent the price of Bitcoin from entering a new range even narrower than the previous one: the $40-$42K range. On January 10, 2022, a new liquidation of long positions even caused the price of Bitcoin to fall below $40K, which reinforced the fear of most investors.
However, the price of Bitcoin is currently on major support. This $40K had held up at the end of September 2021 when the Evergrande case had scared all the markets. With the fear of a Chinese Lehman Brothers out of the way, the price of Bitcoin then posted a remarkable October with a +30% performance.