Bitcoin trades toward the September high as $66,508

The price of bitcoin is much higher in trading today and in the process has been able to extend above target levels including the swing high from the end of August near $65,000, and another swing area near $65,468. The area between those levels is now close support. Stay above $64,988 keeps the buyers in firm control (see red numbered circles and yellow area on the chart above).

The next target on the topside comes in at the September high price of $66,508. Move above that level and the digital currency is trading at the highest level since July 31. The high price in the month of July reached up to $70,016.

The high price for the year (not shown) reached up to $73,794 back on March 14.

Other technical bullish signals

• Over the weekend, the low price was able to stay above its 200 day moving average currently at $62,187
• The price also moved back above its 100 day moving average at $62,687

Some other reasons for the run higher:

• Liquidations of Short Positions: Over $93 million in Bitcoin positions were liquidated, with $83 million of those being short positions, indicating a surge in bullish bets and contributing to the price recovery.

• U.S. Inflation Data: Positive inflation data from the U.S., including a 0% Producer Price Index (PPI) reading, bolstered market sentiment by easing concerns over inflationary pressures, making riskier assets like Bitcoin more attractive.

• Optimism Surrounding U.S. Election: Renewed optimism related to the U.S. presidential election has added to the positive sentiment surrounding Bitcoin’s price action. Former President Tromp is a advocate of bitcoin and his polling numbers got better over the weekend

This article was written by Greg Michalowski at www.forexlive.com.