In fact, traders have been anticipating for a change that would spike the price of Bitcoin after a year-long bear run. Most often the price moves are the result of a few whales, but there seemed to be no obvious event contributed to the price rise recently. Out of the rumors we heard from the crypto community, we’ve listed 3 possible reasons below to assist you to solve the mystery. (or can it be solved?)
1. The Big Whale Pumped
Reuters reported that there was a trader who placed a single order of 20,000 BTC that has been algorithmically-managed across several major exchanges on Tuesday, taking out all their order books simultaneously. Some believe that this was due to an April Fools Day joke that suggest a new Bitcoin ETF had been approved by the SEC. The CPU-based algorithmic trading bots picked up on the “news” and started buying asset near important resistance levels, breaking it and triggering a cascade of stop losses.
2. It’s Halvening
Historically speaking, it’s a usual pattern for Bitcoin price to break into a bull market at least one year of the upcoming halving of block rewards. As Bitcoin is set to undergo another halving in May 2020, with just around 12 months before the process, traders might have responded to this and started to put their bids on Bitcoin, which contributed to this sudden rocket in price.
3. From Bear to Bull
When looking at the overall market sentiment for the past few weeks, one might have noticed that Bitcoin has been trading at the $4,000 range for a long period. While almost all Bitcoin traders are optimistic that the price would go up, a break above the $4,200 mark (over 10% surge) has restored market confidence and encouraged more investors to come into the market, reversing to the bullish side.
At this point, no one is sure what was the catalyst of this Bitcoin surge, and traders should do their own research before following the trend and changing all your fiat into crypto. With the generally positive sentiment going on in the market, hodlers might be seeing more good news very soon?
This post also appeared on Medium. Read more.
Risk Warning: Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.