Bitcoin

Why the Bitcoin price rose to $ 7,000 before the weekly close

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Before the weekly candlestick in about eight hours, Bitcoin started a slight rally and recaptured $ 7,000 a few minutes ago at the time of writing. The cryptocurrency rose 3.5% from the weekend low, but is still 7% below the local high of last week at USD 7,470.

Analysts believe this move is related to the normal dynamics of the crypto market, while Bitcoin closes the gaps in the CME’s BTC futures chart and is also due to the fact that investors in all markets are largely optimistic in the coming week. As the popular crypto trader Filb Filb explained in his telegram channel:

“Everyone is so bearish at the moment … It is as if they have forgotten that the CME market is closed [at] $ 7,300 and the weekend is classic [chicanery] We are correlated with Stonks and they have not been dumped. “

Reports report that more than 95% of CME Bitcoin futures gaps will eventually fill, making the ongoing bull rally in Bitcoin more credible.

Related reading: Crypto Tidbits: Bitcoin loses $ 7k, blockchain layoffs, Ethereum DeFi explodes

Bitcoin could shoot even higher soon

While this move has only just started from a time perspective, analysts expect Bitcoin to skyrocket in the coming days.

A dealer for example, shared a diagram that BTC is currently in a bullish position as it has managed to keep key support for a number of candles at around $ 6,800, suggesting that it has bottomed out in the short term.

If BTC follows the trader’s expected price, it will reach $ 8,000 in the next three days, which would mean a rally of 14% over the current level.

Market data confirm this trend. Mohit Sorout – Partner of the Crypto Hedge Fund Bitazu Capital – noticed that it will be “soon” time for Bitcoin to “pop” and split two charts to support his point of view.

Although at first it was not clear to most of them what exactly he meant by these charts, the trader later became revealed What he expects is that Bitcoin will experience a short squeeze as leveraged short positions are quickly pushed out of their trades, resulting in a strong rally that is higher when orders “cascade”.

In particular, the charts show that after Bitcoin’s return in the $ 7,050 to $ 7,100 range, a cascade of deals is likely to occur, which could push the cryptocurrency to its weekly highs of $ 7,400, possibly even higher.

Crypto demand is booming

To confirm this bullish narrative, there is a confluence of signs suggesting that cryptocurrency demand is booming.

According to previous reports from NewsBTC, Su Zhu from crypto and forex fund Three Arrows Capital found that there was a massive buying wall for Ethereum at Bitfinex on April 10. In fact, buyers made stunning bids valued at 250,000 ETH between $ 159 and $ 162, which equates to a price of around $ 40 million.

In addition, several pieces of evidence – such as web traffic measured by Alexa, anecdotal stories of friends and family, and order book data – suggest that buyer demand for Bitcoin is gradually increasing.

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