Bitcoin price rose by $400 in two hours, the highest intraday rise since February 6. The cryptocurrency could rise further although the speed has slowed.
Bitcoin price has been soaring in the last 24 hours and is likely to continue with this trend. It moved out of its $6k levels on Thursday by trading over $7,000 before the close of the day yesterday. The Thursday move up to $7,705 was the biggest intraday move since Feb. 6. The cryptocurrency shot up to $400 in an hour.
It is now trading at over $8,000.
The movement signals a bullish Bitcoin which is likely to continue soaring. Some say the Thursday rise is due to the fact that some investors shorted Bitcoin previously expecting a fall got squeezed and forced to buy it back. However, experts say there was some positive feeling among traders which is opening room for the rise in price.
The rise could be a relief for holders given the price was between $6,600 last Friday and returning to the same level on late Monday after a slight improvement on Sunday and Monday.
Many people have been less optimistic that the price will improve in the near future. Experts associated poor price in recent developments including regulatory pushbacks. They said a price jump would be possible if there is a recovery in the amount of volume traded.
They now say the price movement shows an impending rally based on daily charts. Based on the analysis, a breakeven appears to be imminent as the price range continues to narrow on a daily basis.
And although the volume fell from $7,189 to $6,611 on April 9 (bearish outside-day), bears were failing to capitalize on the drop. However, the daily chart reveals a conflicting pattern of bearish continuation and a bullish reversal pattern.
Furthermore, the 50-week MA appears to have been short-lived based on an analysis of the previous two weekly candles (weekly charts). Bitcoin has been trading above the 50-week MA (moving average) in the last two weeks. Supporting the possibility of price soar is the fact that Bitcoin puts a good show every April of the year.
Based on this, it is possible the price will rise above $7,100 and move closer to the resistance lined up at $7,510 (April 3 high) in the next 24 hours.