Bitcoin Back To $64K? Why This Time The Bulls Have The Winning Edge
Bitcoin remains range bound in lower timeframes trading at $54,277. The first cryptocurrency by market cap records almost no gains in the daily chart, but a massive 23.9% in the 7-day chart.
The general sentiment in the market has flipped bullish, as investors seem to be waiting for further appreciation in Q4, 2021, a period that usually works for the bulls. Investment firm QCP Capital believes BTC’s price recent returned to the mid $50,000 was due to a “short squeeze”. Triggered by a high number of liquidations in short positions, the big move to the upside has its origin on Chinese crypto exchanges.
In addition, QCP Capital found that institutions were behind Bitcoin reclaimed of the $50,000 as evidence by the uptick in the Chicago Mercantile Exchange (CME) open interest and the increase on the premium for these derivatives versus the price of BTC in the spot market. QCP Capital claimed:
The unusually large premium indicates an overwhelming amount of outright buying. Both factors combined lead us to believe that there has been large institutional buying of BTC in the past week.
Additional factors seem to have worked out in favor of the Bitcoin bulls, as noted by the investment firm: the dissipation of uncertainty around Chinese real state company Evergrande, the very likely approval of a BTC ETFs based on CME Futures, BTC gaining more prestige as an investment vehicle, and others.