The price of Bitcoin which for the past four days has stayed above $11,000 is on course to record the biggest July bullish run at 22 percent since 2012 when prices rose by 40 percent.
According to Coindesk, the cryptocurrency only needs to hold above $11,145 until the close of trade on Friday for its record to be complete. At press time on Friday evening, the price of bitcoin was trading at $11,281.89 on the Coinmarketcap Index.
“It’s been a very interesting few days with all the major crypto assets increasing in value. With bitcoin and Ethereum both reaching new yearly highs, this could mark the start of the bull run that has been promising to take off since the bitcoin halving. However, any optimism should be met with a degree of caution. This wouldn’t be the first time cryptocurrencies have seen a spike in value and the global economic climate still remains precarious,” Marius Reitz, General Manager, Luno Africa told BusinessDay.
The number of bitcoin balances in profit is up by 29 percent from 72 percent seen on 20 July, data from Glassnode shows. The last time more than 90 percent of bitcoin addresses were in profit was July and August 2019, when Bitcoin traded around $11,500.
Analysts at Coindesk say the rally is due to a resurgence of institutional participation and bearish sentiment around the dollar. Bitcoin Futures volume was up by 186 percent to $43 billion on Tuesday, the highest single volume since March 13, according to data source Skew. Daily trading volume on institutional exchange CME rose 570 percent to a yearly high of $1.32 billion; Bakkt registered a record volume of $132 million.
“In order to consolidate its momentum and keep pushing upwards, Bitcoin will need to hold through its current retrace. The recently-broken yearly high of $10,500 can be looked towards as a support zone to hold off any downward pressure. Should this level be broken though, we would find ourselves in familiar territory, with plenty of support to be found between the $10,000 and $9,500 range,” Reitz said.
But the bullish trend looks strong with the bitcoin showing few signs of stress, despite increased miner sales observed earlier this week, say analysts at Coindesk.