Bitcoin: a bear reversal or a a bull trap

At press time, bitcoin has risen by approximately 25 percent from its December low of $3,100. This morning, the father of cryptocurrency rose all the way to $3,900, though at the time of writing, that price has fallen back down to just over $3,700.

Still, it’s a serious step up from where bitcoin has been hovering. Late last week, the currency struck the $3,100 mark for the first time in over 15 months, marking its lowest position since the Thanksgiving bear rally. While bitcoin has been dropping all year, the past four weeks have proven to be among the most devastating. Ever since bitcoin cash forked the week before Thanksgiving, the largest cryptocurrency by market cap has been in serious decline, falling from the low $6,000 range to where it is now.

But it appears the asset is bouncing back, leaving many to wonder if the currency is truly recovering or if this a short-term fluke of sorts. Naturally, enthusiasts are witnessing speculation from every corner. Joe DiPasquale – CEO of the cryptocurrency hedge fund BitBull Capital – points to strong support near the $3,000 level and says that a short squeeze has “manifested.”
He comments:
“Yes, the $3,000 support level and a short squeeze has helped bitcoin’s price recover, but there is also a lot of media coverage around Mark Dow closing his short position, which he opened when bitcoin was around $19,000 [last December], adding to the positive sentiment.”

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