Traders poured $10mln into crypto markets during explosive trading sessions that ran late into the night, taking alt-coin markets well into the green across the board with leaders Bitcoin Cash, Metaverse and NEM all surging in price - Where is the market headed next?
Market leader Bitcoin Cash BCHABC has surged 42% to near $250 as bullish sentiment swept the markets during the last 24 hours - will it continue today? Going by the combined order book it seems another 5% move on BTC is possible and that could continue to move alt-coin markets higher.
Data provider: Bitcoinity.org
As media pundits and analysts attempted to decipher yesterdays breakout, some labelling it an obvious technical move, while others said it could of originated from April fools posts making bullish sentiment rife (with claims being Buffet had bought in and the ETF was now approved by the SEC)
Data Provider: Poloniex & Investing.com
From a technical view it was a mean reversal to the 30 weekly moving average, a move that has occurred several times in the past year and failed to extend over.
Looking at fundamentals - some may feel it is due to the transaction volume surging and developments in the ecosystem as a whole.
Wether markets will continue to extend another 5% - is likely looking at combined order book data, as traders so far are adding to their buy orders just shy of the $5k level, during the Asian session.
Zooming out and looking at the macro fibonacci levels from previous 90 day swing high-low from the all time high of 2017 - we see how price action is stranded between the lower levels, with the 50% retracement sitting at $11k and the next key support being back at $6880, a range that Bitcoin straddled for many months prior to the Christmas sell offs.
Also the spike in transactions we noticed over the past two days has continued with transactions per second staying up over 370k
General Uncertainty As A Driver?
Although there is a-lot of uncertainty in the mainstream media surrounding what is driving this move exactly in Bitcoin and crypto markets as a whole, what we know is clear about this breakout, by looking at market data purely - is we are once again seeing heavy bidding and that always causes the markets to rocket up - yesterday starting mild in Asian trading and continuing to really breakout during European trading, which then caught an equally strong demand during the NY session and snowballed further.
Alt-coins and majors are still in strong favor today during the Asian session. If prices can continue to breach the $5k resistance today, we may see further momentum aid the move to close above $5k today.
Remain risk aware there is no such thing as a sure thing - what is also probable is a pullback before this as traders take profit and reposition for the weekend. So as always use limit orders and trail profits wisely.
What really depends is how long demand will run, and with outside factors in the stock markets like Lyfts sell off yesterday and growing uncertainty about the recovery of the S&P, crypto may become the alternative hedge people desire.
$4700 Weekly moving average (30 week)
$4200 Previous range