Bitcoin experienced a near $1,000 surge overnight to kick the bears into touch and bring about a sense of euphoria that hasn’t been seen in the community since the heady days of 2017. The move coincided with the biggest 1-hour buying volume Binance has ever experienced with a Bitcoin pairing, and comes off the back of a change in sentiment that we have been reporting for weeks. The price rocketed from $4,174 to $5,140 on BitMEX, liquidating $500 million in the process, before settling back to the $4,700 area. The move propels Bitcoin past the $4,200 resistance level and sets it up for a further climb towards the next resistance level of $6,000.
Confusion and Joy in the Community
The crypto community reacted to the move with a mixture of ‘I told you so’ and sheer disbelief, with many frantically searching through news feeds for a catalyst that could have started the move. Some credited the move to the news that a blockchain ETF is now trading on the London Stock Exchange, others to the reports that a Bitcoin ETF had been granted by the SEC, which turned out to be an April Fool’s Day prank. Even crypto royalty appeared baffled. However, with no obvious catalyst, market mechanics seem to have been the driving force, reinforced by comments leading up to the jump:
??????? ?? ?? ? ????? ?? ?????????
FROM THIS POINT FORWARD, IT IS ????????? TO SHORT #BITCOIN
?OFFENDERS WILL BE LIQUIDATED ?
— The Crypto Dog? (@TheCryptoDog) March 29, 2019
This ascending channel worked like magic. If the channel holds, MA120 will be turning upwards, first time since Dec 2017 pic.twitter.com/jNiSDvt3Pt
— ๑ PANDA ๑ (@PandaofBinance) March 27, 2019
In terms of where BTC goes now, the daily close will be key. A hold of around where we are now, the $4,600-$4,700 range, would be ideal, but if it continues to drop as the day progresses then a hold above $4,200 is key. If Bitcoin ends the day below $4,200 then this would mean the bears are still in control and the breakout would have been for nothing.
Impact on Alts
Altcoins naturally suffered in their Bitcoin pairings, but once the BTC buying had tapered off, alts rebounded, with BQX and ENG in particular performing well. With $16 billion being added to the market cap following Bitcoin’s move, the money will have to go somewhere, and it will be interesting to see if the old rules apply, where the money moves into larger cap alts first before tricking down the food chain. All in all, the next 24-48 hours will be key in determining the short term future of the market.