After squeezing the $25,000 threshold over the course of Thursday without being able to clear that mark, Bitcoin posted a more decisive rally overnight, peaking at $25,938, and still close to that peak on Friday morning.
There is no fundamental information to explain this bullish movement in Bitcoin, but it should be noted that it is part of a risk appetite retracement wave, as we have seen in the Asian markets.
The dollar's decline was also a catalyst for Bitcoin's rise. It is also important to note that the rally in the cryptocurrency came amid the low liquidity conditions we saw overnight. Some analysts blamed the potential purchase by Binance, which recently announced that it would transfer $1 billion of BUSD stablecoin reserves to Bitcoin, Binance Ethereum, and other cryptocurrencies.
"There is huge buying pressure in the markets," KAICO's Clara Medaly said on CoinDesk TV.
She added, "Since the markets do not have a lot of liquidity, any significant buying pressure is likely to have a significant impact on prices in general."
Technical limits to watch for Bitcoin