The Probability of Bitcoin Rising Above $10,000 BTC/USD by September Rises 7% in Just a Week
For the first time in a year, Bitcoin and most of the tokens rose above their 200 DMAs. Bitcoin surged more than 21 percent to $5,051 in the past 48-hours while altcoins like Bitcoin Cash (BCH) doubled during this period while others made significant greens.
Though some experts believe, we would be seeing a drop in Bitcoin price before it starts surging upwards again, others see BTC aiming for $6k now. With the volume rising as well, the probability of Bitcoin going above $10,000 by September that is in the next five months has risen 7 percent from 4.2 percent last week to the current 11 percent, reported Zerohedge.
Bitcoin and cryptos are still keeping up with their impressive ascent as BTC is up over 2 percent in the past 24-hours while Bitcoin Cash has reached to 4th spot by market cap with 24 percent surge at the time of writing, as per Coinmarketcap.
Litecoin is nearly up 10 percent and Doegocin by 30 percent that took total market cap to $175 billion.
Talking about what catalyzed this surge, it could just be a technical move as experts have suggested or just the demand and supply of the crypto market that is driven by people.
Now, addressing this issue, the crypto derivatives traders from sk3w.com platform, looked at the internals of the move and concluded this surge of BTC to four-month high appears to have been driven by a very large short squeeze in a low liquidity backdrop.
Pointing out the specificity of the situation, they say when the most of the upward move took place between 5:30 to 6:30 am London time, almost $550 million of buyer order liquidations took place on Bitmex in a time period of just an hour.
Bitmex is the largest futures platform that accounts for almost 14 percent of the Bitcoin trading volume at the moment, as per Coinmarketcap.
To put this move into perspective, the above graph shows the liquidity activity on Bitmex exchange in the past three months. The action shows someone got spooked and was forced to cover their position.
Additionally, the derivatives traders of the Sk3w also observed that on April 2nd, when it all started, was the largest session of the year for not only the BTC market but also the perpetual swaps as well. Perpetual swaps are the most liquid instruments of BTC where Bitmex and Bitflyer each traded more than $5 billion.
Recently, Reuters also reported that a mystery buyer had worked as a catalyst for this surge. Apparently, a single order of worth about $100 million has been arithmetically managed across three cryptocurrency exchanges viz. Kraken, Coinbase, and Bitstamp in about 20,000 BTC.
It has also been reported by the chief executive of crypto firm BCB group, Oliver von Landsberg-Sadie that the volume on each of these three exchanges has been
“in-concert, synchronized, units of volume of around 7,000 BTC in an hour.”
Whether it was a massively forced squeeze that tripped the derivative market or a major order by an anonymous buyer, Bitcoin has taken a flight to $5k and now it’s to be seen what will be the next stop for BTC.