Bitcoin is soaring after a $ 300- $ 400 correction on Sunday morning. The leading cryptocurrency is currently trading at $ 10,400 as of the time of this article, nearly $ 200 from lows.
This comes after the leading cryptocurrency has closed a near weekly candle above $ 10,000. $ 10,000 has long acted as an important horizontal level for Bitcoin, reaching three distinct peaks last year.
Analysts speculate that Bitcoin's ongoing rally may have legs, although it is very new and relatively small.
One sign that this is the case is the price action of altcoins.
Many altcoins, especially those in the DeFi domain, are surpassing and surpassing the highs they posted before the Sunday drop. This suggests that buyers are apparently re-entering the market in response to strength in the old markets.
Related Reads: Why Does This Crypto CEO Think BTC Will Reach $ 15,000 Soon?
Why Bitcoin Is Preparing For Higher Pressure
One reason Bitcoin is ready to rise is due to the positive trends in the derivatives market. Recently a trader shared Following the Sunday morning drop, the chart below stated that the correction allowed Bitcoin to reach key liquidity zones around $ 10,300:
"As always, where the liquidity levels are. Liquids are taken, the price goes down. We got some liquid again. I can see that coming back from here, or maybe it could drop a little more to 10100. By the way, this move sounds like a classic jolt. Also. If you want to know what a real whale thinks, you must follow this guy. "
Chart of BTC's price action over the past few days with analysis by crypto trader Byzantine General (@Byzgeneral on Twitter). Chart from TradingView.com; custom indicators that show liquidity levels from HyBlock Capital.
In addition to the expectations that Bitcoin will recover soon, there are also funding rates. The funding rate is the fee at which long positions pay short positions in the continuous futures market to ensure that the derivative price is at the spot price.
Negative funding rates are now common in the crypto market due to the tremendous selling pressure on derivatives platforms.
This suggests that Bitcoin may jump soon.
Related Reading: This European Crypto Exchange Has Been Hacked For $ 5 Million
Old Market Rally Can Help
A rally in the old market could help the crypto market recover.
Macro analyst and economist Alex Kruger recently shared that there is a macro factor that can quickly launch old markets:
“It could be the suggestive green rocket start of the week. It will be up to the Fed to let the party continue starting Wednesday. A large number of IPOs this week could help boost the risk appetite. "
Bitcoin can rise if stocks rise.
There may be an obscene green rocket earlier in the week. It will be up to the Fed to let the party continue starting Wednesday. Several IPOs this week could help increase risk appetite.
– Alex (@classicmacro) 14 September 2020
Related Reading: "It Makes Sense" For Ethereum To Reject At Current Prices: Here's Why
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Does Bitcoin's Ongoing Rally Have Legs? Here's Why Analysts Think It Does