Bitcoin rallies 15% to its highest level since November
Bitcoin rallies – Bitcoin briefly touched the $ 5,000 based on the exchange Bitstamp Luxembourg. Another virtual currency was also higher, with ether and XRP both rose about 6 percent. Came after a big slump for the cryptocurrency market last year.
Bitcoin jumped suddenly on Tuesday, after months of relatively low volatility in asset previously known for wild price changes.
The world cryptocurrency price soared more than 15 percent higher to almost $ 4,800, according to data CoinDesk, reaching the highest level since late November.
Bitcoin also briefly touched $ 5,000 based on the exchange Bitstamp Luxembourg. The digital asset has added more than $ 14 billion of market value in the last 24 hours, according to CoinMarketCap.
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The reason for the price suddenly jumps was not immediately clear. Another virtual currency was also higher, with ether and XRP both rose about 7 percent.
Experts due to the breakout of the price increases are closely watched resistance level of $ 4,200. Bitcoin has been hovering around the $ 4,000 mark for several months.
“Bitcoin break above $ 4,200 this morning was very important because the market has been watching the level for a while,” Dead Greenspan, senior market analyst at eToro trading platform, told CNBC. “No doubt some incoming orders and stop losses are grouped just above.” Which means that certain algorithmic trading has kicked after reaching this higher level.
Came after a big slump for the cryptocurrency market last year. Bitcoin fell more than 76 percent in 2018, and is still well below the all-time high near $ 20,000 was notched in December 2017.
“Bitcoin has traded range bound for a while now and shaking off some of the negative sentiment which accrued in 2018,” Charles Hayter, the chief executive of the company’s digital currency comparison CryptoCompare, told CNBC.
“This trigger is through volume led drive price action and trigger price algorithm on a breakout.”
As for the other two coins with the market volume, Ethereum and XRP, we have not seen a lot of enthusiasm yet. Remember, Bitcoin is a trendsetter for the crypto market and spill effects cannot be avoided.
Looking at the price XRP, it appears that support of $ 0.30 is still in place and during this hold, I think the path of least resistance and above. In addition, it is important to remember that it is much easier to grow XRP price 2X or 3X compared to the price of Bitcoin. We have seen this concept many times in the equity market where large-cap stocks require some time to make a profit of 100 percent, compared to some of the low price and high potential stocks.
In short, the steps we have seen today is mainly due to the strong momentum that has been building for some. As I explained in my last article, the smart money is mostly interested in engaging in a bear market because of the risk to reward ratio is at its peak. Bitcoin has the potential to topple the $ 100,000 and it was only a matter of time when this becomes a reality. I’m not saying that fiat money will be gone, but the way the central bank manages monetary policy, in addition to high levels of government debt, will bring shine at the price of Bitcoin again.