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Why has the price of Bitcoin risen sharply? Fundamentals for Understanding the Rise of the King of Cryptocurrencies



The encryption market has gained more than $ 50 billion over the past few hours after the main cryptocurrency, Bitcoin (BTC) has taken off by more than 42% in its price as it surpasses $ 7,300 above the $ 10,500 line. per unit, as published by Cointelegraph a few moments ago.

Market capitalization of the market has broken long-term support with a strong reaction to projected wedge support and we are now at critical resistance that could trigger similar levels to July this year.

On the other hand, the Bitcoin domain has also surpassed the downward wedge that formed with a large green candle and now raises levels above support levels, with strong projection reaching long term values ​​of up to 78%, which may be the time to boom that many expect in cryptocurrency prices.

Right now, it seems that we are definitely heading towards the upward targets with some sideways movements.

But what led cryptocurrency to prove the five-digit levels again?. There are a number of technical and fundamentally media factors that led to this big race, the fourth largest in terms of cryptocurrency percentages in a single day, as a leading analyst on your social network.

Xi Jinping announces Blockchain technology momentum in China and passes laws on it

Undoubtedly, it is one of the key announcements that drove the last hours of the main cryptocurrency. The statement before the Political Bureau of the CPC Central Committee of that country's highest figure in favor of Blockchain technology and its support for what many call again & # 39;space race& # 39; It was the key for Bitcoin to outperform a single green candle when the news was known, the resistance that was $ 8,651.

President Xi Jinping called on the country to accelerate its adoption of Blockchain technologies as a core of innovation. Xi stressed that the implementation of Blockchain technology is essential to foster technological innovation and transform China's industries. In addition, on the afternoon of October 26, 2019, the Chinese Congress approved & # 39;cryptographic method& # 39; To be implemented from 1 January 2020. It is a comprehensive and basic password law in the Asian country that encourages the use of the fundamental cryptocurrency base in the country.

It is no secret that China is the main market for Bitcoin in both mining and marketing, so positive news about the technology that supports cryptocurrencies by the Chinese government has a positive effect on its prices and vice versa, as we have seen. in other opportunities.

2.- Bitcoin futures on the rise

Across the continent, ironically, with the other protagonist of the Wall Street trade war, the upcoming Bitcoin products regulated by the US Securities and Exchange Commission Bakkt registered 1,179 marketing contracts yesterday, October 25, 2019 .

The above contributes to the announcement of their futures options to be launched on December 9 this year, which eventually accentuated the growing interest of institutional investors in the purchase of Bakkt futures, which had already experienced two-day consecutive growth growth. before the resistance of major cryptocurrencies is broken.

In parallel, yesterday's date was key to the maturity of other Bitcoin futures, this time those traded by the CME Group, which expired at 4 pm London time, as on the last Friday of each month, increasing cryptocurrency marketing volumes. overall, since Bitcoin futures volume at CME is also an excellent indication of market sentiment,

A cryptographic analysis company recently revealed that the number of investors using Bitcoin has started to rise again after dropping to almost zero. Currently, long positions in CME have just surpassed 1,100.

3.- $ 440 million settled on BitMex in the last 24 hours

There is no doubt that BitMex derivatives trading continues to be the main driver of the Bitcoin market and whenever important data is generated in your XBTUSD trading days, the influence on asset price is essential to breaking resistance or trading. main supports. .

According to data from the cryptocurrency exchange, $ 440 million was settled on the last day with a 25x leverage that led to the loss of 16 million real funds during Bitcoin timing.

The metric reported by To lean, the cryptographic analysis company, is an important fact to understand Bitcoin's behavior in the market and the future patterns it may generate from now on.

With this data, open interest in BitMex futures contracts decreased 25% from $ 842 million to $ 659 million on Friday.

4.- More adoption, more use cases

One of the key points for gaining more traction on Bitcoin and cryptocurrency prices is generally higher demand, which in turn must be met with a greater number of uses. This will be possible when large traditional financial corporations open their doors to the encryption market and allow for the inclusion of different options for using them through traditional systems.

On Friday night, a large cryptocurrency financial solutions company announced the authorization of the European authorities to issue physical debit cards with the support of VISA, a positive story that joins yesterday's set of events to support the momentum. of cryptocurrencies in general.

5. Influencers Help Raise and Maintain Bitcoin Price

While there is no defined metric in this regard, the efforts of many cryptographic influencers to adopt cryptocurrencies should not be underestimated. And any comment or announcement they make about it is used by many whales to manipulate the market at will, generating an even bigger FOMO than the existing one.

Before and during Bitcoin's hiking day, personalities such as Binance's CZ, Twitter Jack Dorsey, and some influential analysts in the Blockchain sphere have generated even greater support for the cryptocurrency rally over the past 24 hours. So, by chance or not, some tweets that were generated on the high day of the king of cryptocurrency.

6.- Whales act mercilessly

We have repeatedly pointed to the key role these actors play in the encryption market. Just this week, we saw how Crypto whales advanced toward Bitfinex and Huobi, two major holders of Tether stablecoin, large amounts of USDT trading resources to manipulate the market at their convenience.

In addition to working on BTC through USDT, we have also seen your work on key altcoins such as Ethereum and the Ripple XRP token to capitalize on the resources needed to support Bitcoin domestic demand.

Take a look at the whales alerting website about unusual fund movements that have occurred over the past three days to understand the closing behavior of positions on Bitfinex and Coinbase, two key indicators of the BitMex price index, which finally sets the tone. Bitcoin market.

Where are we going

In our last post about Bitcoin, we are right in the direction that the main cryptocurrency would have for the past hours. Let's now try to understand your future behavior based on the respective graphs.

The board is generally green at the moment, with a few exceptions, and Bitcoin is leading the rally in the double-digit encryption market and a cumulative price increase of nearly 30 percent over the past 24 hours.

For the BitMex 1D chart, the XBT / USD pair shows a trend break towards medium term resistance levels above five digits after testing the $ 10,500 line with a strong bullish cross. We believe BTC could maintain this growth for a few more hours before returning to previous support levels of $ 8,200. This critical point will be critical for cryptocurrency to avoid as much as possible to avoid reaching lower levels for the rest of the year.

In short, there are two strong resistances that the BTC cannot hold above any of them. Continuing to consolidate above $ 9200 means that BTC is still down. This allows us to think that the bomb was created to leave short positions.

The long strand on graph 1D shows that they were mainly arrest warrants and FOMO buyers.

Currently, the RSI and Aroon indicators are very optimistic, with an overvaluation of assets close to the overbought zone that does not take long to reach the major resistance levels at $ 10,500 again.

The opinions and opinions expressed herein are solely those of the author and do not reflect

necessarily the opinions of Cointelegraph.com Every movement of investment and trade

involves a risk, you must conduct your own research when making a decision.

Market data is provided by Tradingview.

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