Bitcoin is back. Over the past few minutes, the asset has rocketed higher past $10,000 for the first time in approximately six weeks. At the local highs, the asset reached $10,150 — and slightly higher on margin exchanges.
BTC price chart from TradingView.com
According to data shared by crypto derivatives tracker Skew.com, approximately $50 million worth of Bitcoin short positions have been purged on BitMEX. This is the largest liquidation event in many weeks since there has been such low volatility in these markets.
BTC’s price action comes as the altcoin market has undergone an explosive breakout.
Ethereum is up approximately 40% in the past seven days, after managing to move above the pivotal $250 resistance. ETH, analysts say, is primed to enter a macro bull run due to fundamentals, on-chain metrics, and a strengthening technical case. Even Bitcoin maximalists have admitted that the asset looks ready to move higher.
Start of a Greater Move for Bitcoin?
This could be the start of a greater move for Bitcoin, say some analysts.
Over an extremely short time frame, analysts are eyeing a move to $10,400, a pivotal technical level of macro importance.
“I believe we’re at a very pivotal level here. If we break above 9.7k I would expect 10.4k but I won’t get overly bullish before that Lose 9.4k and I’ll have my eyes on 9.2k. If that breaks, I think this will all have been a fakeout and we head to 8k Plan. Wait. React.”
As reported by NewsBTC previously, some have been even more optimistic.
According to the head analyst at Blockfyre, a crypto research firm, Bitcoin’s CME futures closed above a three-year downtrend on Friday:
“#Bitcoin just had it’s first daily close ever ABOVE the 3 year downtrend line from ATH’s when CME Futures launched. This is potentially an invalidation with a HH of any bearish case and the official start of a new macro bull trend.”
Chart of Bitcoin's macro price action (BTC futures on the CME, not spot exchanges) by trader "Pentoshi" (@pentosh1 on Twitter). Chart from TradingView.com
BTC’s spot market is poised to close above that same downtrend in the coming days.
The analyst who made this observation expects Bitcoin to “teleport” due to this technical occurrence.
A Blow-Off Top?
This move is Bitcoin’s first major explosion higher in the past week. This is signified by this being the only surge higher that was marked by a large increase in leveraged short liquidations. Some would argue that due to this, there’s room to rally.
But as of the time of this article’s writing, BTC has failed to hold above $10,000. It finding a rejection at that level in the hours ahead may confirm that the asset remains in a range pattern, not in an uptrend.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Explodes Past $10,000 For the First Time in Six Weeks: $50M Liquidated