Decentral Block Post

Bitcoin (BTC) volatility is finally giving BTC bulls what they want — but why now?

After drifting lower for months and spending recent weeks in a tiny trading range, BTC/USD has delivered 24-hour gains in excess of 7%.

Hitting its highest levels since mid-September, the largest cryptocurrency is rewarding those who refused to sell and punishing shorters to the tune of around $1 billion.

The change of trend has come quickly and caught many by surprise, as evidenced by that liquidation tally.

Behind the scenes, however, little has changed — macroeconomic conditions have not undergone major upheaval compared to a week ago, and internal problems for Bitcoin, such as miner strain, remain the same.

Bitcoin (BTC) volatility is finally giving BTC bulls what they want — but why now?

After drifting lower for months and spending recent weeks in a tiny trading range, BTC/USD has delivered 24-hour gains in excess of 7%.

Hitting its highest levels since mid-September, the largest cryptocurrency is rewarding those who refused to sell and punishing shorters to the tune of around $1 billion.

The trend change came quickly and caught many by surprise, as evidenced by that liquidation tally.

Behind the scenes, however, little has changed — macroeconomic conditions have not undergone major upheaval compared with a week ago, and internal problems for Bitcoin, such as miner strain, remain the same.

Ethereum’s native token, Ether (ETH), recorded better gains than Bitcoin (BTC) over the past 24 hours despite the latter finally rising above the key $20,000 level.

Ether beats Bitcoin in risk-on rally

On the daily chart, Ether jumped approximately 14% to reach its weekly high of $1,554 (data from Binance) on Oct. 26. Bitcoin underwent a similar rally, but its week-to-date profits are just 6% by comparison. 

The ETH/BTC pair gained around 8%, climbing as high as 0.075 BTC on Oct. 26.

The boom across the top crypto assets has been synchronous with the United States stock market’s winning streak since Oct. 24. It also came on the backdrop of a weaker U.S. dollar index, which has been typically trading inversely to the crypto market since March 2020.

Bear fractal alarm

ETH/BTC’s latest price rally has taken it to a range that preceded a 35% correction in the April–May 2022 session (marked as “R1” in the chart below) and was instrumental in limiting its upside prospects in August–September 2022 (marked as “R3” in the chart below).