Bitcoin ‘Spiked’, Short Liquidation Seen
Bitcoin rallied over $1ooo quickly Thursday, on what some are saying is a break North after marking a double bottom.
It appears short liquidation or unwinding of short (sell) BTC trades played a big role in the price spike, according to some sources.
The cryptocurrency picked up bids at $6,766 at 07:00 GMT and move to the $7,000 mark at 11:00 GMT, a move that looks to have triggered stop losses on short trades.
And with that action, technical buyers for the digital currency may have jumped in as the move above $7,000 also marked a Northside break from the falling wedge pattern.
Notably, it took 2 hs to move from $6,766 to $7,000, the next $1,000 jump happened in just 45 mins.
The speed of the spike should not come as a surprise as wider the range and the longer the duration of the consolidation zone, the more violent a breakout usually are.
It now appears Bitcoin’s consolidation frame has ended with a Bullish breakout. Next, a move to $8,500 cannot be ruled out if the cryptocurrency closes above strong resistance at $7,510, that would confirm a double bottom breakout which is a Bullish signal.
Bitcoin is currently trading at, 7,875.5151, +952.56, or +13.76%, as of 1:42a BST, the market is open.