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The market is talking about a change in trend

Apr 4, 2019

On Tuesday, April 2, Bitcoin pump occurred. The cost of cryptocurrency rose to the $5100 level (Bitfex). The first wave of growth lasted a little less than an hour and was about $850 or 20%.

At the moment, it is difficult to give an exact reason for the abnormally strong rise in BTC prices. It is important to bear in mind that it occurred at substantially increased trading volumes, which continue to grow today. According to CoinMarketCap, daily trading volumes of BTC have exceeded $23 billion.

The statistics provided on this resource says that, for all the time of its tracking, the current trading volumes are maximum. In this case, it is necessary to understand that the previous volume peaks were recorded at the price level close to $17 thousand per BTC. Today, the price is more than three times lower.

This indicates a change in market sentiment – a trend. The breakthrough of a very strong technical level of resistance at the $4300 level was accompanied by an unusual increase in trading volumes and, accordingly, a robust increase in price. Given all this, we can assume that buyers will be able to continue the growth, to the next target at the level of $5600 and further to $6600.

Opinions

Omkar Godbole, CoinDesk analyst,  discuss a change in trend. In his opinion, the breakthrough of the psychological level of $5000 is a clear sign of a new bullish rally. But for further growth, buyers need to overcome the $5200 level, which has a 21-month exponential moving average (EMA). It will not be easy to overcome this level quickly, since the 14-day Relative Strength Index (RSI) is in a strong overbought zone, the output of which can send the price to $4400.

Mansur Huseynov, investment director of Cryptolife World also gave a remark, saying that most likely the bearish market period is now over. And then bitcoin will either remain in the range of $3000-$5000, or it will only grow in the future.

According to Nigel Green, general director of consulting company deVere Group, bears have completely lost control of the market. This proves the fact that the “winter ”phase is over.

Oliver von Landsberg-Sadie, the crypto-company of the BCB Group, claims that the sharp rise in Bitcoin prices was caused by one investor who distributed $100 million to three major exchanges. According to him, transactions amounting to 20000 BTC were carried out simultaneously on Coinbase, Kraken and Bitstamp. It has become a  reason for the BTC rise above $5000.

“There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC. If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour,” he said.

Most of the experts, analysts and fund managers discuss a trend change to an upward one. The so-called “winter” on the cryptocurrency market is ending, and it is clearly seen from the noticeably increased trading volumes from February 19 to 20. Since then, volumes have remained steadily growing.

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