Bitcoin short squeeze ‘not over’ as BTC price eyes 17% weekly gains

Bitcoin (BTC) stayed higher into the Sept. 10 weekly close as optimistic forecasts favored $23,000 next.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$23,000 targets remain in place

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $21,730 on Bitstamp overnight — the most since Aug. 26.

The pair managed to conserve its prior gains despite low-volume weekend trading conditions being apt to amplify any weakness.

Among analysts, excitement was palpable going into the new week, one which should prove pivotal for short-term crypto price action.

The Ethereum Merge and fresh United States inflation data were the top catalysts expected to influence the market.

“Expect volatility to pick up around next week’s economic data,” on-chain monitoring resource Material Indicators wrote in part of a tweet over the weekend:

“In the meantime, remember…THIS is a rally. If you don’t take profit along the way, you risk giving it all back.”

An accompanying chart showed the Binance BTC/USD order book providing solid resistance near $21,500, a zone which bulls subsequently appeared to overcome.

BTC/USD order book data (Binance). Source: Material Indicators/ Twitter

For popular account Il Capo of Crypto, meanwhile, there was room for additional upside.

He added, however, that there was a “90% chance” that BTC price action would return back under $20,000 in future.

$23,200 was also a target for trader CJ, who eyed various short-term levels for clues as to long and short entry positions.

“Septembears” take a beating

The weekly close thus looked set to be a three-week high, Bitcoin already trading above closing prices from the second half of August.

Related: Bitcoin analyst who called 2018 bottom warns ‘bad winter’ may see $10K BTC

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

On macro, hopes that a sustained risk asset rally would ensue became more vocal, with analyst Hernik Zeberg particularly confident.

“Every time Inflation tops — Stock market rallies! EVERY TIME! And RSI (momentum) — is in turning area,” he argued on the day:

“US CPI coming out on Tuesday. This time will not be different!”

U.S. inflation vs. S&P 500 annotated chart. Source: Henrik Zeberg/ Twitter

July CPI data showed that the U.S. may have already seen peak inflation.

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