Bitcoin boomed the entire crypto market overnight, with a sustained defense of $ 8,800 sparking immense momentum, increasing its market cap by almost $ 10 billion.Although today’s rally is an obviously bullish sign, analysts are still cautious as to where the market could go in the coming days and weeks.Several respected analysts point to factors that make this upswing short-lived and possibly followed by a massive decline that leads BTC towards the lower $ 7,000 region.
Bitcoin is growing the crypto market by $ 10 billion
The crypto market has been closely monitoring Bitcoin’s price action in recent weeks.This correlation has proven to be positive for the market as BTC rebound at most $ 8,800 lows caused most altcoins to rise.The market has increased its capitalization by $ 10 billion in the past 12 hours and has changed the mood of investors dramatically.Important to note: analysts remain skeptical about the long-term importance of the recent upswing at $ 8,800.As a trader explains, this move has been fueled by over $ 20 million in short positions released. He believes this is a signal that the rise will be temporary. According to him, the major market participants would fill up with short positions:
“This whole upward movement will be fueled by short and liquidation positions, while the major market players will distribute and replenish their short positions”