Bitcoin Price Hits 2-Month High at $8.7K as 3 Bullish Factors Converge
The momentum from a week of gains continues, taking BTC/USD to its highest since November as altcoins gain as much as 45%.
Bitcoin (BTC) surprised traders and analysts alike on Jan. 14 after BTC/USD broke out of its already bullish channel to strike at resistance levels near $8,600.
Cryptocurrency market daily overview. Source: Coin360
BTC climbs 2% in an hour
Data from Coin360 and Cointelegraph Markets showed Bitcoin jump 2% in just over an hour on Tuesday to hit local highs of $8,745.
A slight retracement followed, with the pair circling $8,700 at press time amid heightened volatility.
Bitcoin 1-day price chart. Source: Coin360
The latest leg up brings Bitcoin’s 24-hour gains to almost 8%, the largest cryptocurrency remaining at levels previously thought to harbor considerable resistance.
As Cointelegraph reported on Monday, veteran trader Tone Vays was among those anticipating further gains, claiming over the weekend that BTC/USD faced little pushback until an area around $8,800.
Vays nonetheless added that not all indicators were flashing bullish, with derivatives giant BitMEX’s funding rate forming a notably uninspiring exception.
Others were slowly turning on their previously more hawkish stance. Regular Cointelegraph contributor filbfilb also began the week on a more buoyant footing.
“Maybe some chop sideways and a bit of a backtest but everything is there to make me overall bullish,” he summarized in a tweet on Sunday.
Supporting Bitcoin’s newfound strength are various factors, including healthy volume and open interest on multiple futures products. As noted by revered Bitcoin trader Murad Mahmudov on Monday, the combination of price, volume and open interest signal a uniquely bullish setup.
Bitcoin SV jumps 45% as altcoins awaken
Beyond Bitcoin, major altcoins also reacted to the momentum, with Ether (ETH) gaining 8.1% to break $155.
Ether 7-day price chart. Source: Coin360
Out of the top twenty cryptocurrencies by market cap, however, Bitcoin SV (BSV) firmly led the charge, gaining a surprising 45% on the day to trade at $234. Fellow Bitcoin fork Bitcoin Cash (BCH) gained 22% over the same period.