The words “weekend” and “excitement” rarely go together in the cryptocurrency market. If you’ve been navigating the cryptosphere for more than a few weeks, you’ve probably noticed that the weekend market is usually very dull or it’s dominated by bears.
So while the digital asset market is open for business 24/7 (unlike, Forex, for instance, which closes on Friday at 17:00, NYC time and it remains closed until the Asian session starts on Monday mornings at Wellington, New Zealand) that’s not such a convenient fact because making a buck during the weekend takes a lot more expertise and discipline than during weekdays.
That’s why Bitcoin’s spectacular behavior over the last weekend is more significant than just a vast bull run (which would be meaningful if it had happened on a weekday anyway).
In this article, we will review and try to elucidate what happened with Bitcoin over the last weekend and try to figure an outlook out for the mother of all cryptocurrencies.
It was nothing short of amazing. The price went up steadily, forming one of those legendary (and highly anticipated) parabolic patterns. There were fluctuations. They turned out to be small and ended up being irrelevant in the big scheme of things.
Everything started on Friday night. It began slowly but steadily until things became serious on Saturday morning. During Friday, Bitcoin was approaching the USD 6.000,00 level, which is a psychological mark because it’s a round number, but it’s not so important otherwise. The USD 6.400,00 level is a different story.
Because it was Bitcoin’s support level for such a long time during last year, it became something of a fixture in Bitcoin trading. The traders feared as something of a boogeyman. By Saturday morning, it had turned into the new resistance level and, given the market’s behavior during last year around this price level, a lot of traders were wondering what would happen.
Chances are that nobody expected that the said 6.4k level would be overcome very quickly and that the price would continue to soar until it reached USD 6.950 less than an hour after going above it. It went back a little afterward, finding support at USD 6.680. For most of the day, it seemed that Bitcoin would be stuck trading sideways around the 7k level. But just before midnight, the market saw another surge that brought the price to USD 7.398,00.
On the next day (Sunday) trading volumes were high, thus assisting the price in keeping climbing to a height of USD 7.581,00. This became a hit at the ceiling, and the price bounced back down. It dropped in free fall all the way to USD 6.769,00. Support kicked in again, and the price recovered to the 7k level.
So the weekend was highly volatile. Probably the most erratic period in about a year, but it ended up producing very green numbers and favoring Bitcoin.
Some analysts think that this came about because of the US-China trade war. Others believe that the Bitinex/Tether fiasco brought a lot of money previously invested in USDT to Bitcoin, thus creating high trading volumes, higher demand, and raising the price. And some others think that it happened because of a cash injection by institutional investors, which is very unlikely because financial institutions do not work on weekends.
It’s impossible to know for sure, especially now because it’s all too fresh.
What comes next?
Bitcoin is trading at $8027 as we write this. It’s still on slightly green numbers for the last 24 hours (0.18%). So the price has been soaring from Monday on as well. So what comes next? Well, it doesn’t happen next, it’s already here, and it’s the new crypto summer, the next bullish run on Bitcoin. That being said, towering market peaks can be followed by market corrections. So this is not the time to let optimism negate precautions.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.