Bitcoin Price to $9k ‘Inevitable’ But What Will Confirm the Next Big Uptrend?

  • Jump in BTC price resulted in Bitcoin futures recording $25 billion in volume, OI surged 15% to reach $3.5 billion & options volume on Deribit Exchange spiked 500%
  • Crypto Twitter feeling very bullish, a vast majority think 2020 high will be above $20k
  • “New year, new money, (or) new enthusiasm,” what got the altcoins going?

Yesterday BTC jumped about 10% to cross the $8,900 level. Altcoins, however, pumped harder than Bitcoin.

While former hedge fund manager Mike Novogratz isn’t sure what brought on this altcoin rally, if it was “new year, new money, (or) new enthusiasm,” It could just be the lack of liquidity in altcoins or “closely held BTC forks” that makes it very easy to pump them and drag the entire market up. Saifedean Ammous, author of The Bitcoin Standard notes,

“Altcoins have approximately zero liquidity, so when Bitcoin starts to rise, it only takes a little bit of money seeking “diversification” to make altcoins rally. As alt liquidity rises & their numbers swell, the effect dissipates.”

However trader Josh Olszewicz says for Litecoin (LTC), EOS, Zcoin (ZEC), and Ethereum Classic (ETC), it was a matter of technicals. Six month accumulation period after two-year downtrend combined with growing bullish divergence on RSI for most of the higher caps, and favorable trend metrics (Cloud/EMAs) drove the price up.

Volume Jumped Across the Board

Although the world’s leading cryptocurrency couldn’t sustain this level, along with price the volume across the board saw a substantial jump too.

According to crypto analytics firm Skew, Jan. 14 was the most active session of the year for Bitcoin futures. It has actually been the busiest one since Oct. 26. The company recorded over $25 billion in Bitcoin futures trading volume.

When it comes to open interest, it surged 15% to reach $3.5 billion on all the bitcoin derivatives exchanges combined.

The options volume on Deribit Exchange, the dominant force in the bitcoin options sector, saw an increase of 500% yesterday.

Crypto Twitter is Feeling Very Bullish

Bitcoin’s 10% rally in a day and nearly 19.50% gains YTD have turned the Crypto Twitter extremity bullish as can be seen in the result of the poll run by economist and trader Alex Kruger.

Over 47% of the 4,079 respondents think the high of 2020 will be above $20,000. It is followed by the $14k to 19k and then below $11,500.

The bracket price of $11,500 to $14,000 that received the least votes, 10.5%, is however, Kruger’s personal educated guess, the level he sees BTC topping this year.

What’s to Come?

After climbing to $8,900 yesterday, Bitcoin is currently trading at $8,747. As Bitcoin takes a rest with volume dragging down, altcoins have started cooling off as well.

According to investor and trader Josh Rager, $9,400 is the significant area for BTC to take as it held support for June-Sept. range. The next important level is $10,350 which is the point of control. At this price point, the highest volume was traded from May to Dec. He said,

“Breaking $10,350s, IMO, will confirm next big uptrend with 5-digit BTC for months to come.”

Meanwhile, trader CryptoSqueeze believes $9k is coming.

“BITCOIN CANT STOP WONT STOP. I think 9k is inevitable at this point. Back in my long. I’d be more concerned of not having a long than trying to time the dip.”

While many are still bullish…

Some are not feeling this rally…

The rally had BitMEX registering its highest daily funding rate yesterday since 11/6 but analyst Rptr45 notes, this was where “it subsequently sold off ~20% in the next 20D.”

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Author: AnTy

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