Bitcoin surged above the $28K threshold yesterday, marking its highest price since the middle of August. Analysts believed ETF optimism and seasonality are a few reasons behind the gains.
Traders at Japanese exchange Bitbank were previously eyeing the $28,000 level for Bitcoin last week and $28,500 could be a key price level to watch for in the coming weeks as it potentially flips into a level of resistance, according to CoinDesk.
Amid the market euphoria, Ethereum (ETH) also rose to over $1,700, Binance Coin (BNB) and Cardano (ADA) rose 3.3%, while MATIC increased 5.5%. Solana’s SOL led major gains at 14.5%, mainly due to optimism for the network among some traders. SOL’s market cap and 24-hour trading volume surged by 13.68% and 131.52%, respectively.
This increase reflects growing interest and adoption of the Solana blockchain, as more users secure their valuable assets on the network. Market capitalization and trading volume growth also imply that SOL tokens are in high demand, contributing to their price increase.
According to CoinDesk, short liquidations on crypto-tracked futures may have contributed to the rise in Bitcoin and Ether. Data shows that $94 million in bets against rising prices were impacted on Oct 1, creating a “short squeeze”, which occurs when there is a lack of supply and an excess of demand for the stock due to short sellers having to buy stocks to cover their short. Some 30,000 bearish bets were liquidated with most liquidations taking place on the OKX crypto exchange.
Samer Hasn, market analyst at XS.com said these gains come with the bullish impression that characterizes the month of October in general. Bitcoin has not recorded monthly losses in October since 2013 except twice, which prompted this month to be called “Uptober” within the crypto community.
Last week, the crypto market was excited as participants expected a short-term increase in demand because ETH futures trading fund was officially released by financial giant VanEck. Some analysts predict a 90% chance of the ETF being approved in the first week of October.
“We believe $30,560 is the next milestone for Bitcoin. Surpassing this level could mean rapid gains for the leading cryptocurrency,” the expert predicted.
Interestingly, the AI tools are forecasting that the price of Bitcoin will hover around $30,403 come October 31, breaking above the $30,000 resistance.