On April 1, the price initiated a large 19 percent rally from $4,200 to $5,000, peaking at $5,300 the next day across several major crypto exchanges.
The price surged by more than 19 percent in the past week but has slightly retraced since (source: coinmarketcap.com)
The rapid upside movement of , which occurred in minutes, is said to have been triggered by two major factors. At $4,200, there were around $80 million worth of sell orders. As the sell orders were absorbed by buyers, it liquidated $500 million worth of short contracts.
The absorption of massive sell orders, a short squeeze of contracts, and the lack of resistance above $4,200 are considered as the main catalysts of the recent bullish movement of the dominant .
Only Just a Start For bitcoin
According to a analyst, the 19 percent price increase of was triggered by buy orders amounting to about 20,000 , worth nearly $100 million.
Technically, if the absorption of sell orders at the $4,200 resistance level, which failed to test for more than three months in the first quarter of 2019, the orders would amount to well over $200 million.
But, if the rest of the movement from $4,200 to the $5,000 level was triggered by 7,000 , the analyst said that a promising rally is expected as block reward halving approaches.
: Little something for ya…
1. A reminder of how beautiful the 200-day and 200-week moving averages are.
2. ‘s 200-day median, which just flipped to bullish and should serve as support in the next few months (currently at 4k).
— David Puell (@kenoshaking)
“Three 7,000 buy orders were the catalyst for this recent pump. That’s 0.1% of the supply bought up instantly. In 416 days the number of created every 24 hours cuts in half. 328,500 LESS will be created per year. This pump was just the start. Be ready,” the analyst .
The 7,000 figure came from a Reuters report, which cited Oliver von Landsberg-Sadie, CEO of firm BCB Group.
Earlier this week, Landsberg-Sadie :
There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 . If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 in an hour.
Why is Halving So Important?
Analysts are carefully observing the price movement of ahead of its scheduled block reward halving in 2020 because historically, has tended to surge in price a year before its halving starts.
Large price orders prior to a block reward halving can be considered as a sign of confidence because the rate in which is produced through drops following each halving.
Accumulation of before a halving would imply that investors foresee the price of the asset rising as its circulating supply becomes more restricted over time.
Either from Dec ’18 low or from retest of same (circa analog dbl bottom in 2015) it would not surprise me if enters a new parabolic phase.
— Peter Brandt (@PeterLBrandt)
In consideration of all factors, Peter Brandt, a widely recognized technical analyst, said that it would not surprise him if enters a new parabolic phase during which it recovers beyond $20.000.
Whales are Buying Too
On Thursday, on CNBC’s Squawk Box, Fundstrat Global Advisors head of research Thomas Lee said that , or large holders, began to accumulate the asset once again in recent weeks.
Lee cited various positive developments pertaining to the crypto industry and fundamental indicators such as improving infrastructure and rising volume.
“ had a rough 2018 and for much of 2019, it’s been steadily climbing, and from what we can gather, it’s because there have been positive things taking place. You know a lot of the old whale wallets are buying so it’s been slow accumulation,” he .
Whales, most of whom sold relatively large portions of their holdings at $20,000, could be accumulating more in anticipation of positive price movements ahead of the block reward halving.
Published at Sat, 06 Apr 2019 13:09:56 +0000
