Why Bitcoin Price Just Surged to $7,000 Ahead of Weekly Close
Ahead of the weekly candle close in approximately eight hours, Bitcoin has embarked on a slight rally higher, retaking $7,000 just minutes ago as of the time of this article’s writing. With this, the cryptocurrency has rallied some 3.5% from the weekend low, but remains 7% below last week’s local high at $7,470.
Analysts suggest this move is related to normal crypto market dynamics whereas Bitcoin fills the gaps created on the CME’s BTC futures chart, and also due to the fact that investors in all markets are broadly optimistic heading into the coming week. As popular crypto trader Filb Filb explained in his Telegram channel:
“Everyone so bearish at the moment… It’s like they forgot the CME market closed [at] $7,300 and the weekend is classic [chicanery] + we are correlated to stonks and they haven’t dumped.”
Reports indicate that upwards of 95% of CME Bitcoin futures gaps eventually fill, adding credence to the ongoing bull rally in Bitcoin.
Bitcoin Could Soon Rocket Even Higher
While this move has just begun from a time-based perspective, analysts expect Bitcoin to rocket higher over the coming days.
One trader, for instance, shared a chart indicating that BTC is currently in a bullish position as it managed to hold the key support around $6,800 for a number of candles, suggesting it has bottomed in the short term.
Should BTC follow the trader’s expected trajectory, it will hit $8,000 in the coming three days, which would mark a 14% rally from the current levels.
Market data corroborates this trend playing out. Mohit Sorout — a partner at crypto hedge fund Bitazu Capital — remarked that it will “soon” be time for Bitcoin to “pop,” sharing two charts to back his point.
Although it wasn’t initially clear to most what exactly he meant with these charts, the trader later revealed that what he’s expecting is for Bitcoin to see a short squeeze, whereas leveraged short positions are rapidly pushed out of their trades, causing a strong rally higher as the orders “cascade.”
More specifically, the charts indicate that once Bitcoin returns to the $7,050-7,100 range, there will likely be a cascade of trades closing that could push the cryptocurrency toward its weekly highs of $7,400, maybe even higher.
— Mohit Sorout 📈 (@singhsoro) April 11, 2020
Crypto Demand is Booming
To corroborate these bullish narratives, there is a confluence of signs suggesting that demand for cryptocurrency is booming.
Per previous reports from NewsBTC, Su Zhu of crypto and forex fund Three Arrows Capital observed that on April 10th, there was a massive Ethereum buy wall on Bitfinex. Buyers, in fact, put up a jaw-dropping 250,000 ETH worth of bids between $159 and $162, amounting to a cost of around $40 million.
Furthermore, multiple pieces of evidence — such as web traffic measured by Alexa, anecdotal stories from friends and family, and order book data — suggest that buy-side demand for Bitcoin is starting to ramp up.