Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Bitcoin price surged above $44,500 for the first time since January 5th, as buyers seek to close out above $45K to validate a bullish trend.
Bitcoin (BTC) bulls have managed to raise the price of the leading digital currency back to the $44K support level, aided by positive events. Most notable is the recent announcement by the Canadian arm of accounting giant KPMG, that it has added BTC and ETH to its corporate treasury. Also, electric vehicle maker Tesla Inc disclosed in a recently-filed 10-K that it held approximately $2 billion worth of BTC at the end of last year.
John Iadeluca, founder and chief executive officer of multi-strategy fund Banz Capital commented on this trend saying:
“Tesla’s 10K SEC filing update was released yesterday, reaffirming notions that Tesla held onto their BTC holdings amidst declines in Bitcoin’s price to the lower 30 thousands. Combined with the news of KPMG Canada adding Bitcoin onto its balance sheet, encouraged a sharp rise in positive Bitcoin price sentiment.”
Following this, BTC buyers are beginning to feel more optimistic about the crypto, and now look to further hike its price above the $45K level. This is because the general assumption is that any price above $45K likely validates and indicates a bullish trend reversal.
According to data from Cointelegraph Markets Pro and TradingView, BTC price ranged around the $42,500 price level early February 7th. However, during midday trading, sustained bullish action raised the crypto’s price to a high of $44,500. This price surge was significant enough to compel short traders to swiftly close out their open positions.
Some Mixed Reactions to Recent Bitcoin Price Push
BTC’s sudden rise to $44,500, its highest since the first week in January, has sparked a series of reactions from market watchers and traders. On the one hand, several crypto holders opine that another sustained bull rally may be in the works. Meanwhile, the veteran traders, including the pseudonymous Twitter user Pentoshi, are taking advantage of the opportunity presented. This entails taking some profits off the table as well as repositioning themselves for what the future holds. As Pentoshi put it:
“Taking the last highs now. Looking for one last spike up but $44,000–$46,300. In my opinion, good spot to close longs out and re-evaluate.”
Despite BTC’s renewed sense of positive pricing, some traders remain bearish on the leading crypto. Bitcoin analyst and Twitter user Allen Au posted a graph illustrating the latest price action’s impact on the futures markets. There was a $71 million liquidation in Bitcoin shorts which followed a decrease in open interest. Au explained this as a “short squeeze” that could most likely keep supporting an increase in price. He also further stated that:
“Perpetual futures funding rates are negative despite BTC breaking above $44K. Traders are still bearish about BTC.”
Au also highlighted the next major resistance levels for BTC at $44,500, $46,500 and $47,500.
Josh Olszewicz, head of research at Valkyrie Investments, also touched on these developments. He stated that crypto derivative funding rates still pointed negative despite rising prices and open interest.