Curious what is causing Bitcoin to surge? I will tell you...
Bitcoin is surging, and here's why...
Bitcoin went up by almost $1,000 dollars in less than an hour yesterday, going from roughly $4,000 all the way up near $5,000.
(Source: https://finance.yahoo.com/news/algo-hedge-funds-join-cast-113107948.html)
And it has even more follow through today...
As I type, prices are sitting right around $5,200.
Awesome!
But what is going on?
Like most cases where bitcoin pops or drops, there wasn't a readily identifiable cause.
Though, I can tell you that it was certainly not caused by some folks misinterpreting some April Fool's Day jokes about the SEC approving a bitcoin ETF and that caused prices to spike, like some in the media would have you believe.
No, the most likely cause was a little simpler...
The most likely cause was this:
Prices were sitting right near a crucial point on the charts.
The $4,200-$4,300 coincided with the 15 month-long downtrend line that prices were yet to break even once in 15 months.
Also there was significant horizontal resistance at that level.
What happened was a large buy order came in (or just enough buying pressure to trigger the large buy order to go off), of roughly $100 million (20,000 bitcoin) and that buy order firmly pushed prices past those major resistance levels.
Once that happened the automated trading programs took over.
Buy signals flashed for the computers and they hit the buy button, fiercely.
Since most of the sellers were out of the market at this point, there wasn't much selling pressure to counteract the algo bot buying.
The result?
A $1,000 dollar surge that so far doesn't have an end in sight.
Isn't crypto fun? :)
Something like 17 crypto algo funds were created in just the last 7 months, with many more created stealthily over the past few years.
These are the guys that are likely moving the markets on a daily basis.
Some more of the specifics surrounding what likely pushed up prices can be found here:
https://finance.yahoo.com/news/algo-hedge-funds-join-cast-113107948.html
Stay informed my friends.
-Doc
The main reason for the price surge in my humble opinion is the start of a new tax year beginning April 1st.
In the US the new tax year is January 1st. Where are you referring to?
The UK. I thought it was possibly the same in most places but i guess not. Maybe Eu is same though.
The surge did happen right around when Asia opened so perhaps it could have something to do with their tax dates. Though my guess is that it wasn't related to taxes. :)
In India too FY begins from 1st April only.
It was me! 😂 https://steemit.com/bitcoin/@shanghaipreneur/bitcoin-like-whoa-gdxudqi9
You helped run the price up?
Maybe. It’s all bots anyway. If one of them tagged onto my $100k BTC tweet it could have contributed. There are much more unlikely explanations out there people believe in!
Posted using Partiko iOS
Very true. And we know that bots scan headlines and other bots play off those bots so really you just need a spark and then boom time.
That and people want the bull market to be over so badly they're willing to jump on anything that moves. LOL
Yep, there is a bit of FOMO as well I am sure. It will be interesting to see how high we go here and how much of the gains hold.
Very interesting 🧐
Seems pretty reasonable to me.
Bitcoin and Cryptos explode and the historical record of buying volume was broken yesterday. Nevertheless, it must be kept in mind that no stock market is regulated and that these figures are unverifiable. But it's having an effect on investors
Yep, that is true. We did see record volumes.
YEAH ITS A SUDDEN RISE AFTER A LONG WAIT !!! HOPE THE CRYPTOMARKET WILL GO IMPROVING HIGH ....
So far, so good. Hope it continues.
If it was anyone misinterpreting anything, it was bots...which people might forget, actually do read the news and tweets now days. Well...some of them do anyway. And no one talks about the crypto bots that regularly move massive amounts of money. Can't say it was likely a bad investment though. Perhaps a bit quick...and probably a very bad day for traders that had sales in too low.
That is true, they do scan headlines, but usually from places like Reuters or Bloomberg or some other major news outlet. Not crypto blogs...
Well...people putting way too much money behind a stupid bot that's following different sources in a dumb way is not new...but I do seriously doubt it. Of course, before a bot crashed the market based on a tweet that Obama was dead forever ago, I wouldn't have though that was possible. Well...I do think it was probably people putting way too much money into a stupid bot...but not one that reacted to a blog. It could have totally be a few dumb bots reacting to each other though.
Maybe by some sort of crazy, it was fully intentional though. Maybe someone was buying a ton because they knew it would be worth it, and didn't care much about if they bought it too high, because they're gonna be selling it way higher. Or they were manipulating the market.
Ding ding ding... that very last point is the one I think is most likely the most accurate one.
In my opinion, someone loaded up knowing where were on the charts, that if they pushed the market up a bit, the bots would run with it.
So they did just that...
Lambos for everyone!
These people must have a whole list of manipulation techniques...
You'd be surprised... or perhaps you wouldn't. :)
I agree with you... I think the same whales are going to sell profits very soon
Hopefully not. That $4,200-$4,300 area should now act as support should prices fall back that far.
Nasdaq listing Bitcoin futures.
Posted using Partiko Android
When is that?
Congratulations @jrcornel! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Vote for @Steemitboard as a witness to get one more award and increased upvotes!
Cool, thanks.