Key Reasons Why Bitcoin Just Jumped to $10,700

News
Thu, 09/24/2020 - 17:20
Alex Dovbnya
Bitcoin has just witnessed a major short squeeze that caught bears off guard
Key Reasons Why Bitcoin Just Jumped to $10,700
Cover image via stock.adobe.com
Contents

Bitcoin, the top cryptocurrency by market cap, soared to an intraday high of $10,726 at 16:01 UTC on the Bitstamp exchange after a sudden short squeeze.   

By rallying almost four percent over the past few hours, BTC has now bounced back from its Sept. 23 drop to the $10,200 level.

It is now changing hands at $10,633 after erasing some of its gains. 

TV
Image by tradingview.com

Bitcoin, gold, and stock see a mild recovery

Cryptocurrency trader Scott Melker notes that Bitcoin’s RSI bullish divergence gave a clue about the most recent upward move. 

The bellwether cryptocurrency also once again showed its correlation with legacy markets with its mild recovery.  

Gold has pared its today’s losses, currently trading in the green. The yellow metal had three consecutives days in the red due to the soaring dollar index. 

The S&P 500 is now also up by a modest 0.34 percent after erasing all 2020 gains during today’s trading session. The benchmark equities market index will enter a correction if it closes below 3,222.

Related Peter Brandt Exits Bitcoin and Stocks, Turns to U.S. Dollar
Related
Peter Brandt Exits Bitcoin and Stocks, Turns to U.S. Dollar

One year since Bitcoin’s epic plunge    

Despite soaring four percent, Bitcoin is yet to gain foothold above the pivotal $11,000 level ahead of the widely anticipated quarterly expiry of option contracts that will take place tomorrow.

While the bulls might be still on shaky grounds due to the strong dollar, they are certainly in a much better place than they were one year ago.

According to OnChainFX data, BTC is currently trading 10 percent higher on the year-over-year basis. On Sept. 24, 2019, the top coin ended up collapsing to $7,900 following the breakdown of a major descending triangle.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.