For now, Bitcoin (BTC) bulls seem to have decimated the bears. As of the time of writing this article, the leading cryptocurrency is at $9,800 — up over $2,500, some 38%, in the past 36 hours. This is around $800 short of the daily high of $10,600.
This rally has gotten so out of hand that BitMEXRekt, a Twitter bot dedicated to updating Crypto Twitter to liquidations on its namesake platform, has crashed.
Related Reading: Bitcoin Price Rips Past $9,000, Now Up 20% On the Day
Bitcoin Up 40% on the Day
According to , Bitcoin, as the time of his tweet, was up 42% on the day. This purportedly represents the asset’s fourth-largest gain in its history, and the largest since May 10th, 2011.
has moved +42% today
– 4th largest gain in history and largest since May/10/2011 (if comparing against daily returns).
– 15th largest two-day gain in history, Nov/18/2013.
Thank you China.
President Xi is the true Crypto Dad.
— Alex Krüger (@krugermacro)
So, what caused this move?
The seeming catalysts vary from analyst to analyst.
But , who summarized the narratives well, there are three reasons why Bitcoin surged: 1) the latest CME’s Bitcoin futures contract expired, something that has traditionally led to volatility, often in the upward direction; 2) President Xi Jinping of China revealed that he supports the development and adoption of blockchain technologies in China; and lastly 3) the chief executive of Crypto Capital, a firm offering financial services to industry companies including Bitfinex, was arrested, which Gurbarcs claims will allow clients of the firm to “get some of [their] seized [money] back.”
3 reasons why surged today:
> CME Bitcoin futures expired today (4PM London time, last Friday of the month).> President Xi Jinping supports blockchain in China.
> Crypto Capital CEO arrested. Exchanges, such as Bitfinex, may get some of the seized 850 million back.
— Gabor Gurbacs (@gaborgurbacs)
Related Reading: Bitcoin Macro Bullish After Transferring $11 Trillion in Wealth Over Past Decade
Slight Reversal Possible
While this is move is undeniably bullish, some are starting to expect a pullback. that Bitcoin’s latest four-hour candle, which reached as high as $10,600 on BitMEX, is a “perfected Tom Demark Sequential 9.”
Bizniz notes that “a TD 9 typically indicates trend exhaustion,” implying that there may be some stagnation or a healthy pullback before a resumption of the uptrend.
Indeed. He added that according to Tone Vays’ take on the indicator, “we may see a one to four candle pullback (four to 16 hours) and then resume up.”
BTC 4hr:
Current candle is a perfected TD9.
A TD9 typically indicates trend exhaustion.
However, It has occurred well above the TDST line (red dots). Which is a signal that the trend may continue.
According to we may see a 1 to 4 candle pull back and then resume up.
— Nunya Bizniz (@Pladizow)
Featured Image from Shutterstock