Bitcoin price spikes 5% to $13.5K shortly after ECB stimulus announcement

The price of Bitcoin increased from $12,920 to $13,600 in four hours, recording a 5% rally.

The uptrend coincides with positive developments from the European Central Bank and optimistic job data from the U.S.Macro factors favor Bitcoin rally.

The perception of Bitcoin as a safe-haven asset is noticeably strengthening due to the rise in institutional demand.

When risk-on assets, such as stocks, are declining, they could place indirect pressure on BTC. As such, when stocks rally and risk-on assets thrive, the short-term outlook for the price of Bitcoin improves.

First, the ECB said it might seek a new stimulus package in December.

A second stimulus package in Europe achieves two things.

Since U.S. President Donald Trump has made his position clear that a stimulus package will come after the election, this sets the U.S. up for a December stimulus deal.

When the price of Bitcoin moved below $13,000, technical analysts said BTC is at risk of dropping to $12,700 and lower.

BTC defending the area indicates buyer demand is overwhelming selling pressure, as seen in the futures market.

The funding rate of the Bitcoin futures market has remained negative throughout the past several days.