I see that the price of $BTC went from $6300 to $6600 very fast. I'm wondering why that happened and if that's a bullish sign.
Since we did not go under $5800, it feels like the bearish market is starting to run out. If we continue to hold at these levels, is the bullish market coming sooner and faster than expected?
Also, I wanted to ask how Bitcoin Future Contracts work and if there is a possible relationship with the price jump. From what I understand, people agree on Bitcoin future contracts by agreeing on a price and time to sell BTC for? Is that correct? Or could someone give a short explanation on how they work and how they can affect the price?
A futures contract is when the buyer and the seller agree to trade an asset at a fixed price in the future(after 6 months for example).You and me can sign a contract and agree to trade BTC at 6000 USD after 3 months.But,after the months,the BTC market price might be 10,000 USD,so the futures contract buyer will buy the BTC at 6000 USD and sell it at 10,000 spot price.If the BTC market price goes under 6000 USD,the futures contract seller gets profit.
And no,the current 300 USD price increase is NOT a bullish trend.