Bitcoin price returned on the uptrend, rising by 0.32% today to 7,227 USD at 08:00 a.m. ET. The world’s most-valuable cryptocurrency is now up nearly 90% since the beginning of the year.
Bitcoin climbed to 7,500 USD on Sunday before going in correction but is still holding above 7,000 USD level. The strong appreciation happens despite the negative headlines surrounding Bitcoin exchange Bitfinex, whose parent company has been hit with a probe in New York, and the hack of Binance, which lost cryptocurrencies worth 40 million USD. However, Sunday’s rally comes amid “anticipation of announcements” at a high-profile industry event in New York.
Over the weekend some major bitcoin holders, known as whales, moved a staggering number of the digital tokens, potentially pushing the market higher, with the single biggest whale moving 47,000 BTC worth an eye-watering 343 million USD, according to data from Whale Alert, which tracks big cryptocurrency moves. Bitcoin whales have traded around 100,000 BTC over the weekend, with a total value of some 670 million USD. Most of the bitcoin whales have been moving their holdings out of major cryptocurrency exchanges, with just a few of the biggest transactions over the weekend involving cryptocurrency wallets moving bitcoin to an exchange.
Large Bitcoin and cryptocurrency transactions can prop up the market, with the holders not selling via online exchanges but opting to continue holding the digital tokens instead, known in the bitcoin and cryptocurrency sector as “HODling”.
Other cryptocurrencies are also into the green. Ethereum rose to 191.77 USD, while XRP climbed to 0.3199 USD. Bitcoin Cash and EOS and also on the rise, appreciating to 361.90 USD and 5.44 USD, respectively. Litecoin stepped back slightly by 0.88% to 87.33 USD.
Total cryptocurrency market value reached 217.109 billion USD.
Bitcoin price analysis
Bitcoin’s epic surge over the weekend has brought some much-needed elation back for crypto enthusiasts who have spent the best part of last year battered and bruised. The chart patterns playing out, however, look uncannily similar to previous market cycles so a pullback is expected.
Bitcoin went parabolic over the weekend notching up its first 1,000 USD gain since 2017. By the end of last week, BTC had outperformed many of its brethren and had reached critical resistance just below 6,400 USD. Unperturbed, ts surged past this on Saturday adding over a thousand dollars to reach a new yearly high of 7,480 USD by Sunday afternoon.
The 17% gain sent BTC to its highest level since August 2018. According to Yahoo Finance, “all five members of the Bloomberg Galaxy Crypto Index are up more than 8% this weekend, based on pricing from Bitstamp and Bitfinex”.
After the market relaxed, the analysts become more and more indifferent, doing their best to figure out where the cryptocurrency market is going to. These reflections led to some rather intriguing revelations.
Popular crypto trader Josh Rager recently noted that there are amazing similarities between the recovery from the bear market in 2015 and trends moving the cryptocurrency markets now. During this cycle, BTC reached a bottom of 200 USD, accumulated about 300 USD for months, entered the parabola, touching 500 USD, and then had a crowd.
Moreover, the three-day Super Guppy, a key long-term trend indicator, does not signal a “Buy” until an adjustment is made.
The Bitcoin does the same thing now but in a different price range. If the pattern is followed, the largest cryptocurrency may drop even by about 20% of current levels, and then the second phase of accumulation may take up to seven months. From there, the BTC must start a parabolic rally.
A final shakeout could induce a dump back to the 0.768 level which would be around 4,200 USD according to the charts.