Freshly squeezed blue orange juice
4 min read

Freshly squeezed blue orange juice

B21 Crypto. We help you stomach cryptoassets.

Cryptic ball: indeed, it was Pumplona.

What a short squeeze. Bitcoin appreciated up to 25% since Friday's Pamplona newsletter was sent out. We told you the bulls would run and we were indeed gifted such a beautiful show. The stories of this weekend's gains will surely mark the end of summer, but we must remind you this bounce still only puts BTC back to its neutral horizontal channel. What happened and what can we expect next?

Well, after breaking the diagonal resistance explained last week, the orange coin managed to slowly ascend and test $35k Sunday morning. That first attempt failed, but bulls charged again shortly before midnight UTC and trapped leveraged bears who were running out of margin to keep their positions against bitcoin open. 15% was gained in the next three hours as the liquidation engines automatically closed a massive amount of shorts, which rapidly pushes prices as closing these positions requires buying back the asset that was being shorted in the first place.


Chart art: we told you bears didn't have a chance.

That first 4-hour candle which pierced through the diagonal channel bitcoin was stuck in was key in setting this weekend's mood. Above it bears didn't stand a chance. For the next days it will all be about bitcoin setting some kind of triangular pattern.

Market musings: Jeff Bezos is mining bitcoin on Mars.

What next then? Well, many are claiming that the pump was caused by rumours that Amazon will accept Bitcoin and a couple other alts for payments "by the end of the year" and is preparing to launch "its own token", at least according to an insider. The only truth to this is that Friday it was reported that the digital mammoth was hiring a "digital currency and blockchain expert". That's because the rumour only came out after the pump took place, and it was published by a small British newspaper, so it took even further for the word to go around.

In normal circumstances, one should buy into rumours and sell right before those news are confirmed. However, this is unlikely to be confirmed by Amazon so soon and the pump is already behind us. In other words, it would be very improbable that we keep climbing that much again this week. Yes, July's monthly close is next Saturday, but bitcoin is already above the critical level of $37.3k, which is June's open. It should remain that way, but for now we're expecting alts to catch-up!


Visual block: fuelled by a short squeeze.

This chart provides great evidence of the short squeeze, which saw nearly $1 billion in liquidations. As said, last week was not the time to be fearful and bet against a dull market.
And we can clearly see that over the past days shorts were getting shorter, i.e. leveraged traders were borrowing more money to bet against bitcoin, which pushed exchanges to charge them more expensive funding rates. 

Three things: metaverse and NFTs.


Tweet tip: guess most bears were trading in China.

Bye, Felicia! Curiously, Binance and FTX have recently announced a new leverage limit of 20x, but that's still high enough to cause massive liquidations.

Meme moment: this could be true, you know!

Cobie is from the UK and is a well-known OG in the space, with a great sense of humour. 

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Coming Tomorrow on @NFTradeOfficial. Available to customers in +80 countries and accepted worldwide. Link in the image.

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Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of guidance in the report will lead to any particular outcome or result.