Bitcoin’s rally yesterday allowed it to erase virtually all of the losses that resulted from its mid-March meltdown
This movement did more than just boost its technical outlook, as it has also bolstered BTC on multiple other fronts
One analyst is also noting that this was a “spot dominated” movement, meaning that it may actually prove to be highly sustainable
Bitcoin saw a massive rally yesterday that allowed it to erase virtually all of the losses that were incurred during the mid-March meltdown, with BTC nearly climbing back up to its 2020 highs in a fleeting overnight upswing that led it to $9,500.
Analysts are now noting that this rally was both impressive and significant for multiple reasons, including the fact that data now shows that it was almost entirely driven by retail investors making spot purchases.
This movement also allowed BTC to reclaim a key adoption curve, while also decoupling firmly from the traditional markets.
Bitcoin’s Rally Driven Primarily by Spot Purchases
At the time of writing, Bitcoin is trading up is trading up just under 7% at its current price of $8,840.
This marks a massive climb from recent lows of $7,700, and a slight decline from its overnight highs of $9,500.
The firm rejection at these highs signals that the crypto does have some heavy resistance laced within the mid-$9,000 region, and bulls will need to firmly surmount this if they want to make a bid at pushing BTC into the five-figure price region.
One important factor to be aware of is the fact that this movement was driven by retail buyers, which is elucidated while looking towards the crypto’s open interest hitting an all-time low – a sign of inactivity amongst margin traders.
Mohit Sorout, a partner at Bitazu Capital, spoke about this in a recent tweet, explaining that this movement was a “spot dominated ripper.”
“Bitmex OI hits a new All Time Low. This BTC rally was purely a spot dominated ripper. Incredible,” he explained.
Image Courtesy of Skew
BTC Rally Results in Greater Fundamental Strength
One analyst recently explained that he believes there are multiple other positive results of this uptrend beyond it simply boosting the crypto’s technical strength.
He points to three primary results of this recent movement, including it allowing the crypto to decouple from the traditional markets, outperform Ethereum, and climb back above its adoption curve.
“I am very, very, very impressed with the move in BTC today for a variety of reasons. 1) First sign of decoupling from gold and the SP500 2) ETH lost value vs BTC & broke down a TL. 3) We are back above the adoption curve TL,” he noted.
These factors, coupled with the spot buying that drove this movement, could be enough to propel BTC significantly higher.
Featured image from Unsplash.
Source: Bitcoinist News