There was only one dominant talking point over the weekend and that was Bitcoin. The crypto king blasted the $10,000 level and made a new 2019 high which stands at $11,251. Although, it has retraced from that level and is currently trading at $10,757. Nonetheless, this is a strong comeback and everyone has been waiting for this for a long time. From a price perspective, Bitcoin has recovered more than 50% of its losses from its all-time high of $20,000. The strong resurgence in the Bitcoin price is mainly due to the renewed mainstream interest in cryptocurrencies and the technology that underlines it. Projects like Facebook’s Libra have provided a much-needed tailwind for this space.
In my previous research, I mentioned that a move to the upside could be highly volatile due to speculators holding a large number of short bets as per the CFTC data released last Friday. The large number of short bets gave birth to a short squeeze. The below chart shows the large number of short bets for Bitcoin: Non-commercial net contract bets confirmed an increase in short interest while the price was up nearly 214% from its 2018 low.
Short bets are an important part of the bull equationSource: CFTC, ThinkMarkets
Nevertheless, the most important thing was the 24-hour volume for bitcoin, it was at its highest level since December 2017 when the price was trading at $20,000. This shows that the game is on because of the mainstream enterprises jumping in this space, due to investors not losing their interest when the first bubble busted. They simply moved on the sideline waiting for the next bull run to start.
The Google Trend search for “Buy Bitcoin” shows that the largest number of searches are coming from mostly African countries with Nigeria taking the top place followed by South Africa and Ghana. However, the ...