Bitcoin suddenly hustles over $4,000 – A bull trap or genuine rally?

Are we about to experience another crypto bull run? Maybe, maybe not.

Everybody will be excited to see a new bull rally in the crypto market, and bitcoin has to be at the center of it. However, the giant crypto for the past few months has struggled on its attempts to gain some footing above $4,000.

Finally the crypto giant rallies above $4,000

Today bitcoin has rallied to a little above the psychological barrier whereby it has gained almost 4% in the past 24 trading period. The rise in price had come when its daily trading volume tops $10 billion which is the most that have been seen in a period of 24 hours since April last year when the price was at over $8,000.

Previously, BTC had managed to reach $4,100 (Feb. 23 to be precise) but then rolled back again to below $4,000 resistance level. Currently, bitcoin has moved to $4,060 from $4,051, and as things stand, all seem to get going.

Similarly, the crypto assets in the top ten as well recorded some gains. For instance, some like Ethereum, Litecoin, and Bitcoin Cash had an increase in the range of 5%-12%.

Are the bulls back?

Apparently, the past 30 hours has brought back some optimism into the cryptocurrency market. The cryptocurrency has overall added $6 billion with several top coins also gaining. The fact that bitcoin finally has not only reached but sustained a position over the $4,000 mark spells some optimism that the bulls are back.

The masterminds behind Bitcoin rally

Yes, bitcoin is on the rise by a bit, but what might have prompted its recent surge?

According to analysts, the rise must have been as a result of some positive news on the background. For instance, there have been a plethora of positive forecasts about bitcoin, and interestingly coming from prominent investors. The positive vibes seem to have started reaping the benefits.

First, it was the famous broadcaster as well as crypto investor Max Keiser who gave support to bitcoin. He stated that in 2019, alternative cryptocurrency trading platforms would be popular similar to regular centralized ones. As a result, bitcoin will become popular among the investors eventually replacing USD as the global reserve currency.

Furthermore, another giant-name investor Marc Faber (Dr. Doom) crossed the road to Bitcoin this week. What makes it exciting is the fact that previously he has been a skeptic and that now buying his first bitcoin must have raised positive questions among many.

Moreover, Tether Ltd announcing that their assets have back the USDT stable coin too and that’s not fully backed by USD must have led to frustrations as well as angered investors to make a grand shift to Bitcoin instead.

There’s every reason to be optimistic about another bull run being on the cards, but then we should also not forget that the last time out bitcoin had a feeling of $4,000 even spiking to about $4,500, it fell again severely. Therefore, what remains to see is whether bitcoin will continue climbing higher in the coming weeks or the optimism will be short lived.

Image courtesy of Pixabay.

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.

Naveed Iqbal: A crypto nerd, internet security wizard. Believer of 'decentralization' in real. Love helping others and spreading information worth sharing.