Bitcoin Sets New ATH For 24h Volumes! Breaks through 7k Resistance Like It's Paper But Gets A Massive Rejection At 7k — What the heck is going on?

What a crazy day today for Bitcoin maximalists, hodlers and traders, or those who just feel that way. A parabolic run-up brought Bitcoin to levels it wasn't on for the past nine months, signaling a bull market in the vicinity. Nevertheless, we should not get carried away by emotions or let down our guard now and start looking into Lambos quite yet.

source

What's interesting about crypto markets and prices is the fact that we can never really know what's pushing it in either direction. The best thing we can do is a massive amount of research to be well equipped to speculate on all of the factors, events and instances leading up to a price swing of such a large magnitude accompanied by the wild volatility which we were used to getting our dopamine hits from not very long ago.

It was then, during the peak of the Bitpandamic when people, especially new "investors" — adrenaline-infused, dopamine junkies inspired by short term profit — got hooked on the overwhelming joy of acquiring stupendous profits for very little amount of work involved other than having the obligatory, large enough chunk of change and a courageous, kamikaze-like mentality necessary to FOMO in at 15k.

Needless to say, those — I'm here for the tech but can't differentiate bitcoin from cryptocurrency, let alone tell you what a blockchain is, but I have some Bitcoins — kind of "investors" or more precisely, ill-informed gamblers, got rekt rather heavily when the speculation bubble burst at 20k. Coinciding with the rise and fall of Bitconnect, the downward spiral that set Bitcoin plummeting all the way down to somewhere around 3k per coin, caused a lot of pain and misery for the ignorant masses who ingeniously bought into the hype and were forced to capitulate at the bottom.

In an attempt to not be like the Scumbag Steeves of crypto, I was inspired to share some clues I found which offer a some insight in the current market sentiment, what might be driving the price of Bitcoin up, and potentially even foresee a move that's imminent yet greatly obfuscated by our easily deceivable minds.

So, what made Bitcoin go parabolic and hit the 7.5k mark?

Like every other time when trying to dissect such a move in order to find a lone suspect for the incident, we are left facing an entire plethora of different suspects which, combined with those who stayed under our radar together, form the price we are currently seeing on CMC.

They include:

A mighty short squeeze

Induced by anon whale(s) pushing those who bet on the price of Bitcoin plummeting out of their short positions.

I can only try to imagine how much that must sting. To be a perma-bear in an upcoming bull market and getting stomped over by a seemingly random and obviously unexpected bull, must be a hard thing to recover from if one does not simultaneously have a long position.

Institutional investors

The cat is out of the bag, Fidelity, which began a custody service to store Bitcoin earlier this year, has already opened the doors to trading Bitcoin for a select set of clients and allegedly, in a weeks time they plan to open the floodgates by offering trading to all of their institutional investors.

In a study released by Fidelity on May 2nd, they found that 47 percent of institutional investors think digital assets are worth investing in and that 72 percent prefer to buy investment products that hold digital assets, while 57 percent choose to buy them directly.

It is well known that these investors will not get much of a chance to be exposed to altcoins as are only be able to trade Bitcoin so it goes without saying that this fact alone plays a major part in the recent, violent price swings.

Additionally, this could be the single reason to why altcoins haven't been performing well during this period.

CZ buying Bitcoins to replace the stolen funds

Most of you are aware of that Binance got hacked consequently losing access to 44 million USD of their clients' money, totaling to about seven thousand Bitcoin lost in the bottomless pit of the hackers binary net.

The fact that CZ now needs to replace his clients missing coins — obviously by buying Bitcoin — could also be one of the reasons to why its price suddenly went up.

Does this mean that Tether is going to print more of its shitcoins once again? Who knows. It might as well turn out to be the case.

KEY THING TO TAKE AWAY FROM THIS: Not your keys, not your Bitcoin.

What do you think?

These are the three major events I found to be of great significance to the current market sentiment. Apart from the compulsive FOMO some people get to experience during such run-ups, I was not able to find anything more convincing and fitting to explain why Bitcoin suddenly went from 5.2k to 7.5k.

For some of you, it might be interesting to point out how Bitcoin got to test the 7.5k resistance and how it was instantly rejected back to 6.8k from where it started to slowly gain upward traction once again.

Its parabolic trajectory — resembling the long-awaited high upward volatility of the imminent bull-run we are all eager to start doping on once again — is nothing to be overly excited about in the short-term because of the good old saying: "What comes up must come down".

Although I'm a perma-bull on Bitcoin and crypto in general, I can't neglect the daunting feeling of a forthcoming correction creeping in, expecting to see prices in the range of 3.5-4k when it fully corrects.

I say daunting, not because I FOMO'd into this hype-train, but rather because I might not be able to amass a healthy amount of fiat to invest in, what I anticipate to be the cheapest Bitcoin and altcoins we are ever going to get a chance to buy.

Anyway, these are just my two cents

Let us know your thoughts, what do you think has caused this exciting run-up and how are you playing this crypto game?

• Are you dollar-cost averaging?

• Buying at any price to HODL?

• Day-trading?

• Something else entirely?

Be sure to fill in the gaps for us because as always, more people thinking about the same problem will, in fact, come up with a much more coherent solution then a single person would have on his own.