Bitcoin Breakout: Price Jumps $1K in 60 Minutes
Bitcoin rallied over $1,000 in an hour this morning, having spent a better part of the last two weeks trading sideways.
Bitcoin rallied over $1,000 in an hour this morning, having spent a better part of the last two weeks trading sideways in a narrow price range.
The cryptocurrency clocked a two-week high of $8,055 soon before press time and is currently trading at $7,850, according to CoinDesk's Bitcoin Price Index. The move marks a 13 percent gain from the previous day's close of $6,939.
It appears short liquidation or unwinding of short (sell) BTC trades has played a big role in the sudden rally, according to some sources.
The cryptocurrency picked up bids at $6,766 at 07:00 GMT and scaled the $7,000 mark at 11:00 GMT – a move that seems to have triggered stop losses on short trades, as reported by WhaleCalls.
Further, technical buyers may have jumped in as the move above $7,000 also marked an upside break of the falling wedge pattern.
It's worth noting that, while it took two hours to move from $6,766 to $7,000, the next $1,000 jump happened in just 45 minutes.
The speed of the ascent should not come as a surprise as wider the range and the longer the duration of the consolidation zone, the more violent a breakout tends to be.
For now, it appears bitcoin's period of consolidation has ended with a notable bullish breakout. Next, a move to $8,500 cannot be ruled out if the cryptocurrency closes (as per UTC) above $7,510, confirming a bullish double bottom breakout.
Hot-air balloon image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.