Bitcoin has climbed from close to $9,000 a week ago to nearly $11,000 today. (Photo by Chesnot\/Getty ... [+] Images)<\/p>\n
Bitcoin prices have experienced some notable gains lately, breaking through $10,000 yesterday and then continuing to rally. <\/p>\n
As a result of this bullish movement, bitcoin reached $10,947.76 this afternoon, CoinDesk data shows. <\/p>\n
At this point, the worlds most prominent digital currency was trading at its loftiest value since August, additional CoinDesk figures reveal. <\/p>\n
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]<\/p>\n
When asked to explain the cryptocurrencys latest upside, Tim Enneking,managing director ofDigital Capital Management, pointed to several factors. <\/p>\n
The U.S. equities\/BTC correlation has been absurdly high for several months and BTC literally could not break through 10k and continue to move up without that correlation falling well below +1. That has now happened, along with a monumental psychological barrier (10k) falling. <\/p>\n
With the move in the alts causing BTC correlation to plunge to almost 60%, there is also a standard rotation from alts into BTC which is just getting started, he noted. <\/p>\n
Add to that the dollar at record lows and gold at record highs, and BTC has a *lot* of healthy tailwinds right now.<\/p>\n
While this may not be a perfect storm it isnt far off, said Enneking. <\/p>\n
Once these variables combined to fuel the latest rally, a short squeeze on Sunday sent Bitcoin through the key $10,000 level, stated Denis Vinokourov, head of research for London-based digital asset firmBequant. <\/p>\n
While Enneking and Vinokourov highlighted the aforementioned variables, analyst Marouane Garon spoke to the growing optimism he sees in the space. <\/p>\n
Open interest in Bitcoin has been declining for quite some time, but the amount of traders going long has been increasing significantly, said Garon, managing director of crypto-to-crypto derivatives platformAmulet. <\/p>\n
This usually is a signal for market makers to push the price down and trap those going long, he stated. In this case, the opposite has happened.<\/p>\n
Mark Warner, head of trading for London-based financial services firm BCB Group, also weighed in on the latest market developments. <\/p>\n
The price increase ends a long consolidation period, characterized by decreasing volatility, he stated.<\/p>\n
Historically speaking, these low volatility periods have often ended with violent price action which often trap traders on the wrong side of the move, their liquidations adding to the momentum. <\/p>\n
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.<\/p>\n
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