Connect with us

Bitcoin

4 reasons why this Bitcoin surge is bullish

Published

on

Bitcoin hits $12,000: 4 reasons why this surge is bullish
Source: Unsplash

While Bitcoin hit $12,000 and went beyond it on October 20, this surge has more to it than meets the eye. In essence, this is bullish for bitcoin and there are several reasons to quantify that.

Bitcoin technical levels

For long, bitcoin has wandered the $9,000, $10,000 levels, failing to successfully break these levels. However, On Bitstamp, BTC hit $12,313, which is a significant level and was mentioned in yesterday’s article as one of the levels to look out for should bitcoin pump.

Source: BTCUSD TrdingView

In more than a year, this level has been hit thrice [including today’s surge]. The last time it hit this level in August 2020, the price dropped back, however, the third time might be the charm. Hence, bitcoin hitting this level, in and of itself is bullish.

Bitcoin Volume

Yesterday’s pump wasn’t a fluke, and the proof is the volume that accompanied by the price surge. The aggregate BTC volume was around $15 billion, way above the daily average, and last seen in early and late September.

Source: Coinalyze

The spot volume did not see as much of a surge, however, it was in the daily average range of $2 billion.

Bitcoin Open Interest

Source: Coinalyze

*BTC OI on CME did surge before the price surge acting as a leading indicator for the price surge. Additionally, the overall OI on exchanges also saw a big surge. A healthy surge in OI, combined with volume is a bullish indication.

Bitcoin Market Sentiment

Overall, the market has experienced mini bull runs and crashes since 2018 and the users have also widely changed since the 2017 bull run. The ecosystem is relatively more mature, which also explains the entry of institutions into the market. MicroStrategy and Square’s entry is widely bullish especially because of the constant stability in price despite their announcement. The last week’s sentiment was neutral and hadn’t turned mildly greedy

Where to Invest?

Subscribe to our newsletter

Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *