On Oct. 13, Bitcoin (BTC) was back at $57,000, following a classic move that saw $200 million in profits for hopeful traders.
Trader sees parallels to August price action
Data showed BTC/USD reaching highs of $57,250 on Bitstamp, up almost $3,000 in under three hours.
Bitcoin surged 5.5% on the day, building up a rematch of five-month highs, reminiscent of numerous similar rallies over the previous week.
Those hoping to short beyond $54,260 were therefore disappointed amid a flood of bullish sentiment.
“This Bitcoin downturn is quite similar to the market behaviour in August,” Michal van de Poppe said.
“For a few days, there will be a minor pullback, following which Bitcoin will continue to rise. While altcoins in the $BTC pair are falling.”
During the retracement, Rekt Capital, a fellow trader and analyst, verified a higher low for BTC/USD, setting it for future gains.
Futures open interest explodes over 70%
Meanwhile, data from derivatives shows that CME Bitcoin futures open interest has soared in the last month, adding to the reasons to be optimistic about price movement ahead.
Despite the fact that the trend is still below all-time highs set in February, experts believe it is positive, given the possibility of traders anticipating US approval of a futures-based exchange-traded fund (ETF).