Yesterday’s BTC price rally saw its price increase by a massive 9% over the past 24 hours of trading as the king crypto surged to a high of around $7,250. It has since dropped lower but is battling to remain above the $6,800 level, with current prices at $6,918 at the time of writing.
Typically, BTC price tends to see overextended price movements due to the accumulation of its volume in the futures market. This certainly seems to be the case according to recent data from Bitwise Asset Management, which highlights that the 24-hour spot volume of BTC was about $1.5 billion.
The steady upsurge in buying demand over the last 24 hours started to squeeze BTC shorts, compelling investors to market buy and adjust their positions. The squeeze continued on past $7,000, bringing the price of BTC to $7,300 on Thursday in quick succession.
What Triggered The latest BTC Price Rally?
The continuing rise in the price of Bitcoin since low $6,000s in mid-march has largely been led by mounting spot volume and demand.
According to a recent report, top crypto exchange Coinbase revealed that retail investors increasingly bought the dip following Bitcoin’s crash to $3,600 on March 12.
“Our customers typically buy 60% more than they sell, but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility,” said Coinbase.
If this BTC price rally is to sustain its current short-term momentum, the number one crypto would need to see a slow grind upwards following yesterday’s swift surge to $7,300.
So What Next For the King Crypto?
The recent 4-day price upsurge has helped the price of BTC roll back some of its losses suffered during the first three months of 2020.
If Bitcoin can actually close the week above $6,800, this should set up a fantastic two weeks ahead as it would be breaking a consolidation pattern that has trapped the cryptocurrency since the “black Thursday” market collapse.
The next important resistance is close to the $7,200 mark, beyond which the price is likely to surge past the recent Thursday high of $7,273. Any additional gains could then lead the price rising towards the $7,500 resistance level.