It appears that Bitcoin bulls aren’t ready to take a breather just yet after the jump to $7,600 just hours ago. Just an hour or so ago, the cryptocurrency surged past $7,900, reaching as high as $7,980 as buyers finally have stepped in. As of the time of writing this article, the cryptocurrency is up 5.79% in the past 24 hours, slightly underperforming Ethereum’s near-6% performance and dramatically falling short of XRP’s jaw-dropping 12% gain.
Due to the fact that this move in the cryptocurrency market literally came out of nowhere, with few analysts predicting such strong of a bounce would take place, analysts have been trying to look for answers to the question “What caused Bitcoin to surge near $8,000?”
The answer seemed obvious: according to Coinmarketcap, the leading cryptocurrency information source, reported that the market capitalization of USDT, Tether’s foremost stablecoin, seemingly jumped by $500 million, implying to some that investors had injected that much into the crypto market to buy up BTC and other digital assets.
The idea here being that growth in the circulating supply of USDT has seemingly correlated with moves in the price of Bitcoin.
Though it appears this isn’t the case. Prominent cryptocurrency trader I am Nomad recently pointed out that per a tweet from StablecoinsWar, a news source tracking stablecoins, USDT’s market capitalization didn’t increase. Instead, Coinmarketcap’s data was updated to include USDT on the Tron blockchain, meaning that no new tokens entered the market.
Regardless, investors are still bullish on Bitcoin.
Still Bullish on Bitcoin
Josh Olszewicz, an analyst at Brave New Coin, recently noted that an inverse head and shoulders chart pattern — a bullish pattern that is likely to mark a strong bottom for BTC — is playing out for Bitcoin.
He remarked in a TradingView post outlining his trading idea that should BTC hit $7,525 (and it has), a move to the $8,100 to $8,700 range — a 7% and 14% rally, respectively — is likely to play out. As to why the rally will stop there, he cited a confluence of a few key resistances: the 200-day exponential moving average, the daily Ichimoku Cloud, a yearly pivot point, and the weekly 20 moving average.
Also, per previous reports from this outlet, an analyst noted that BTC’s current price action is eerily reminiscent of that seen in early-2019, prior to the $1,000-in-a-day breakout that kicked off the 330% Bitcoin bull market seen last year.