Bitcoin explodes, rises by 5,000 dollars overnight - is the next bull run starting now?
In an almost vertical move, Bitcoin rose by around 5,000 dollars tonight. Where does BTC go from here?
Will Bitcoin crack $40k this week?
For weeks, the Bitcoin community has been looking at $35,000 as a critical area for BTC to overcome. Time and again, BTC tried to reach the limit, but was always brusquely rejected.
Then tonight the surprise: at just before half past 2, the bitcoin price exploded and pushed the number 1 coin vertically upwards - from $34,600 to $39,700. $40k within reach. BTC did face a slight decline here. But the number 1 cryptocurrency bulls did not admit defeat: BTC was able to demonstrate some strength and is currently trading at just under $38,000.
Where does Bitcoin go from here?
On-Chain analyst Will Clemente comments: The rise has caught short sellers stone cold. Bitcoin's massive move liquidated $111 million in shorts in just ten minutes.
At the same time, top analyst Willy Woo explains the reason for the drastic rise in the Bitcoin price: a so-called short squeeze. This refers to the shortage of supply of an asset that was previously sold short in large numbers. After the short sales, the resulting open positions have to be closed out again - this is done by buying back the assets. Woo has been announcing this "supply shock" in Bitcoin for weeks (we reported).
Still this week: trader expects rise to 72,000 dollars
Some speculate that Bitcoin's rise may have been triggered by news that e-commerce giant Amazon plans to integrate Bitcoin payments before the end of 2021. However, the information is based on the statements of an unnamed insider - a confirmation from the company is still pending.
"It begins with Bitcoin - this is the key first stage of this crypto project, and the directive is coming from the very top... Jeff Bezos himself. "https://t.co/vyAvu0CPc2
- Will Clemente (@WClementeIII) July 25, 2021
The pseudonymous crypto trader "Altcoin Gordon" (@AltcoinGordon) expects Bitcoin to develop particularly bullishly this week: he expects BTC to rise to 72,000 dollars in the next few days! This would mean that the next phase of the Bitcoin bull run has officially begun.
If Bitcoin clears $35k today, we should got $72k next week. Simply judging by RSI and Bollinger bands, 43% of the time this plays out every time.
Professional trader Michael van de Poppe also believes that Bitcoin's strong rise will also affect altcoins in the short term. They have already been swept up by Bitcoin's movement: The fifty largest cryptocurrencies are almost all seeing green, and top coins such as Cardano, Chainlink or Dogecoin are even leading the price charts with medium double-digit percentage gains.
It remains exciting to see how Bitcoin and the aggregated crypto markets develop following the explosive movement. Will the gains fizzle out again in the coming hours and days? Or will Bitcoin actually rise to six-figure prices in the coming months, as on-chain analysts predict?
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