Last Tuesday Bitcoin went roughly from USD 4.000 to 5.000 in no more than sixty minutes. It was a veritable surge, accompanied by high trading volumes. Shockwaves spread throughout the whole cryptoverse. So after Tuesday, almost all of the world’s cryptocurrencies have been trading consistently in green numbers.
After those great 60 minutes on Tuesday, Bitcoin has been trading sideways for the most part. No more dramatic 20% surges but it’s still managed to keep going up, and it trades at USD 5,197 as we write this which is not bad.
It’s had slight red numbers over the last 24 hours, but there are no signs that it will plummet any time again soon. Technical indicators have the “buy” signals on even in investing sites that are not especially interested in cryptocurrencies but include it alongside their usual forex, commodities and securities markets. So things are looking stable for now.
But some people in the cryptoverse still think that Bitcoin hasn’t dried as much as it could (or as it should) before the next bullish run arrives. They are promoting the idea that BTC will sink as a led balloon again sometime in the next few weeks.
Could those prophets of doom be right? Are they just wishful thinkers? How could they be wishful thinkers if they think the crypto-feculence will hit the fan again? Well, because if BTC keeps going up, it could mean they lost the chance to buy tokens at their lowest prices over the last two years so they won’t benefit as much from token ownership if the bulls come to visit. So a new plunge would benefit by giving them a second chance to buy.
But what’s the real logic behind it?
The idea in the last paragraph was posited by DonAlt, a crypto trader and investor via his Tweeter account. His post reads:
It turned out that a lot of people agrees with him. Crypto traders, investors, and aficionados think that the surge to 5k is authentic. By today, it’s held for a full week, so it’s a sign that BTC is really recovering. Some others think that the opinion is based on historical data. Specifically on the 2017 Q3-4 rally when the prices overcame the 200 moving average only to drop down, but then to break out again and kept growing until December 18th when the crypto winter arrived.
As things stand, many analysts are talking about bulls. They’re advising traders to buy Bitcoin while they still can get it under 6k because it’s entirely possible (even highly probable) that the BTC price will test the six thousand dollars resistance level again sometime in the next few days because Bitcoin’s fundamentals remain strong and because the technical analysis ducks could line up beautifully.
Why now?
Good question! Nobody really knows. We do know that on Tuesday, during that fantastic hour, a huge order (or series of orders) were placed for 20.000 bitcoins (USD 100.3 million) across three major exchanges. It’s been said that this happened because a bunch of algorithmic-based trading platforms all saw the same signals and decided to buy at the same time.
But it’s also been said that a mysterious individual user was singlehandedly responsible for the surge. We don’t know, and chances are we will never find out. But the fact remains that BTC could be poised as you read this to surge again if most analysts in the cryptosphere are right.
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.