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BTC/USD crossed $ 5,000 for the first time since November 2018

The second quarter began, and the crypto currency bulls suddenly felt a rush of energy and “worked”. The crypto market seems to have woken up a prolonged sleep and triggered himself as all 20 top digital assets, including Bitcoin (BTC), jumped sharply upside in the last 24 hours.

The total capitalization of all digital assets in circulation jumped to $ 173 billion from just over $ 147 billion at that time on Tuesday. The average daily trade volume catapulted from $ 33B to $ 83B.

Bitcoin (BTC) rose 27% yesterday. This morning the basic digital coin jumped to an intraday high near $ 5,030, but then stepped slightly back. Ethereum (ETH) was above $ 175.00 with over 18% profit on a daily basis. Ripple’s XRP rose to $ 0.3703 before withdrawing to $ 0.3520 at the time of my writing. The third largest digital asset rose by 16% on a daily basis. The other Altcoins showed similar growth rates between 5% and 13%.

What’s behind the mysterious rally?

At the fundamental front, the only positive news was that Paypal, the payment giant, had invested in a start-up in the blockchain industry. For the payment service giant, this was the first investment in blockchain space.

As regards regulators, everything is still negative. It became known that the SEC postponed for 90 days consideration of the applications for the launch of Bitcoin-ETF by VanEck and Bitwise. But as this is not something new, the traders did not pay much attention.

It should be noted that market participants have ignored not only regulators, but also hacker attacks against the crypto exchanges. A new victim of theft was DragonEx.

According to some analysts, the yesterday’s rally was a natural reaction to the crypto market after trading for a few months in narrow ranges. But in fact, the real reason was that Reuters reported it had a mysterious order of 20,000 BTC (~ $ 100 million) from an anonymous entity who may have increased activity in the market. The 20,000 BTC order was distributed to Coinbase, Kraken and Bitstamp in Luxembourg.

So for me the current dynamics is similar to that of March 30, when Bitcoin showed a sharp rise. You need to be cautious about growth, based on the triggering of a large number of purchase orders rather than on some fundamental or news factors.

What’s next for the BTC? Let the correction begin?

Bitcoin (BTC) traded around ​​$ 4,920 at the time of my writing. Although the coin is still 5% higher than yesterday, the market seems to be entering a correction phase, as many crypto currencies recorded this morning intraday losses, returning from the overbought territory.

On the upside, the price will have to recover above $ 5,000 as soon as possible to keep bulls dominating. The next target will be $ 5,300/20. There is also the 200-day moving average, which may be a major obstacle to BTC’s growth. In the financial markets, this line is considered an important level, as it often indicates a limitation of the growth trend. Last year, this moving average proved to be a reliable indicator. The decline below in May 2018 marked the beginning of a long decline over the next 1.5 month

If the price fails to break through the 200-day SMA, Bitcoin may enter a consolidation phase with downside bias. Technically speaking, BTC/USD reached the upper boundary of the 4-hour Bollinger Band indicator. And this may boost sales for the moment to the average Bollinger Band line in the ​​$ 4,370 area.

 

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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