The Bitcoin price surged on Monday as demand for the coin jumped. It rose to a multi-month high of $46,000, pushing its total market capitalization to more than $863 billion. The BTC coin has added more than $200 billion in the past three weeks.
Why Bitcoin soared
There are three primary reasons why the Bitcoin price has jumped in the past three weeks. The first of it is technical, which I will cover in detail below.
The second reason is the performance of the bond market. While the US has published strong numbers, the market believes that the Federal Reserve will hold policy steady for longer. A good way to look at this is to consider the performance of the bond market.
The 10-year yield has dropped from a year-to-date high of 1.77% to the current level of 1.319%. At the same time, inflation expectation is falling, which has pushed investors to relatively risky assets like Bitcoin and Ethereum.
Third, on-chain data shows that large investors are moving back to Bitcoin and other cryptocurrencies. While many large companies have not disclosed their crypto holdings, we know that companies like MassMutual, SpaceX, and Tesla already own large stakes in Bitcoin. Therefore, there is a possibility that more companies will invest in the coin now that it has struggled moving below $30,000.
The next reason is that other assets like gold and Ethereum have bounced back from their flash crash earlier today. Indeed, Bitcoin’s crash earlier today was less than that of other assets like gold and silver.
Bitcoin price technical forecast

As mentioned, the most important reason why the BTC price has rebounded is technical. As we can see below, the coin struggled to move below the important level at $29,500 in May, June, and July. This, in turn, became the important level of support.
At the same time, the price struggled to move above the resistance at $40,000. In the past two weeks, the coin made several attempts to move above this level. The first successful attempt came in on July 30th when the coin jumped to $42,500. It then did the classic break and retest arrangement. Finally, it broke out above this level during the weekend.
Meanwhile, the Bitcoin price has risen above the 25-day, 50-day, and 100-day moving averages. This is an extremely bullish signal. Therefore, with volume rising, we can’t rule out a situation where the coin rises above the all-time high of $65,000. Most notably, we see that volume is rising, meaning that this price is not a dead cat bounce.
Amidst all this, the biggest winner is Michael Sayler, MicroStrategy CEO, who is one of the leading believers of Bitcoin. In the past few months, he has remained steadfast in his belief of the coin. He even raised funds to buy the dips. He will likely have the last laugh after all.