The market value of Bitcoin has been soaring these days, reaching its highest price for about 1 month prior today. This digital currency has gotten to this point as the major cryptocurrency markets experienced gains.
Looking at the Coindesk Bitcoin Price Indicator, we can say that the price of Bitcoin went up to $7,389.26 at 12:00 in universal time (that’s 8:00 a.m. in Eastern Standard Time). Right now, the crypto currency had climbed 2.2% in the market for a day and has achieved its highest price approximately on the same time on Aug 4.
Since Bitcoin strike its highest value in roughly 1 month, a much wider cryptocurrency market obtained an overall value of $240,000,000,000. This data analysis shows a 1.4% increase in the previous 24 hours.
Lately, Bitcoin prices keep pushing higher and continue the rising trend. After cryptocurrency reached its all-time high in the month of December and hit nearly $20,000, it has declined significantly. But on the latter half of August, Bitcoin moved upward and was able to grow above level on strong volume. The cryptocurrency will rise to $8,000 which Bitcoin is rooting for months now. Cryptocurrency market continues to see mixed signals, but has managed to hold gains these days.
Charles Hayter, a crypto analyst and co-founder of CryptoCompare welcomed the current value gains. He described them as positive news and stated it as some sort of reliefs. However, Hayter thought the market is sending mixed signals on how it will behave in the near future. He also noted that the trading pair of BTC/USD has produced an elevated level of short interest on some crypto exchanges.
A blockchain advisor, investor and well-known influencer named as Oliver Isaacs provided similar input as Charles and emphasized unsure nature of the market. He believed that the better stability of Bitcoin’s price for the previous weeks has been invisible for a long time. That is why, people should acknowledge this as a good signal of having more gains to come most especially for the next couple of months. Isaacs also said that the price action indicates an initial phase of growth phase. It will be followed by public participation phase making level past $8,000.
Despite of all potentials for bullish, short interest levels must be watch thoroughly. There is a possibility for short squeeze to happen. Short squeeze is a state wherein severely shorted stock changes abruptly higher. It will force more short traders to close out short positions and will add to the ascending stock pressure. Short sellers will be squeezed out of short positions, commonly at a loss. They are usually triggered by a good development that recommends stock to embark on a turnaround. Though turnaround in the fortune of stock proves to be temporary, only a small number of short sellers can take the risk of huge losses. Some prefer to close out short positions even if it means a large loss.
Bitcoin is trading at $7,355 as of this writing according to Cointelegraph BPI.