Why is the Bitcoin and cryptocurrency market booming today?
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Bitcoin (BTC) has made a major comeback in the last few hours after falling to its lowest price since June 21 at $28,641 yesterday. Bitcoin was up 3.7% from its low at the time of publication. Indeed, Bitcoin has surpassed the $30,000 level, signaling a significant change in market sentiment. Thus the question arises.
Why Is #bitcoin
Increasing Today?
"The whole brief build-up of the last several days has just been obliterated," analyst Byzantine General tweeted. Statistics from Coinglass supports this assertion, revealing that $27.8 million in #BTC short positions were liquidated yesterday, followed by a further $13.45 million today. This is the largest short liquidation since July 14, clearly having a factor in the recent price trend.
"As with previous programs, we may utilize the profits for general business objectives, such as the acquisition of Bitcoin or the buyback or repayment of our current debt," stated Andrew Kang, MicroStrategy's CFO, during a recent earnings call. Although it is uncertain if the full amount would be invested in Bitcoin, a significant portion is guaranteed. During one hour of this statement, Bitcoin increased by 1.6%.
"Bitcoin has broken back over $30k once again, with support from the numerous traders who capitulated during the last week of price falls," on-chain analytical company Santiment tweeted. To begin August, volume is increasing, and this psychological barrier cross may move attitude positively."
According to the firm's data, trade volume increased again Wednesday, reaching its highest level in six weeks. In addition, the lowest profit / loss in 7 months implies a capitulation occurrence.
What Comes Next?
He did, however, warn that the 4-hour chart is now forming a typical Swing Failure Pattern (SFP) into a higher time-frame support / resistance. The Swing Failure Pattern, or SFP, is a reversal pattern in which traders aim stop-losses above or below a major swing low or high in order to control price direction by producing adequate liquidity.
Yet, the market looks to be buzzing with excitement. "If price continues ranging here, I'd look for another sweep of the lows and consolidation there," says The regions of interest are $28.5 and 29.5K." Nevertheless, a break over the monthly and weekly open resistance zones of $29,236 and $29,300 would justify a bullish scenario in which the price approaches $30,000.
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