Bitcoin soars to six-week highs: “The bulls are back”

Bitcoin soars to six-week highs The bulls are back
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Strong rises for bitcoin this Monday, following a weekend in the cryptocurrency market has seen new capital flows enter. Satoshi Nakamoto’s creation has surpassed $39,000 for the first time since the beginning of June, up more than 10% in 24 hours and 20% since the start of last week.

“The bulls are back and wanting revenge,” writes Naeem Aslam, head of analytics at AvaTrade, in a note to clients. As for the price action of bitcoin, the expert expects it to exceed $45,000, “and once the price is above that price level, it is very likely that we will see more bullish bets in the market.”

The rest of the ‘cryptos’ are stained in intense green, with increases of 10% for the ethereum or the binance coin or 15% for the dogecoin. The total capitalization returns to recover the 1.5 trillion after they have entered about 250,000 million in the last two days in the concept of investments in digital assets.

Crypto is “just ‘on fire’,” says Aslam. The evidence that proves his claim to the expert came when the price did not plummet last week when it briefly lost the formidable support of $30,000. “It was clear at the time that the bears were completely out of energy, and the only way for the price was to get carried away by the rises,” he says.

Additionally, we also started to see a change in the bitcoin news stream last week as well. One of the biggest developments was that Elon Musk again showed his support for cryptocurrency and pointed to the fact that Tesla would likely start accepting bitcoin again. “Of course, the big question for investors and traders is whether the price of Bitcoin will continue to rise now. And more importantly, will it reach its previous highs?” Rounds Aslam.

AMAZON AND STRANGULATION OF THE SHORTS

In addition to the above, there have been other encouraging headlines for bitcoin. E-commerce giant Amazon is attempting to bring a digital currency and blockchain expert into its payments team, suggesting that it may be looking into bitcoin and other cryptocurrencies further. An Amazon spokesperson said the company is “inspired by the innovation that is happening in the cryptocurrency space and they are exploring what this could look like at Amazon.”

These bullish moves have also contributed to a so-called “short squeeze,” according to bitcoin mining engineer Brandon Arvanaghi.

Investors who go short on bitcoin are betting that the price will continue to fall. But if the price rises, these investors look to cut losses and exit their short positions, which helps drive the price further. “I think the magnitude of the jump was probably driven by excess short positions,” says Ayyar of Luno.

Meanwhile, some of the problems that have weighed on the price of bitcoin have started to clear up. In recent months, China has resumed its measures against cryptocurrencies, targeting mining and trading. And concern about the carbon footprint of bitcoin mining is starting to wane.

Brammer of Luxor Mining said that uncertainty around the environmental impact of mining and Chinese regulatory concerns have “disappeared”.