Bitcoin was mostly trading sideways over the last twenty days. Price action made many traders lose interest in the crypto market as the asset failed to perform according to several bullish predictions at the start of the month.
However, trading action over the last 23 hours sparked hope and renewed interest. It opened the intraday session at $19,332 and peaked at $20,418. While many are in the dark as to what influenced the price others rejoice as BTC is looking to record its first 4% increase since September 22.
There are several speculations as to what caused the sudden rise in price. Nonetheless, they all point to fundamentals. Today, Rishi Sunak resumes office as UK’s new prime minister. He as shown his love for the apex coin as well other cryptocurrencies.
In response, most major crypto assets are up by a few percent and the apex coin is the biggest beneficiary. Yesterday, another story that made rounds was that big exchanges are stocking up on BTC. Could this mean more price increases for the asset?
Bitcoin Sees Change in Trend
Over the last three weeks, the trend was a bullish start and sideways trading afterward. However, the pattern seems to have changed. The previous intraday session was a red candle as the apex coin lost a few percent.
Many feared a massive correction following this change. Nonetheless, a previous outlook noted that BTC retested its 50-day Moving Average. It may be a sign of more price increases ahead. Price action during the present intraday session is proof of this playing out.
The analysis also pointed to the Relative Strength Index as one of the bullish indicators. The metric is at 58 in response to the most recent increase in buying volume. The 12-EMA continued its uptrend as well.
If the uptrend continues, one of the key levels to watch is the $22k resistance. Currently above $20k, based on price movements, we may expect a retest of the highlighted mark before the end of the present week.
A change in trajectory could send bitcoin as low as testing the $19k support. The most recent state of the spot market also reflected in derivatives. We observed a sudden increase in the REKT funds as the bears recorded massive losses.
The total REKT funds exceeded $700 million as the market picked momentum. Of all these figures, short positions make up more than 70%. Bitcoin had the highest liquidation as it saw most of the open interests.
