{"id":410757,"date":"2020-01-13T15:00:14","date_gmt":"2020-01-13T15:00:14","guid":{"rendered":"https:\/\/uniquehot.com\/?p=410757"},"modified":"2020-01-13T14:52:56","modified_gmt":"2020-01-13T14:52:56","slug":"comparing-current-bitcoin-breakout-to-historic-october-china-rally","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/comparing-current-bitcoin-breakout-to-historic-october-china-rally\/","title":{"rendered":"Comparing Current Bitcoin Breakout To Historic October China Rally"},"content":{"rendered":"

Last week, Bitcoin price<\/a> broke out of its 45-day long consolidation range in the low $7,000s and rocketed to over $8,000 where the first-ever cryptocurrency is holding tight above resistance turned support.<\/span><\/p>\n

The strong move is the first rally since the historic October pump driven by news that President Xi Jinping spoke out in support of the blockchain technology Bitcoin is built on. But how do the two rallies stack up and what can we learn about the differences or similarities between the two?<\/span><\/p>\n

Comparing the October 2019 China Pump Against Bitcoin’s Latest Breakout<\/h2>\n
It was late October, and Bitcoin price<\/a> had just fallen through support around $7,400 after spending 30 days consolidating to set a new local low when Chinese President Xi Jinping urged his country<\/a> to stay on the forefront of developing the future through the blockchain technology that cryptocurrencies like Bitcoin and many others are built upon.<\/span><\/p>\n
Related Reading | Bitcoin Is Fearfully Following Former Bear Market Fractal, New Lows Possible<\/a><\/strong><\/em><\/p>\n
The nod of support caused a FOMO effect and feverish buying of the leading cryptocurrency by market cap. Not only did the ferocity of buyers drive up the price of Bitcoin, but those who shorted Bitcoin on the way down were also forced to close out their positions, further driving up the price in a massive short squeeze.<\/span><\/p>\n
The resulting move was Bitcoin\u2019s third-largest single-day gain on record, however, the rally failed to find solid ground above $9,000 and plummeted back down to lows around $6,500.<\/span><\/p>\n
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For the record the Xi pump broke the downtrend on high volume.<\/p>\n
So we already technically "broke out" once.<\/p>\n
it failed.<\/p>\n
That was a 30 day consolidation period.<\/p>\n
The recent one was a 45 day consolidation period. pic.twitter.com\/92wVR4iqjo<\/a><\/p>\n
— CryptoISO (@crypto_iso) January 13, 2020<\/a><\/p><\/blockquote>\n