Bitcoin price is thrusting towards $11,700 after weeks of consolidation between $10,000 and $11,000
Bitcoin price has rebounded following a brief selloff seen earlier today that caused it to dip as low as $11,200. BTC’s recent strength has come about due to the confluence of multiple factors that have all been helping to drive it higher. It remains roughly $1,000 below its 2020 highs that were set in August, however, and there’s still a plethora of underwater investors. Data reveals that retail interest in buying Bitcoin seemed to peak on August 1st, which is just one day before the 13% “flash crash” that sent BTC plunging lower.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price rebound after overnight sell-off
BTC has continued to thrust higher, pushing towards $11,700 just minutes ago as of this article’s writing. The leading cryptocurrency has now printed six days of gains in a row, suggesting it is on track for a full reversal of the September losses.
At the press time, Bitcoin is trading up over 2% at its current price of $11,555. This marks a notable surge from recent lows of $11,200 set earlier this morning when bears stepped up and tried to revert its recent uptrend. It is important to note that this slight retrace was short-lived and appears to be what helped spark the latest push higher.
The key resistance to watch now sits at $11,600, as a break above this level would be technically significant and help catalyze further momentum.
Crypto analyst Byzantine General observed that throughout the Summer, retail interest in Bitcoin grew up until August, at which point its price peaked and kicked off its multi-month consolidation phase.
He also notes that the 13% August flash crash that Bitcoin experienced came about just one day after retail interest peaked.
“Retail interest spiked on the 1st of August, the day before that 13% flash crash… BTC whales have no chill. Welcome to the community new bagholders.”
This trend, if it holds strong in the future, could signal that bouts of rallying retail interests precede large selloffs induced by profit-taking from larger investors.
Bitcoin pushes towards $11,700
Bitcoin is thrusting towards $11,700 after weeks of consolidation between $10,000 and $11,000. The leading cryptocurrency is about to hit $11,700, having pushed 3% higher in the past 24 hours alone. Over the past five days, BTC has rocketed from around $10,600 to $11,700, marking a gain of over 10%.
This latest leg higher has resulted in millions of dollars worth of liquidations on futures trading platforms. Skew.com reports that more than $3 million worth of liquidations has taken place on BitMEX’s Bitcoin market alone. As BitMEX only makes up a small portion of the rest of the crypto futures industry, it’s fair to say that millions more were liquidated on other platforms.
According to crypto derivatives tracker ByBt, the funding rates of leading futures exchanges are starting to lean positive across the board for the first time in a number of weeks. This suggests that longs are starting to become more aggressive than shorts. As long as the funding rate remains low, there should not be an immediate concern for long holders.
BTC’s price action over the past few weeks | Source: TradingView
Portions of this rally have been triggered by expectations of another U.S. stimulus bill passing, which would result in the U.S. dollar losing value.
It is important that cryptocurrency investors watch these discussions moving forward to ensure that they have a comprehensive view of Bitcoin’s price action.
You can see the Bitcoin price here.