Flagship cryptocurrency Bitcoin may be looking to renew its bull run as the coin had a bullish weekend, appreciating almost $6,000 or 17% from Friday’s close of $33,581.55 to today’s high of $39,280.42 according to coinmarketcap. Today alone, the coin has appreciated over 11% in the Asian session.
What is causing the bullish momentum?
The current bullish momentum indicates a violent short squeeze occurring as prices broke above $35,000, and then suddenly accelerated by 11% from roughly $35,350 to $39,280 in less than three hours in the Asian session. Cryptocurrency on-chain analyst expert, Willy Woo had earlier predicted that a short squeeze was coming in his newsletter that was posted on Friday. He explained that a short squeeze was very much in play using indicators such as the OTC Outflow RSI, ASOL (Average Spent Output Lifespan) and the UTXO realized price distribution to explain his points. His predictions appear to be playing out correctly. He however stated that in the short term, Bitcoin needs to clear $36.5K, $41-42K and then ultimately get above its 200-day moving average in other for him to confirm the continuation of the bull run. On his Twitter handle, he tweeted, “And folks, we have our squeeze.”
Another factor could be the ₿ word conference where Elon Musk shilled (a person engaged in covert advertising for a cryptocurrency) Bitcoin touting that he, Tesla and SpaceX own Bitcoin and do not plan on selling any of their coins. He also stated that he believes Bitcoin is pivoting towards renewable energy and Tesla will most likely resume accepting Bitcoin as a means of payment. As of the time of the conference, Bitcoin quickly recovered from trading below $30,000 to $32,000 on that day, representing an 8.75% gain.
Jack Dorsey, the CEO of Square and Cathie Wood, the CEO of Ark Invest were also present at the event and only had good things to say about Bitcoin.
What to expect
Bitcoin has met significant resistance at the $40,000 trading zone. If the resistance holds, Bitcoin could very well be on its way to $25,000 as many analysts have predicted but if it can breakthrough, we may be seeing a renewed bull run that could push the flagship asset above its previous All-Time High (ATH).
Investors are advised to ensure that they monitor its current trading zone and also watch out for FUD (Fear Uncertainty and Doubt) news that in recent times, usually comes up when the cryptocurrency is making a run at a key resistant level. Bitcoin is currently trading $38,300, up 10.67% as of the time of writing this report.