- By Pierre-Alexandre
April 2nd, 2019
The price of the leading cryptocurrency has hit the $5,100 for the first time in five months, with the price increase leading to other cryptocurrencies also recording gains over the past few hours.
BITCOIN IS BACK, BABY 🔥📈— Pomp 🌪 (@APompliano) April 2, 2019
Bitcoin hits the $5,000 mark
The BTC price rose to reach the $5,100 mark earlier today on Bitfinex and some cryptocurrency exchanges, making it the first time it has reached that point in five months. The price of $5,106 is also the new all-time high for this year.
The rise in price came after months of Bitcoin trading between $3,217 and $4,000.
The slight Bull Run by Bitcoin has also seen other altcoins record gains over the past few hours. Even though BTC has dropped to the $4,700 region, the price of other altcoins is still bullish. The initial push saw BTC cross $5,000, but analysts believe it is now finding stability around the $4,700 mark.
Data pulled from Coinmarketcap shows ETH is currently up by 10 percent for the day and is now trading at $156 per coin. XRP, on the other hand, has gone up by 8,8 percent and is currently trading close to the $0.34 mark. The other leading cryptocurrencies including, EOS, Litecoin, Bitcoin Cash, Binance Coin, Stellar, Tron, and others are all trading in the green.
At the moment, there is no singular factor for the sudden spike in price.
For the love of god, stop trying to attribute every Bitcoin price movement to a specific event.— Crypto Bobby (@crypto_bobby) April 2, 2019
In November 2018, the BTC price was hovering above the $6,500 mark but plummeted to the $3,000 region following the Bitcoin Cash hardfork.
However, the spike in price could be tied to an increased interest in cryptocurrencies. There has been an increase in the desire for knowledge regarding Bitcoin and other digital currencies recently. This interest alongside the Bitcoin Lightning Network reaching an overall capacity of $5 million for the first time yesterday could have led to the BTC price rising past $5,000.
In another theory, the price increased could have been caused by spot buying pressure entering the market. According to Samson Mow, the BTC price surge today was created by more people buying and holding the cryptocurrency. The buying pressure helped push the BTC price past the critical technical levels of resistance such as the $4,200 that held until November last year and its 200-day moving average which stood at $4,700.
“Today’s spike in Bitcoin’s price was caused by more people buying and holding.”— Samson Mow (@Excellion) April 2, 2019
- Samson Mow
(Media, feel free to quote me in the articles.)
While most analysts believe that the recent breakthrough is a sign that the bear market is coming to an end, some analysts like Josh Olszewicz are not sure that it is over just yet. The analyst who writes for Brave New Coin pointed out that the daily RSI strength of Bitcoin reached 85 following the spike in price. He noted that the last time Bitcoin’s daily was this high was in December 2018, and the price plunged at that time.
Therefore, he advises traders that the RSI value shows that this is an excellent time to sell as the price might drop soon.
Josh is not the only analyst that thinks the price would plummet. The Crypto Dog, a crypto analyst, predicted that the BTC price could experience a pull-back so as to return to its neutral price around the $4,300 and $4,600 regions. The analyst, however, believes that the next resistant level is at $5,000 which would increase to $5,500 over time.
If you're feeling mad FOMO, I'd wait until at least a retrace to ~4700-4750 pic.twitter.com/OA66DPboM2— The Crypto Dog📈 (@TheCryptoDog) April 2, 2019
What if the $4,700 mark holds?
At the moment, BTC is trading around its 200-day moving average, and if it can sustain that price or even climb higher by the end of the week, then it could imply that the bottom of $3,100 may hold and the bear cycle might be over or coming closer to its end. At its current price, most institutional investors and crypto traders believe they are still buying the dip.
However, if BTC price can continue to find support above its current position, then there is a possibility that it would soon test the next resistant level at $5,800 and even possibly surge past the $6,000 threshold.
Bitmex experiences large liquidation
Bitmex, a famous margin trading exchange experienced massive settlement on its platform, worth roughly half a billion dollars earlier today.
This happened after the BTC price rose to its new year high. Considering the fact that the swap contract was worth around $2 billion, the liquidation carried out earlier today might have affected a large number of people.
Bitmex is the primary platform for traders looking to get a unique combination of liquidity, leverage, and affordable transaction fees. Due to a large number of users on the platform, some analysts had predicted that such a high amount of liquidation would take place when the BTC price surges higher.
Changpeng Zhao, the CEO of Binance was a bit happy by the liquidation on Bitmex as it led to bears losing money following the price breakout.
Crypto investors still bullish
While this latest price break out might not last, there is a general optimism amongst cryptocurrency investors that a rally would soon occur. An analyst on Twitter, Crypto Thies recently issued a buy signal for the first time since 2015. If the BTC price can keep up the newfound momentum for the remainder of this month, then a Bull Run could take place over the coming months.
Goosebumps. pic.twitter.com/GummIRwQKg— Crypto Thies ♛ (@KingThies) March 26, 2019
While there is a mixed prediction regarding the next direction of BTC price, the recent growth recorded is a sign that most crypto investors and enthusiasts have faith in the crypto space and believe a Bull Run might not be far off.
Bitcoin Bullish Hopium Mirror Image— Josh Rager 📈 (@Josh_Rager) April 2, 2019
If $BTC price is following the mirror image prior to capitulation... it would be at a slight consolidation before an upcoming pump
This chart is for mere fun and not up for debate
It could continue to pump to $6,200 but that's where I short pic.twitter.com/JWl3BTFGSF
Bitcoin Non-Linear Regression Curve. The most BTC has fallen below the lower curve is about 19%. Today's price equivalent would be about $3100. Is the bottom in? pic.twitter.com/321jlc9jLI— Nunya Bizniz (@Pladizow) April 2, 2019