Bitcoin Surges Past $26,000: Here’s Why the Price Is Skyrocketing Today

The world’s largest cryptocurrency Bitcoin (BTC) has witnessed some volatile price movements over the past two days and surged to $26,5000 levels on Tuesday. The recent surge in the BTC price came amid some positive developments in the spot Bitcoin ETF.

The Bitcoin price made a healthy bounce over the excitement of Franklin Templeton filing for a spot Bitcoin ETF on Tuesday, September 12. Following Judge Neomi Rao’s decision in favor of the Grayscale Bitcoin Trust in its case against the United States Securities and Exchange Commission (SEC) on August 29, several major institutions have applied for exchange-traded funds (ETFs).

Companies like BlackRock and Fidelity Investments are showing increasing interest in Bitcoin. Although both institutions had their BTC spot ETF approvals postponed on September 2, the $1.5 trillion asset manager Franklin Templeton filed for a spot Bitcoin ETF with the SEC on September 12.

Despite numerous applications in the past, the SEC has still not approved the spot Bitcoin ETF for the US markets. Apart from these indicators, Bitcoin’s on-chain indicators have also been showing strength lately.

Bitcoin Exchange Supply Continues to Drop

As Bitcoin experiences price gains, the amount of BTC available on exchanges remains below the peak reached in 2023, which occurred on May 1. Since that time, over 200,000 Bitcoin have been withdrawn from exchanges.

Courtesy: CoinGlass

The crypto market interprets this as a bullish sign, as traders usually move their BTC off exchanges when they intend to hold it in their own secure storage for the long term.

Interestingly, data from on-chain analysis reveals that, despite the prolonged bear market, many Bitcoin investors are positioning themselves for a potential BTC price rally. The number of wallets holding 0.1 BTC has reached an all-time high of 12 million as of September 12.

On the other hand, the Bitcoin network activity also shot up significantly on Tuesday. Bitcoin maintains its position as the dominant cryptocurrency, having surged to levels as high as $26,500. The Bitcoin network has witnessed the interaction of 1.1 million daily addresses since Thursday, marking a five-month high. However, today, traders are taking profits following the modest increase observed since yesterday.

Courtesy: Santiment

Bitcoin Technical Chart

After yesterday’s price surge, the BTC price has once again dropped under $26,000 levels. As of press time, Bitcoin is trading 0.95% up at a price of $25,981 and a market cap of $506 billion. Popular crypto analyst Ali Martinez noted:

As we navigate a week with key financial events, it’s crucial to highlight that the TD Sequential indicator has signaled a ‘buy’ on the $BTC weekly chart. For this to be validated, #BTC needs to close above the week above $25,600. If confirmed, targets could be $28,350 or even $31,800.

Another positive indicator for Bitcoin is that in the last 24 hours, over $38.1 million in BTC shorts have been liquidated, of which $26.4 million short liquidation happened just in the last 12 hours. Even though short-sellers have been consistently losing, a significant 53% of the futures market is still betting against Bitcoin. This substantial proportion favoring short positions could create the conditions for a short squeeze, potentially driving Bitcoin’s price even higher.