The crypto space appears to be finally shaking off the bear market blues today as $16 Billion suddenly floods back into the market, and Bitcoin’s price jumps by nearly $1,000 in 2 hours (05:00-07:00 UTC +1, this morning).
Not only has the meteoric rise pushed BTC dominance back over 51%, but it has also helped a vast majority of the altcoin market bank double digit gains against the US dollar.
While the reason for today’s sporadic Bitcoin boom is not entirely obvious, here are a number of factors that are likely to have played an important part in initiating this morning’s surging bull run.
- Yesterday, Bitcoin’s price action returned to test the main resistance of a 4-month ascending triangle pattern for the 5th time, after making consistently higher lows from February 8 (see image below).
- On March 29, BTC closed above the 150 SMA for the first time since July 31, 2018 (see below) which was an early signal that strong bullish momentum was building behind the asset.
- Once BTC broke over the resistance at $4,300 and continued to rise, it created a huge short squeeze on the Bitmex Bitcoin Futures market. The squeeze forced a large number of short traders to sell their positions at a loss and many will have bought up BTC to cover their shortfalls.