Bitcoin makes drastic rises to US$12,700

Posted: 9 July 2019 2:02 pm
News

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Bitcoin has made a break for it and left previous resistance levels in the dust.

Bitcoin just released a workout video. It's called Big Gains in Three Simple Steps.

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Source: LiveCoinWatch

Needless to say, this means something.

But what?

The drastic moves represent a clear breakout of Bitcoin's previous pricing doldrums, and in a single day, each of these totally organic-looking movements managed to dismantle a previous resistance level.

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BTC/USD chart by TradingView

The jolt comes after another major Tether printing run, which has historically been an extremely solid indication of upcoming price rises. This time is clearly no exception. The green line shows Tether's market cap, showing the impact of a cash influx on the Bitcoin markets.

As you can see, these rises have also been followed by some cashing out of Tether, which suggests that a lot of people are happy to pocket today's gains and sit back.

There's no clear suggestion of why this particular rise should happen now, except that Bitcoin prices were coiling like a spring yesterday and getting ready to do something big and impressive in either direction.

Upwards was the chosen route, it seems.

One suggestion is that the bump was tied to Bitcoin reaching a new hashrate all-time high a few days ago. This doesn't directly impact prices, but it can bolster them in a roundabout way and add to positive market sentiment. Another is that these rises accentuated themselves by writing out some short positions around the market, with the effect of adding more fuel to the fire.

As always, the real question is where Bitcoin plans to go next. Spikes this hard are frequently followed shortly afterwards by profit-taking, and there's undoubtedly going to be plenty of that going on.

At the same time, some analysts say Bitcoin's utter thrashing of existing resistance levels has helped clear the air for further upwards movement. The first jump was followed by profit-taking, as was the second, and now so is the third.

The only way to find out for sure what happens next is to wait and see.



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Disclosure: The author holds BNB and BTC at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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