Bitcoin: Experts are wondering about the reasons for the sudden growth of cryptocurrencies

  • And
  • +A

The last 5 days will be remembered spring to the rapid growth of the cryptocurrency. The total capitalization of the market rose from 2 April to 18%, to $174 billion, and daily volume BTC yesterday reached $23 billion Incredible figures, which are supported by the “surprise of the month”: a free rise of bitcoin from $4200 to $5300. It only remains to congratulate all those who have had open buy position.
Records of the week have inspired a strong movement and market altcoins. The unconditional leader there was Bitcoin Cash (BCH), which is a grasshopper jumped by 102% to a peak of $340. Daily trading volume has multiplied 8 times. Litecoin (LTC) in the time added up to 60%, with the increase almost 4 times.
From the technical analysis it should be noted the importance of $5300 for BTC. Through this level is the 200-day moving average that financial markets always pay attention. For large investors it is an indicator of the market. The price is above this level, note the predominance of purchases in bitcoin. Note that the bulls failed to immediately break through this important level, and therefore more cautious parties have launched a wave of profit-taking, again discarding the BTCUSD to $4800.
However, as they say in the stock market, “not yet evening”. The technical analysis indicates that the rise above $5300 is quite possible. Moreover, it will open the way to $6200, that is, will fully recoup the decline Nov. Bullish sentiment certainly persisted, and on the weekends not excluded pleasant surprises. At least in the short term about the massive sale, however.
And still continues to torment the question, what is the actual reason for the sudden spike in prices. At the moment found out that a catalyst could be a large order to buy 20,000 BTC, scattered among the three main exchanges. Its implementation has caused the automatic activation of a large number of buy orders and launched a wave of triggering stop orders on $500 million of short positions.
Data Analytics company Flipside Crypto has shown that even 2 weeks before the rally, the volume of activity on the BTC wallets have grown substantially. This also contributed to the momentum. However, on April 2 belonging to Binance cold wallet “lost” more than 21000 BTC. If the movement of funds has occurred at some other time, he would not be given much importance. In the end, the conclusion of the next manipulation of the market, which can be quite short.
_____________ Alexander Kuptsikevich,
Analyst
FxPro