Bitcoin, which has been swinging wildly throughout this week, has suddenly rallied back to 8,000 USD, somewhat putting to rest investor and trader fear the recent bull run may have already ended.
The Bitcoin price has risen around 50% over the last 30 days, pulling many other major cryptocurrencies with it, including Ethereum, Ripple’s XRP, Bitcoin Cash, Litecoin, EOS and Binance Coin.
The Bitcoin fell from 7,900 USD to 7,200 USD on Friday morning and whole Saturday was traded in narrow ranges around this value. Despite the 1,000-dollar decline, Bitcoin has outpaced some of the most optimistic forecasts and price models Even at a price of 7,200 USD, which the cryptocurrency reached on Saturday, the the digital money still outpaces the Stock-to-Flow (S2F) model with about 1,000 USD. Before Friday’s price drop, the analysts expected a potential adjustment to BTC’s price performance to the level of 6,000 USD. These predictions relied on huge gains over 7,000 USD, which creates another point for a new BTC accumulation in preparation for a new leap up.
However, on Sunday, the cryptocurrency appreciated by 9% to 7,981 USD at 02:25 p.m. ET. The growth was unexpected by the crypto community.
Bitcoin turned to the bulls once again on early May 19, exhibiting a rapid 7% hourly price gain, stoking the attention of several parties. One among them was the observant whales, which moved 5,000 BTCs in two separate transactions. As reported by WhaleAlert, an online cryptocurrency-transaction tracker, a transaction of 3,000 BTC first, calculated at 23.68 million USD was the first movement. Minutes later, alarms rung once again with 2,000 BTC worth over 15.78 million USD transferred from an unknown wallet to the controversy-riddled exchange, Bitfinex.
The total Bitcoin and cryptocurrency market capitalization, which lost some 30 billion USD in a matter of minutes on Friday morning, has now recovered almost all of that value and is back around 250 billion USD.
Crypto market recap
Cryptocurrency market coloured in green on Sunday with major altcoins rising significantly and recovering from the Friday declines.
Ethereum and XRP advanced by 8% each to 256.21 USD and 0.4082 USD, while Binance Coin and EOS rose by 6.5% each to 29.07 USD and 6.34 USD. \The biggest increase today was recorded by Bitcoin Cash, which appreciated by 15.6% to 419.55 USD.
After Friday’s sell-off, many analysts remained confident the bitcoin and wider cryptocurrency market would recover.
The cryptomarket has been celebrating a raft of positive news all this week, from retail adoption to legendary investor support. Bitcoin and cryptocurrency technically data is also showing the bitcoin price could be heading higher, with well-known bitcoin trader Eric Choe saying he expects the digital token to reach 22,600 USD sometime in 2020, which would be a fresh Bitcoin all-time.
Bitcoin price analysis
The price of Bitcoin rose by more than 10% after a sharp decline on Friday. Now the cryptocurrency continues to rise and may even test the resistance zone of 9,000 USD.
Last week, Bitcoin’s price rose significantly above the 7,000 USD resistance. The cryptocurrency broke many barriers close to 7,000 USD, 7,200 USD and 7,800 USD. Bitcoin even climbed above 8,000 USD and traded at a new year-to-date high close to 8,360 USD.
Later, there was a sharp decline under the 8,000 USD support, but the price remained well over 100 simple moving averages. The price broke the 7,200 USD support, but found strong interest in purchases close to 6,650 USD and 6,800 USD.
The bottom was formed at 6,645 USD, and the price has recently recovered. It climbed sharply above the resistance levels of 7,000 USD and 7,200 USD. Moreover, there was a break above the 50% Fibo retracement rate from 8,362 USD high to 6,645 USD low.
More importantly, there was a breakthrough over a major triangle with resistance close to 7,300 USD. The pair is now trading over the resistance of 7,700 USD and 61,8% Fibo retracement rate from 8,362 USD high to 6,645 USD low.
All of this is a positive sign and it seems that the price may continue to rise above the 8,000 USD barrier. The next key resistance above 8,000 USD is close to 8,350 USD. If bulls push the price higher than 8,362 USD, it will most likely open doors for rally rallies to resistance levels of 8,600 USD and 8,800 USD.
Bitcoin returned well after a sharp decline to 6,650 USD. Now it’s more than 10% green and it looks like it can keep going up to 8,200 USD and 8,500 USD. The main purpose of the bulls in the next sessions could be 8,800 USD or even 9,000 USD. The main downside support is close to 7,500 USD, 7,200 USD and 7,000 USD.