Bitcoin Moves From $6,800 to $7,400 Within 30 Minutes
On early Tuesday morning, Bitcoin began a slow uptrend up to the heavily contested $6,800 price level. For those who are unaware, Bitcoin has tested the ~$6,800 level over three times in the past five weeks, leading many analysts to believe that it is an important resistance level.
Upon reaching $6,800 not one hour ago, Bitcoin immediately broke out, seeing an influx of volume as Bitcoin began passing through $6.8k, $6.9k and $7k as if there was no resistance was present. Bitcoin eventually reached $7,200, and stumbled around that price level for twenty minutes.
However, it quickly became apparent that Bitcoin was painting a short-term falling wedge at the ~$7,200 price level, as prices converged.
Eventually, Bitcoin saw a secondary volume influx, moving from $7,200 to $7,400 very rapidly. As of the time of press, Bitcoin has currently found a home at approximately $7,400, not moving too far upwards or downwards.
As Normal, Altcoins Follow Bitcoin
Altcoins have notoriously followed Bitcoin for most of their lifecycles, with the collective value of cryptocurrencies often posting similar percentage gains in comparison with the world’s most prominent crypto asset.
So as normal, Altcoins have followed Bitcoin in this most run-up, albeit posting not as substantial gains as 10%. Ethereum saw a 7% rise, while XRP and Bitcoin Cash saw 8.5% gains.
Volume Rises To Two-Month Highs
With this most recent surge, the collective volume seen in the cryptocurrency has risen to two-month highs, with a $16 billion daily volume figure not being seen since May 16th, almost exactly two months ago.
Volume has historically been an indicator of the interest in which investors hold in the market, so this large increase in volume is an optimistic sign for sure.
Lack Of Single Catalyst?
It is unlikely that there was a single catalyst event that triggered this mini-run, as yesterday’s announcement of investment giant BlackRock was not correlated with Bitcoin’s positive price gain.
However, it is likely that strong technical indicators, coupled with a string of positive news in the industry may have signaled this price bump. The list of recently-announced positive news is as follows:
- BlackRock announces crypto team to investigate this nascent industry
- Coinbase is looking into adding five altcoins
- Coinbase gets go-ahead from U.S. regulators to list cryptos deemed securities by the SEC
- Bitpay Receives 10th BitLicense from New York State regulatory bodies
- A new Bitcoin ETF proposal that may see the SEC change its mind
- Steve Cohen to invest in crypto/blockchain hedge fund
It is currently unclear how the cryptocurrency market will react moving into tomorrow, but many are hopeful for consecutive days of bullish movement.