Well, what do you know! Bitcoin (BTC) in the past few hours has absolutely knocked the socks of bears.
Since the daily low of around $7,450, the leading cryptocurrency has surged by 17% — liquidating $150 million worth of short positions in the process.
As of the time of writing this piece, BTC is changing hands for $8,600, just $200 shy of the $8,800 daily top seen so far.
While the day is far from over, many analysts have seen this move higher as undeniably bullish for the cryptocurrency markets at large.
The Wolf of All Streets, also known as Scott Melker, pointed out in the wake of this move that the recent volatility nearly confirms a bullish SFP pattern on BTC’s one-month chart. This would likely mark a reversal to the downtrend Bitcoin has seen since late-June if it plays out.
Very likely to close the month with a bullish SFP. Very, very rare on the monthly chart. Any close above that red line would qualify. Clearly, there was a ton of demand and liquidity engineered in the past few days. pic.twitter.com/raJ6jSeRgl
HornHairs, another popular analyst, has echoed this optimism. In his own tweet, he noted that this strong upturn has seen Bitcoin defend the confluence between its yearly pivot price and the eight-month moving average — a level that he claims “has never failed to support price.”
Earlier this week, we reported that Bakkt’s Bitcoin futures (BTC) saw a massive volume boost as the cryptocurrency market tumbled by 10% within a few hours’ time. In fact, the upstart’s market saw 640 contracts traded, 653% the volume of the day prior and at least double of the previous traded contract all-time high.
This trend has continued into Friday.
According to Bakkt Volume Bot, a Twitter account dedicated to following trends in the exchange’s Bitcoin futures market, the contract has seen 661 BTC ($5.5 million) worth of volume thus far, even though the trading day is 38% through. If this trend continues, Bakkt’s Bitcoin futures will have seen 1,740 BTC worth of volume during Friday’s trading session.