Bitcoin makes drastic rises to US$12,700
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.
Needless to say, this means something.
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.
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.
Disclosure: The author holds BNB and BTC at the time of writing.
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