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Home / Business / 3 reasons Bitcon's price suddenly increased back to $ 5K

3 reasons Bitcon's price suddenly increased back to $ 5K



The crypto market jumped back to life with bitcoin's increase to 4.5 months high yesterday. But why?

The leading market value cryptocurrency jumped nearly $ 1,000 to $ 5,080 in a sixteen minus early on Tuesday, confirming a transition from a bear market to a beef market.

While the bullish breakout is a welcome development After a year-long bear market, many retailers are still uncertain of what suddenly drove prices higher.

However, a major move was delayed, as bitcoins average daily trading has fallen to two years' decline in March. A long period of low volatility often ends with a violent movement on both sides.

The low volatility period ended with a strong bullish breakout, possibly due to the following three reasons:

1
. Mining reward halving

Bitcoin is set to undergo a mining reward halving in August 2020 and historical data indicates that the process tends to bid during the crypto course at least a year in advance.

Markets first noticed this opportunity in December 2018 after sales ran out of nearly $ 3,100. The particular pricing pattern is reminiscent of how the former bear market had ended at a low level near $ 150 at the beginning of January 2015 – 17 months before a rewards halving in August 2016.

The story that BTC is set to repeat the story Breaking into a bull market at least a year ahead of the next mining halve (due to August 2020) has only strengthened over the past three months, possibly leading to bullfights yesterday.

2. Technical signs were the prediction of the bullish ratio

Several longer duration indicators, such as the weekly cash flow index and the moving average convergence divergence (MACD), had signaled a bearish-to-bullish trend change in February.

Further, delaying indicators such as the bearish transitions to the long-term moving averages (MA) were flashing seller fatigue.

These technical developments probably reinforced expectations of stronger rally ahead of incoming halving.

3. Market Activity

Reuters reported yesterday that a single algorithmically managed order worth $ 100 million spread across several major exchanges – Coinbase and Kraken and Bitstamp – triggered the sudden rally to several months of heights.

At the same time, Bitfinex shows that the winding up of bearish bets created upward pressure on prices. BTC / USD short positions doubled from 20,654 BTC to 17,103 BTC between 4:00 am and 6:00 pm UTC yesterday; Later it drops to 16,988 BTC – the lowest level since March 2018.

Looking forward, BTC could experience a slight withdrawal to levels below $ 4,700 in the short term. However, the overall outlook will remain bullish, as long as the BTC remains above $ 4,236.

Time List

BTC revised yesterday's $ 4,080 elevation earlier today. However, the bullish direction was accompanied by a lower relative strength index (RSI).

The bearish divergence indicates the extent of a withdrawal to the rising (bullish) 50-hour MA, currently at $ 4,572.

Weekly map

Both the triangular breakout and the bullish higher high above $ 4,236 indicate that the tide has benefited the bulls. The validation of this argument is the rising average 5- and 10-week moving averages.

As said, with the short duration maps that report over-buying situations, a pause over the crucial 21-month exponential moving average (EMA), currently at $ 5,200,

Release: The author has no activation values ​​at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View


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