The mood across the cryptocurrency ecosystem has shifted to cautious optimism on Feb. 7, as Bitcoin (BTC) bulls managed to bid its price back above support at $44,000 with the help of several positive developments, including the announcement that “Big Four” auditor KPMG has added BTC and Ether (ETH) to its corporate treasury.
Data from Cointelegraph Markets Pro and TradingView shows that, after hovering around $42,500 during the early morning on Feb. 7, a midday wave of buying lifted the BTC price to a high of $44,500 as short traders scrambled to close their positions.
The sudden move up in BTC has led to a plethora of up-only bullish proclamations by crypto holders, while more seasoned traders, including pseudonymous Twitter user Pentoshi, are using this opportunity to secure some profits and reposition themselves for what comes next.
Pentoshi said: “Taking the last highs now. Looking for one last spike up but $44,000–$46,300. In my opinion, good spot to close longs out and re-evaluate.”
Insight into how active traders are perceiving this latest BTC price move was provided by Bitcoin analyst and Twitter user Allen Au, who posted the following graphic outlining how the futures markets were impacted by Feb. 7’s price action.
As shown in the graphic, $71 million in Bitcoin shorts were liquidated in the move to go along with a decrease in open interest, which Au suggested is a “short squeeze” that “could continue to fuel a price rise.” He further explained: “Perpetual futures funding rates are negative despite BTC breaking above $44K. Traders are still bearish about BTC.”
Au highlighted the next major resistance levels for Bitcon at $44,500, $46,500 and $47,500.