By : In the U.S. market and on strictly regulated crypto exchanges such as Bitstamp and , the price surpassed $8,900 to achieve a new 2019 high at $8,939.
Within merely hours, the price climbed from $8,000 to $8,939, by more than 11.7 percent against the U.S. dollar.
The price records a big overnight rally following six days of stability (source: coinmarketcap.com)
The abrupt upside movement of the price follows its 100 percent year-to-date gain against the USD. As of May 27, is up 136 percent year-to-date with the “real 10” volume of hovering at $1.6 billion.
The “real 10” volume, which calculates the real daily spot volume of by evaluating the volume on exchanges known to have verifiable volume by Bitwise Asset Management, is up nearly seven-fold since March, indicating a clear increase in interest in the asset class.
What are the factors behind bitcoin rally?
Technically, when the price surpassed $7,000, analysts including global markets analyst Alex Krüger stated that the dominant crypto asset entered a bull market territory.
now in bull market territory after an intraday blow-off top.
R: 7000, 8000
S: 6400, 6000Old levels not as valuable, hence why above 6400 only looking at round numbers as major resistance.
Hourly volume at Bitmex was the 2nd largest ever after Sep/5/18.
— Alex Krüger (@krugermacro)
The price recovered to $7,000 on May 11. Since then, within three weeks, the price has added nearly $2,000, rising by 27 percent.
The stunning recovery of can be mainly attributed to three factors:
- Rise from $3,000 to $7,000 placing bitcoin in a bull market territory, raising momentum
- Volume on regulated platforms like CME surging, indicating a significant increase in institutional interest
- Volume on exchanges and Google Trends popularity for the keyword “bitcoin” rising, signaling the rebound of interest from retail investors
Behind the three factors is likely the block reward halving of that is expected to occur in May 2020.
Every four years, the network experiences a halving of block rewards which declines the rate in which new is produced by miners.
Miners receive less for their work of securing the and processing transactions and that leads to a drop in the supply of the asset in the global market.
An impactful fundamental factor like the block reward halving is likely behind other factors such as the rise institutional and retail interest because of the sheer momentum of the crypto market in recent weeks.
The nine percent rally of leads the rest of the crypto market to surge in value (source: coinmarketcap.com)
Earlier this month, when the price was hovering at around $7,000, Krüger stated that technical indicators suggest the asset is overbought.
But, he emphasized that due to the momentum of in late 2017, despite the overbought signals, the price went on to achieve a new all-time high at $20,000 from $13,700.
“Last time was this overbought (RSI) on a daily chart was December 6, 2017, with price at $13,700. Back then, a parabolic move ensued,” the analyst said.
Throughout May, even investors who have expressed significant optimism towards the medium to the long-term performance of have said that a pullback is likely and that a minor correction would be for the market.
The crypto market has shown no signs of an imminent correction and based on the recent momentum of the market, it is entirely possible that the market continues to climb without a substantial pullback like many expected.
Big predictions coming back
As the price achieved a new all-time high off of a 100 percent year-to-date gain, investors have started to reaffirm their long-term forecasts on the asset’s trend.
There’s very little supply between here and new ATH.
$28,000 still in play.
— Max Keiser, tweet poet. (@maxkeiser)
Max Keiser, an early investor in the crypto venture capital space and the host of Keiser Report on RT, said that to $28,000 is still in play, anticipating a surge in price above its record high.
Click for a real-time price chart.
Published at Mon, 27 May 2019 08:23:57 +0000
