Three Reasons Why Bitcoin Is Rallying Close to $52,000
On September 5, the flagship cryptocurrency, Bitcoin, rallied from the $50,300 area, adding $1,000 in a long green candle. Here’s are likely reasons that drove BTC above the do-or-die resistance threshold.
Altcoin rally led by Ethereum
The price Bitcoin managed to close the weekend with was $51,911 and it was the highest level BTC reached since mid-May.
Data provided by the Santiment on-chain analytics agency shows that one of the triggers for this rally is the surging interest in altcoins that have also been rallying recently and some of them outperforming the king crypto Bitcoin.
📈 #Bitcoin closed out the weekend with a jump to $51,911, its highest price since May 12th. The rising interest on the more volatile and (mostly) higher gaining #altcoins has allowed $BTC to slowly & steadily grow as short-term traders #FOMO elsewhere. https://t.co/mnyKU7gjj8 pic.twitter.com/l3yR0Rq9f8— Santiment (@santimentfeed) September 6, 2021
One of those coins that have surpassed Bitcoin is the second biggest cryptocurrency – Ethereum. On September 4, Ether managed to briefly top the $4,000 level, reaching a 3-month high, and then fixed in the $3,900 zone. From the start of the year, Ethereum showed a growth of approximately 312 percent to the all-time high of $4,362 it hit on May 12.
Meanwhile, Bitcoin rallied around 121 percent since early January to the all-time high of $64,863 reached on April 14.
At the moment, though, Bitcoin is still almost 20 percent below its all-time high.
Bitfinex whales aren’t shorting BTC
According to the data from CryptoQuant analytics vendor, at the moment cryptocurrency whales on Bitfinex exchange are not opening a large number of short positions.
A CryptoQuant-verified analyst highlighted mentioned that crypto whales were massively opening shorts on Bitcoin when the leading cryptocurrency rose from $33,000 to $40,000 as if they expected BTC to dump after hitting resistance at $40,000.
After Bitcoin went down to $29,000, whales started closing all their short positions, expecting no further drop of the price, according to the CryptoQuant author. No, only a small amount of shorts has been opened as Bitcoin is rallying above $51,000.
"Bitcoin are bullish when Bitfinex whales don't stack up shorts" by @InvestorGantengRead more in Quicktake👇https://t.co/qRzdHkW74l— CryptoQuant.com (@cryptoquant_com) September 6, 2021
Disappointing jobs figures
The jobs report released on Friday by the U.S. Labor Department showed that employers had provided only 235,000 jobs versus 725,000 expected. This means that the Fed Reserve is unlikely to withdraw its tapering initiative and will continue to drop “helicopter money” on the US economy.
US stimulus programs already pushed Bitcoin up back in 2020 and the continuation of them keeps fueling the Bitcoin rally now.Source