By On 25th October, Bitcoin took an unexpected bullish turn and shot up by more than $1000, following a flash crash and a more extended period of uneventful trading.
At the time of writing, Bitcoin stands at $9,663 on Coincap with higher liquidation taking place on many cryptocurrency exchanges. Today marked the first time that bitcoin has shot up the highest after the devastating drop to $6500 that occurred in August 2019.
Since then, Bitcoin has been experiencing a flat trade period of averagely $7500, which financial analysts predicted could only be followed by a significant fall or rise.
Bitcoin’s Bullish Run
Many crypto traders hardly anticipated BTC’s success, although it is statistically backed up by its bullish-predictive behavior in recent months. The Wolf of All Streets Scott Melker wrote on Twitter:
“Very likely to close the month with a bullish SPF. Very, very rare on the monthly chart. Any close above that red line would qualify. There was a ton of demand and liquidity engineered in the past few days.”
BTC’s Recent Flash Crash
The flash crash that occurred two days ago caused an 8.7% loss by crashing from around $8,200 to $7,540 and was said to have been caused by a low network velocity.
CEO of Byte Tree, James Bennett said that velocity tracks how actively BTC moves through the economy:
“Velocity has been slowing significantly over the past weeks as transaction volume moves over stablecoin such as ether. Ultimately, this depressed demand for the Bitcoin network has lead to this recent drop in price.”
Will BTC continue to rise?
Despite bitcoin’s bullish behaviour, market analysts are speculating that today’s move could indicate a reversal to the recent volatile behavior of bitcoin. Mati Greenspan, Senior Market Analyst at eToro Global Social Investment Platform, wrote in note clients:
“Given the connection that crypto influencers have been making between stimulus and crypto lately, we will probably see a much swifter reaction in Bitcoins price than we usually do.”
Comments