Christmas may have come early for Bitcoin investors this year as Bitcoin is once again, on the rise.
In the early hours of the morning, Bitcoin just leaped 10% to cross the $7,300 mark. It is currently trading at around $7,340.
After hitting the $7,300 mark, Bitcoin seemed to surpass it quite quickly. Bitcoin could may very well continue to climb quickly just as this change of events began.
Good news for the industry
Over the past four days, the industry has had an amazing surge of good news and positive vibes have travelling throughout the industry and its traders.
So, what’s happened over the past four days?
- Coinbase has announced five new potential coins
- Robinhood has included Litecoin, BCH and Dogecoin for trading
- BitPay has received a BitLicense from NYDFS
- One of the largest asset managers in the world, Blackrock expressed their interest in bitcoin futures
- Coinbase was approved to become an SEC-regulated securities broker
- Korean exchanges pass self-administered exam
Experts who had predicted Bitcoin to surge are now cheering that their prediction has come to light. Not to mention the investors.
The majority of the non-commercials and dumb money were playing heavily AGAINST Bitcoin.
However, some experts who believe that Bitcoin will keep surging predicated that Bitcoin would boom within the 16th – 19th July, which it has. They also think that this is just the start of something special and that the price is going to continue going up before it goes down.
Essentially, it’s going to get better before it gets worse.
One of the reasons why Bitcoin is currently exploding is due to short sellers being forced to close out their short positions in the market.
For those of you who don’t know what a short squeeze is, a short squeeze is when a commodity or a stock, surges higher which forces short sellers out.
Those short sellers who were betting against Bitcoin, the only way they would could close out their position is by utilizing a ‘buy stop’
So, in laymen terms, as Bitcoin is moving higher in the market, it is triggering the ‘buy stops’ of the short sellers which forcing them to closer their short positions making the people who don’t believe in Bitcoin wrong and having no ground to stand on.
Don’t get overconfident
As we all know, the market is delicate so don’t get overconfident, many experts and investors are bullish on Bitcoin and no one knows what the future holds for the cryptocurrency.
Despite this they still believe that this is the start of something special and but we might see a pull back before another major surge.