Bitcoin price surges 10 percent in a mere 30 minutes following a spike of volume.
The entire crypto markets proceeded to follow leading to a total of 20 billion being added to the market cap going from $272 billion to $292 billion in the space of half an hour.
This comes after quite a week of positive news within the cryptocurrency space, such as the announcement that South Korea will be regulating its crypto market.
Or take the fact that BlackRock the $6.3 trillion investment powerhouse has set up a working group to investigate ways the world’s largest asset manager can take advantage of the cryptocurrency market. However up until this point there has been no sign of it being reflected within the markets.
Is this the mark of a turning tide for bitcoin and crypto?
So within the last hour $BTC, Bitcoin has seen some incredible energy, life and most importantly money thrown at it. With a break of a crucial resistance level at $6800 the next stopping point and resistance we will see is $7800. Nice to see after such a period of low volatility and price action. Life in the market once again.
$7800 is sitting right at the top of a descending triangle. A bearish pattern which has been in the making since January. So will be seen as by many as strong resistance and should be respected.
As a trader it is important to embrace both positive and negative price action. For example, I personally have a bearish mindset, so traders with a similar outlook may see these gains as unfortunate. But as we still remain within the bearish triangle I feel it is just a matter of time until we see Bitcoin sat back in the $5000 range.
On the contrary, if we see us blast through the roof of $7800 – something that is of course possible, though I feel unlikely. Then there is no reason we shouldn’t see a bull run on the horizon as $10k nears.
Looking at the market as a whole from a macro-perspective, something many fail to do as it is easy to get caught up in a short sighted state of mind. We can understand that if this “institutional money” is ever arriving they don’t want to pay more than they have to. As savvy investors and traders they will do whatever it takes to see the price fall and put themselves in the driving seat for where $BTC will head in the future. Make sure you’re sitting on the right side of the fence, which notoriously is on the side with the most money. In this instance, the “institutions”.
Although they are, slowly but surely changing as we have seen in the newly appointed Goldman Sacks CEO David Solomon. Who has admitted to prepping a launch of a proper cryptocurrency trading platform.