Bitcoin rose during the early U.S. trading hours, ignoring the continued rally in the greenback as spot buyers shook out bearish derivative bets.
The leading cryptocurrency by market value rose 2% to $26,750 even as the U.S. dollar index, which gauges the greenback's value against the major currencies, reached a fresh 10-month high of 106.48. A rise in the dollar index usually has a bearish impact on risk assets, including cryptocurrencies.
"Bitcoin's move higher was set in motion by the spot market buyers," pseudonymous crypto trader and analyst Skew (@52kskew on X) told CoinDesk.
"That kicked off market buying and a short squeeze or bears covering their bearish futures bets, which pushed prices further higher," Skew added.
Data tracked by Coinalyze show the early rise from $26,000 was accompanied by an uptick in the spot market cumulative volume delta (CVD), a sign of net capital inflows or net buying in the spot market. Later, the CVD in the stablecoin-margined and coin-margined futures contracts led the market higher.
ETH, XRP and other major cryptocurrencies tracked bitcoin higher, with XRP gaining 1% despite the impending death cross.
The ominous-sounding technical analysis pattern occurs when the 50-day simple moving average of prices dips below the 200-day SMA, signaling a long-term bearish shift in momentum.
XRP's impending death cross is consistent with similar patterns in recent weeks in bitcoin and ether. These SMA-based patterns are lagging indicators and often trap sellers on the wrong side of the market. For instance, bitcoin's downward momentum ran out of steam below $25,000 after seeing a death cross on Sept. 11.