Despite the sharp correction in the Sunday, last week the price of bitcoin rose almost 10% as the bullish market sentiment and low liquidity have created a perfect environment for its growth.
Avoiding any significant obstacles this past Sunday, September 4, price failed to break the level of$600.
Bitcoin price began a rapid growth with the opening 2 September at 571.68$ and an increase of 5% over the next two days. Despite the fact that digital currencies are not immediately able to overcome resistance at the$ 600 she held the key psychological barrier on Sunday, 4 September, and rose to an intraday high of $612.39 (BPI data). The market sentiment during these two days remained extremely bullish. Exposure to risk on long positions, measured by the number of open positions amounted to 88% on Saturday and 87% on Sunday.
"Bitcoin enjoyed this sharp rise and a bullish mood after several weeks of fluctuations in prices, provoked by the hacking of the exchange Bitfinex," said operations Director Peter Whaleclub Ivkovski (Petar Zivkovski).
According to BPI, in the period from 5 to 7 September, the cryptocurrency was trading between$ 600 and 615$. Bitcoin broke out of this zone on Thursday, September 8, when the price jumped more than 2% and reached a weekly high 628.75$ on some markets exceeding 635$.
"Again, the likely culprit of this was a short squeeze (short squeeze)," - said Rzepkowski, stressing that the price movement occurred at low volumes and does not coincide with any prominent catalyst news.
In the short term, the market may experience a further reduction in short positions, since, according to Rzepkowski, "the current market is pretty illiquid".
"Existing short positions are removed, because the price continues to grow. "Sorcery" close their short positions and open long, or just leave the market for some time.
Due to the low liquidity of the market, the situation gives the price of the power players with the most opportunities."
Longer-term factor causing the price increase should be considered significant decline in sales on the part of miners, which in the last two months "to release" less than 2,000 BTC per day, while the demand for money more stable.
Short-term impact of the news, including today's expected speech of the member of the Board of the fed Leila of Brainerd which may impact on expectations of the fed rate hike at the September meeting.