These are very positive days in the crypto market, as the price of Bitcoin rises without stopping reaching 55k, and dragging many other cryptocurrencies with it.
At the time of writing, BTC is trading at $ 53,780.06, slightly correcting after reaching a local high of $ 55,555.00. In the last 24 hours it accumulates a gain of 7.13%, while in the last 7 days the rise is already 27.65%.
If you have followed our recent posts you have managed to anticipate what is currently happening. And it is that the behavior of the price and the fundamentals behind it, were already telling us that a rise was the most likely to occur.
These were the catalysts for the rise
What generated the force to start the momentum was a large cascading liquidation of short orders, seen on October 1st. A total of 47,000 million were settled, the equivalent of 1,200 BTC.
Also known as short positions, these are executed by borrowing BTC and selling it immediately. Then it is about buying lower to make a profit on the difference in entry and exit price.
But when the price turns against, then those who were trying to make a profit in the event of a drop are forced to buy BTC as quickly as possible to replenish the loan, adding fuel to the bullish fire. This is what happened on October 1, and it happens frequently.
BTC liquidations that occurred on October 1st. Source: CryptoQuant.
Although this type of trigger is a good start, it really is not a good base for a sustained climb.
However, now it is the whales who are generating the continuation of the ascent. This creates a good cushion in case a setback develops.
A Ki Young Ju review shows us how someone bought $ 1.6 billion in BTC, through market orders in just 5 minutes. It means that the rally is being supported by strong hands and not by cascading sell-offs.
Bitcoin price technical analysis after hitting 55k
Today from the daily chart we note the great upward force of the last 3 days, with a price that just needed to go back just a little to give way to a new momentum.
Clearly the trend is bullish, and the 8 EMA and 18-day SMA moving averages are following this direction. These moving averages are currently quite far from price, which tells us that short-term momentum is quite developed, and a pullback may occur soon.
However, as I often say in my posts, it is not a very good idea to expect a drop when the price is fully bullish. If a setback occurs, fine, but you don’t have to sit around and wait for it.
After surpassing 55k, now the price of Bitcoin has the ground clear to $ 56,578, so it is feasible that we will first see this resistance being reached, before a correction begins.
On the weekly chart, the outlook is even more bullish, because after breaking the resistance at $ 52,663, the ground is now clear to $ 58,968.
Also, if we consider that we are seeing the development of long-term momentum, then it is not unreasonable to think of a new all-time high quite far from the current one.
The price of Bitcoin exceeds 55k. Technical analysis of the weekly BTC vs USDT chart. Source: TradingView.
All our publications are informative, so in no case should they be followed as investment advice.