Shortly after the drop, the price of bitcoin abruptly resumes its previous pattern, returning to levels from mid-May.
On October 13, Bitcoin was back at $57,000 after a classic move destroyed $200 million worth of hopeful traders.
Trader Draws Comparisons to Price Movement in August
BTC/USD reached highs of $57,250 on Bitstamp, up about $3,000 in less than three hours, according to data from Cointelegraph Markets Pro and TradingView.
Thus, Bitcoin gained 5.5% on the day, setting up a rematch of five-month highs, resembling other rises over the previous week.
As a result, those looking to short more than $54,260 were let down amid a wave of bullish confidence.
Rekt Capital, a fellow trader, and analyst confirmed that BTC/USD made a higher low during the retracement, setting it up for additional growth.
Over 70% Increase in Futures’ Open Interest
The rise in open interest for CME Bitcoin futures over the past month, as seen by data from derivatives, gives traders even more reason to be optimistic about the direction of future price movements.
Despite remaining below February’s all-time highs, analysts said the trend is positive given the probability that traders are anticipating a potential United States approval for a futures-based exchange-traded fund (ETF).