- Bitcoin rallies above $9,600 barely a day after Goldman Sachs proclaimed dislike for Bitcoin and cryptocurrencies.
- Bitcoin buyers seek higher support after testing levels above $9,600 for the first time in seven days.
Bitcoin price rallied from levels under $9,200 to touch $9,600 barely a day after Goldman Sachs branded it a non-asset class. Investors around the world appear to be joining the market as though to spite one of the largest investment banks in the world. Goldman Sachs said that Bitcoin did not have what it takes to be considered a worthy asset due to volatility, illicit activities, and lack of cash flow.
Consequently, Bitcoin price embarked on a journey of breaking weekly barriers at $9,200, $9,300, and even $9,600. An intraday high has been reached at $9,609 (marking the end of the brief rally). BTC/USD has already suffered a loss of 0.7% on the day and is doddering at $9,512. BTC/USD has not traded above $9,500 in the past seven days. It is clear that the largest cryptocurrency is just a few percentage points from the highs traded in May above $10,000.
BTC/USD 1-hour chart
As Bitcoin bulls work hard to establish high support, preferably above $9,500, of significance is the increase in short positions liquidation on BitMEX, one of the largest derivatives trading platform. According to data presented by Skew.com, a platform that tracks crypto market data, about $40 million in short positions has been liquidated over the last 36 hours on BitMEX. Other market indicators show that BTC is starting to trade above the spot price. In other words, traders in the derivatives market have confidence in the rally eyeing $10,000.
Meanwhile, Bitcoin is likely grinding into key resistance. If a rejection takes place in the region around $9,600, the price could spiral back under $9,000. However, this is the time buyers have to prove their confidence in the recovery and find support above $9,500 before making another attempt on breaking resistance at $9,600 and trend to $10,000.