Similar to Stockholm syndrome where captives develop a psychological bond with their captors, crypto winters have a way of flipping even the most bullish cryptocurrency supporters bearish in a short period of time.
Evidence of this reality was on full display on July 19 after the recovery of Bitcoin (BTC) back above $23,000 was met with widespread warnings that the move was merely a fakeout before the market heads for new lows
Not bad. But keep in mind that this still can turn into a classical fake out.
My general thesis still remains, bear market rally pic.twitter.com/VxnH4mo6hW
— Jimie (@Your_NLP_Coach) July 19, 2022
While the possibility of new lows being set in the future can’t be ruled out, here’s a look at analysts’ opinions on how this BTC breakout could be different than most investors expect.
This time “it’s different”
The pointed message of “this time is different” was offered by pseudonymous Twitter user Trader XM, who posted the following chart outlining why BTC is poised to head higher.
BTC/USD 4-hour chart. Source: Twitter
As highlighted on the chart above, BTC price did not retest of the range low even as four retests of the range high took place, and this suggests that buyers are now stronger than sellers.
In response to the post from Trader XM, Twitter user Justiinape replied “$27K-$28K seems imminent.”
Trader XM said,
“Agree my man, move to $27-28K then months of consolidation. Let’s enjoy this move before the long hibernation.”
The next major resistance is at $27,100
Further evidence that BTC could head higher was supplied by the on-chain data firm Whalemap, which posted the following chart highlighting the lack of buying demand between $23,000 and $27,000.
Bitcoin volume profile. Source: Twitter
“$27,100 should be the first resistance on our way up. Big gap in supply between current prices and $27K.”
Related: Bitcoin price moves toward $24K and traders expect further upside, after a support retest
Shorts get REKT
Proof that crypto traders had been lulled into an overly bearish outlook was provided by…