According to CoinDesk: Bitcoin attained a level above $28,000 early on Monday, marking its highest price in over a month. Analysts cite optimism for Exchange Traded Funds (ETFs) and seasonal trends as key drivers behind this increase.
Last week, traders on Japanese exchange Bitbank were already focusing on the $28,000 threshold for Bitcoin. The $28,500 level has previously served as a significant support marker in the bull market and is expected to transform into a resistance level in the upcoming weeks.
Meanwhile, movement amongst altcoins saw Ether (ETH) exceeded $1,700 in the past 24 hours, while Binance Coin (BNB) and Cardano (ADA) grew 3.3%. Polygon (MATIC) saw a rise of 5.5%, with Solana's SOL tokens leading the pack by surging 14.5%, largely due to a refreshed trader optimism in its network.
The surge in Bitcoin and Ether has likely been fueled by short liquidations on crypto futures. Data indicates that approximately $94 million was swept up in the risk against rising prices over this past Sunday, leading to a 'short squeeze'.
Liquidations of some 30,000 bearish bets were recorded, primarily on crypto exchange OKX. This process involves the forced closure of a trader's leveraged position by an exchange, triggered by a partial or total loss of the trader's initial margin. It occurs when a trader fails to fulfill margin requirements for a leveraged position or lacks sufficient funds to keep the trade open.
Market analysts, such as XS.com's Samer Hasn, highlight traditional seasonality as a factor contributing to Sunday's gains. Known as "Uptober" among the crypto community, Bitcoin has only recorded monthly losses twice since 2013.
Crypto markets were majorly uplifted last week due to an anticipated rise in short-term demand, following the proposal of an Ether futures Exchange-Traded Fund (ETF) by financial giant VanEck.
