KEY POINTS

  • An analyst pointed to improvements in technical and fundamental factor as reasons for BTC's recent rally
  • The rest of the crypto market rallied following Bitcoin
  • The launch of CME options could have boosted BTC's price as well

Bitcoin (BTC) is at its highest point in two months when back in December, a usual buoyant month for investors, the flagship crypto was trapped under $8,000 as no Santa Clause rally took place. Now, at $8,600, the healthy climb to the upside since the start of the year is still unlike the price movements of BTC seen recently.

On Tuesday, the king of cryptos rallied for more than 8%, and altcoins followed suit mimicking gains that their most popular peer initiated. Ethereum (ETH) is up almost 10% in the last 24 hours, and Ripple (XRP) is almost at 8%, according to Coindesk. The uptick seen in BTC, which was sparked by the Iran-U.S. conflict, continued despite war threats watered down.

Forbes quoted Christopher Brookins, the founder and CIO at Valiendero Digital Assets, as saying that improvements in fundamentals and technicals caused the rise in BTC's price. Brookins noted that Bitcoin's hash rate and the Hurst exponent, a momentum indicator, in his analysis as two fundamental and technical factors defining the bottom for BTC.

Technicals

A chart by Bloomberg showed that Bitcoin had broken upward a parallel channel that delineated its slide from its June 2019 high. The level above $9,500 or somewhere close to the highs established in late October last year would be an area that price could break to continue the upward momentum, and that will also mark a cross above the 200-day moving average.

Bitcoin chart (Jan. 15, 2020) The technical analysis chart for BTC on January 15, 2020. Photo: TradingView

CME Options

Another factor that could have affected BTC's most recent price hike is the launch of the CME Bitcoin Option, Vijay Ayyar of Singapore-based crypto exchange Luno told Bloomberg. These derivatives that provide investors to purchase the right to buy or sell BTC was a success in its debut on Monday, Jan. 13. The contract that represents five Bitcoins amounted to 55 contracts traded on its first day and was valued at $2.34 million.

The volume of Bakkt futures, the joint venture of ICE, Microsoft, and Starbucks that launched in September, was also up with 2,907 contracts traded worth $19.94 million, as per Cointelegraph.

Will Bitcoin go past $9,000 in January? That's what most in the crypto world will tune in to, but that comes after they find answers to why Bitcoin's hard fork, BSV, soared 100% following BTC.

bitcoin_large Bitcoin Photo: Getty