Thursday morning Bitcoin trading saw a tremendous surge from just under $7,000 to almost $7,800 in the span of one hour, and other digital currencies soon followed the same pattern. Bitcoin first broke $7,000 in April on the 7th, rising to nearly $7,200 on the 9th before tanking to under $6,800. Since then it hasn’t been able to break the resistance at $7,000 until approximately 7:15 AM EST. In the run up to $7,000, it gained momentum and peaked at $8,087 at 7:45 AM EST before sliding down slightly and settling at just over $7,700.
The 24-hour volume of Bitcoin trading also skyrocketed during the pump. Total volume had been rising steadily over the course of the 24-hour period leading up to the spike, rising from $4.2 billion to $5.5 billion over the course of the day, before its sharp rise to $7.9 billion.
We are not financial advisors, and this is not financial advice. However, it’s not a bad idea to look at the various trading signals. According to Trading View, we’re seeing buy signals among the oscillators tracked, and strong buy signals according to the moving averages.
Bitcoin was not the only crypto to increase in value significantly over the last 24 hours. In fact, most of the top 100 cryptocurrencies increased in value according to CoinMarketCap. Looking at the patterns for the top 10 digital assets, we can see that prices were already rising steadily for a number of coins, leading up to the sharp increase for Bitcoin. For example, Ethereum and NEO have been rising steadily over the past 7 days, while EOS and Cardano started trending up over the last two days. This would require further analysis, but it could be interpreted that some of these digital assets may serve as indicators for Bitcoin price movement. Or, the opposite may be true, where overall Bitcoin trading volume, which has been on the rise, may indicate future price movement for a number of alt coins.
There may be a number of factors outside of crypto trading that have had an impact on the price. Major newsworthy items to consider include the Mark Zuckerberg congressional testimony, and tax day.
Prior to the Zuck’s testimony, Facebook stock prices were falling, possibly due to negative sentiment about the Cambridge Analytica data usage in the 2016 presidential election. However, during the course of two solid days of testimony, Facebook stock prices have been moving back up. Certainly it appears as though Zuckerberg is prepared to cooperate with regulators, and while any regulations that do get put into place may include a degree of censorship and limitations on the use of private data, they probably will not have a significant impact on Facebook’s bottom line. In a worst-case scenario, advertisers will have less relevant audiences to put their ads in front of. While this will increase costs for these companies, it is unlikely that they will stop advertising on Facebook with what data they are able to use.
Tax day is coming up in less than a week. We might expect that a number of crypto traders have already done their taxes, and have allocated a portion of their refunds to investing in digital assets. This may be more amplified over the next week, and again when refund checks are actually distributed.
Regardless of the cause, it is very good news that Bitcoin is on its way back up. We’ll keep watching and reporting, and perhaps we’ll see BTC get back to the $20,000 level again before the end of the year.