Bitcoin spikes above $22,500, but odds are it’s a fakeout

Bitcoin’s (BTC) terms spiked to $22,500 successful the aboriginal hours of July 8, prompting calls of a bullish revival from immoderate quarters.

The alleviation comes aft weeks of utmost volatility that saw BTC dip arsenic debased arsenic $17,600. However, considering the utmost events of late, it’s excessively soon to telephone an extremity to the carnivore cycle.

Source: BTCUSDT connected TradingView.com

Bitcoin alleviation rally successful precarious territory

Since the commencement of the caller month, Bitcoin has gained 13% successful worth and exhibited signs of bottoming, arsenic evidenced by a definitive uptick signifier forming connected the regular closes.

The full marketplace headdress has seen an betterment implicit the past week. Since the commencement of July, inflows person totaled $53.2 billion, representing a 6% increase.

Despite the affirmative signs, @CryptoCapo warns investors not to get carried distant oregon adjacent expect an imminent determination importantly higher. His crushed — “not a azygous bullish motion to support” this thesis.

Moreover, contempt the alleviation rally, @CryptoCapo expects a steadfast rejection of the section apical retest, adding that alts could endure up to 50% losses arsenic a result.

Good morning!

DXY going parabolic. Bitcoin going up a spot and radical getting euphoric and calling for 40k. Not a azygous bullish motion to enactment this determination up and terms is inactive astatine 21k-22k (resistance)

Rejection volition beryllium strong. Altcoins could driblet 45-50%. There volition beryllium nary mercy. pic.twitter.com/5s6GMLrqGo

— il Capo Of Crypto (@CryptoCapo_) July 8, 2022

Considering the fragility of the macroeconomic situation and extreme fear successful the markets, the likelihood are this latest determination supra $22,500 is simply a fakeout.

The latest long/short ratio information from coinglass.com shows traders person moved marginally abbreviated with 48.7% long/51.3% abbreviated ratio wrong the past 2 hours.

Source: coinglass.com

As of property time, the retest of the $21,600 absorption level is breaking down.

Closure for Mt. Gox victims could summation merchantability pressure

According to a Bitcoin Magazine report, the last stages of the “Mt. Gox rehabilitation process” are taking place. Those owed funds from the speech hack were sent a letter dated July 6, successful which the lawsuit trustee confirmed repayments are being prepared.

Over 700,000 BTC were mislaid successful the 2014 hack. Investigators recovered 141,686 BTC for redistribution to the victims, who tin take to person BTC, BCH, oregon currency repayments.

Potentially, this concern could mean an further 142,000 BTC being dumped connected the market, adding to sell-side unit during this delicate time.

Even though currency payments would seemingly offset this, it’s presumed the trustee would liquidate the equivalent BTC, frankincense inactive adding to selling pressure.

The station Bitcoin spikes supra $22,500, but likelihood are it’s a fakeout appeared archetypal connected CryptoSlate.