On
October 23 the crypto market suffered a sharp decline; However, during the last
24 hours, the vast majority of cryptocurrencies are going through a very good recovery.
At the moment Bitcoin rise.
The rise
of Bitcoin in the last 24 hours has made it recover more than 11% of its value,
and today's total momentum led it to touch highs that meant more than 15%
recovery.
The
recent bearish movement that caused extreme fear in the feeling of Bitcoin,
reached a minimum of $ 7293.55 according to Bitstamp.
Today,
the volatile bullish momentum touched the psychological barrier of $ 8,500,
which meant a recovery of more than $ 1200 in relation to the recent low
reached.
Will we
still see a more pronounced rise in Bitcoin?
It's
really amazing how volatile the cryptocurrency market is today. At this time it
is important to be very cautious.
Everything
that goes up has to go down, and that can be seen again and again in any type
of financial asset, the question is when it will happen, because not because it
goes up a lot it has to come down immediately.
If you
do not have much knowledge and experience in investments, it is recommended
that you stay out of the way.
The
recent rise of Bitcoin was expected; the breakdown of the strong support level
located at approximately $ 7,750 should cause a speedy recovery. However, it
was not very sensible to expect a major reversal of the previous bearish
momentum.
At this
time the price was again in a strong consolidation that brings Bitcoin since
the end of September, so you might think that the last bearish momentum was
just a false break.
As I write this article, the price continues to rise,
just exceeding $ 8,700, a rise that is leading the price to be in a strong
liquidity zone that can cause a close correction.
In a recent article where we commented on the fall of
Bitcoin we show a strong bullish divergence in price; This was one of the signs
that supports the bullish momentum we are seeing today; demonstrating the lack
of strength to effectively break the consolidation support located at $ 7,850.
What supported the upward momentum of Bitcoin?
Two fundamentals caused the volatile rise of Bitcoin.
First, the President of China, Xi Jinping, made statements where he encouraged
the development and adoption of the Blockchain in his country.
The second fundamental factor was the exponential
increase in the Bitcoin futures contracts traded by Bakkt during yesterday.
Meanwhile, from the technical analysis, several signals that supported the
bullish momentum could also be observed; below the daily chart of BTCUSD.
Conclusion
At the moment it is very likely that we will see a
correction in the next few hours. Subsequently, we may see Bitcoin again
respecting the consolidation that it has been bringing for about a month.
When we see the end of the strength of the current upward
movement we will be doing an update and short-term projection.
I invite you to be very aware of all our publications,
each of them will keep you aware of everything that happens in this ecosystem.
Finally, I remind you that all our analyzes are
informative, in no case should they be followed as investment advice.
SOURCE: Criptotendencia
