Sunday , November 24 2024
Home / Bitcoin (BTC) / Why Did Bitcoin Jump So Swiftly? Analysts Weigh In

Why Did Bitcoin Jump So Swiftly? Analysts Weigh In

Summary:
Bitcoin rose more than 15 percent in one day. The behavior, while very much welcome, is also quite odd, and many analysts are wondering what could have caused the world’s number one digital currency by market cap to experience such a massive surge so quickly.Bitcoin Is Back in Bullish HandsWhile the asset is presently trading for as a much as ,800 – a price that is certainly solid in most traders’ eyes considering just 1.5 months ago, the currency was trading in the high ,000 range – bitcoin did spike beyond the ,000 range about 48 hours ago. Sadly, the move didn’t last as people began selling their bitcoin stashes as a means of putting cash into their pockets.Still, considering from one day to the next bitcoin went from the high ,000 range to more than ,000, further study is

Topics:
Nick Marinoff considers the following as important: , , , ,

This could be interesting, too:

Temitope Olatunji writes X Empire Unveils ‘Chill Phase’ Update: Community to Benefit from Expanded Tokenomics

Bhushan Akolkar writes Cardano Investors Continue to Be Hopeful despite 11% ADA Price Drop

Bena Ilyas writes Stablecoin Transactions Constitute 43% of Sub-Saharan Africa’s Volume

Chimamanda U. Martha writes Crypto Exchange ADEX Teams Up with Unizen to Enhance Trading Experience for Users 

Bitcoin rose more than 15 percent in one day. The behavior, while very much welcome, is also quite odd, and many analysts are wondering what could have caused the world’s number one digital currency by market cap to experience such a massive surge so quickly.

Bitcoin Is Back in Bullish Hands

While the asset is presently trading for as a much as $8,800 – a price that is certainly solid in most traders’ eyes considering just 1.5 months ago, the currency was trading in the high $3,000 range – bitcoin did spike beyond the $9,000 range about 48 hours ago. Sadly, the move didn’t last as people began selling their bitcoin stashes as a means of putting cash into their pockets.

Still, considering from one day to the next bitcoin went from the high $7,000 range to more than $9,000, further study is necessary in analysts’ eyes. One – Denis Vinokourov, head of research for digital asset firm Bequant – is quick to “blame” the halving event that’s slated to occur later in the month. He’s confident most people began buying bitcoin quickly in anticipation of the event, which in the past has often resulted in bullish momentum for crypto.

In a recent interview, he states:

With less than two weeks before the eagerly awaited block reward halving, the market was poised for a breakout. The direction was not always clear and, with plenty of flow in the derivatives market that would imply market participants were looking for downside protection, as opposed to upside exposure, there was always a risk of a retracement… At this stage, it appears that the bulls have prevailed, with key technical levels broken in the process.

Joe DiPasquale – the CEO of hedge fund manager Bit Bull Capital – also attempted to offer his own thoughts on why bitcoin is behaving as it is. He comments:

Price was testing the 150-day moving average for the past week and finally broke through it today, breaching the resistance at $8,200. Moving forward, the next resistance lies between $8,700 and $9,000. Bitcoin is likely to consolidate and retest $8,000 as a support before trying to tackle those.

So far, his words appear to hold some truth considering bitcoin has fallen by about $600 in the past 48 hours. Still, Michael Collett – co-founder and chief marketing officer at Stack – believes that bitcoin has hit a critical point in its present state, and will no doubt recover all it has lost within the coming months.

What the Bulls Need to Do

He explains:

Should the bears refrain from putting up much resistance to current movements and dedicate themselves long-term to their holdings, we can expect to see further price action upside as anticipation of the halving triggers bulls who see this as an opportunity to buy BTC at bargain basement rates before a price pop post halving.

Tags: , ,

Leave a Reply

Your email address will not be published. Required fields are marked *