Bitcoin went above $47k earlier today as October started with some decent bullish fireworks. The cryptocurrency had been trending upwards in late August and early September but the last month was mostly spent fighting with the bears.
Bitcoin Rises Above $47k
Bitcoin was trading below $44k earlier in the day. However, a few big resistances going forward kept slowing down the cryptocurrency’s advances. But, around 9 AM in the morning, the index started to post a big upwards candle. At first, it teased the $45k level but around midday, the cryptocurrency really started to take off. Now, the digital currency is above $47k and looking increasingly bullish. It reached as high as $47.9k before receding slightly to $47.4k at press time.
Image Source: TradingView
Like always there are multiple reasons behind the sudden jump in the Bitcoin price index. Over $200 million worth of shorts were liquidated in a matter of minutes as the index fell hard. The recent tussle with the bears was also put into the spotlight as many traders warned against overselling during the short-term bearish incursions. The good sign for the bulls is that none of the major price support levels were breached during the month-long bearish bias. Now, it may look to strengthen its hold and post more highs.
Beginnings of a Bullish October?
Bitcoin is looking set for a bullish start to the month. Even though it is just first day of the 10th month, traders are looking upbeat about the immediate future of the digital currency. Many are calling it “Uptober”, a reference to an anticipated bull run in the month. October has historically been quite bullish over the years especially in the year following a Bitcoin halving which 2021 obviously is.
A Weakening Dollar?
The US Dollar has had a big September as it posted record exchange rates against most major currencies around the world. However now, it seems like the greenback is shedding some value. The fiat currency’s weakening has also contributed towards the latest price jump in Bitcoin itself. The Dollar is expected to weaken further as the US announces the new infrastructure package that is worth more than $1 trillion.
The start to October was quite bullish overall but it is still one day’s worth of actions and it may take some time to eventually re-continue the long-term bull run.
Image Source: Adobe Stock