Did you catch the Bitcoin drop? Bitcoin’s price has recovered some of its losses with a new surge to $57,500.

 190 Interactions,  2 Today

The downside does not last long, as Bitcoin price action quickly returns to mid-May levels.

Bitcoin (BTC) was back at $57,000 on Oct. 13 after a classic move resulted in a $200 million loss for hopeful traders.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader sees parallels to August price action

Data from TradingView showed BTC/USD reaching highs of $57,250 on Bitstamp, up almost $3,000 in under three hours.

Reminiscent of multiple surges over the past week, Bitcoin thus gained 5.5% on the day, lining up a rematch of five-month highs.

Those looking to short further than $54,260 were thus disappointed amid a barrage of bullish optimism.

“This correction on Bitcoin is nicely comparable to the price action in August,” Cointelegraph contributor Michaël van de Poppe commented.

“Just a minimal correction for a few days, after which Bitcoin continues grinding upwards, while altcoins are dropping in their $BTC pair.”

Fellow trader and analyst Rekt Capital meanwhile confirmed a higher low for BTC/USD during the retracement, thus positioning it for further strength.

Futures open interest explodes over 70%

Meanwhile, data from derivatives showed CME Bitcoin futures open interest skyrocketing over the past month, further fuelling cause to be positive on price action ahead.

See also  Why chief investment strategist at Bank of America says bitcoin gains unlikely to last

While still below all-time highs set in February, the trend is encouraging, according to commentators, given the possibility of traders aheadrunning a potential futures-based exchange-traded fund (ETF) approval in the United States.

Bitcoin futures open interest chart. Source: Javier Paz/ Twitter

“The herd is not just coming, they’re stampeding,” Three Arrows Capital CEO Zhu Su added on the data from Forbes analyst Javier Paz.

Subscribe to our newsletter

Loading

Leave a Reply

Your email address will not be published. Required fields are marked *