Short sellers walked out after a good week. Moreover, traders hoped a few encouraging remarks from important investors could herald a turnaround in a fragile atmosphere. Cryptocurrencies surged to the top of recent ranges on Monday. Due to short-sellers bailed out in the aftermath of an intense week.
The Rise of Bitcoin
During the Asia session, bitcoin surged 12.5 per cent to $39,850, its best since mid-June. Ether also touched a three-week high of $2,344. On the heels of bitcoin’s most decisive week in over three months, the rise put the squeeze on short-sellers.
Elon Musk, the CEO of Tesla and a cryptocurrency aficionado, indicated last week that the company would likely start taking bitcoin after researching its energy usage. It had halted such payments in May, contributing to a significant fall in cryptocurrency prices.
Last week, Twitter CEO Jack Dorsey claimed that bitcoin is a “big part” of the company’s future. In addition to that, the City A.M. newspaper in London reported on Sunday that Amazon is planning to accept bitcoin payments.
Brokers said the comments, taken together, was enough to raise the market from the support floor, where it had been stuck since a May fall, while data also showed large, short-seller liquidations, implying that so many have surrendered.
Ryan Rabaglia, global head of trading at crypto platform OSL, said:
“Over the last five trading sessions, we’ve seen general near-term bullishness in the market, driven by key technicals, as well as recent positive comments. With a record $1.2 billion in shorts liquidated over the past 24 hours, the outlook and momentum for the week ahead are positive.”
The Weekly Summary
Bitcoin was recently up 8% at $38,064. This brought it within striking distance of resistance around June’s $41,341.57 high, barely a week after hitting support at $29,500. Ether last gained 5% at $2,304.