The 23% rally pushed Bitcoin price to the highest level in four months not from an April Fool's Day joke.
Finding the clues behind any unusual price action is always a wise action of analysts and financial experts. Bitcoin only takes an hour to break a myriad of strong resistance levels and targets $ 5,023 when its trading session is high. Many analysts on Twitter show their lack of awareness about price fluctuations. Some people seek answers in technical models, while others only reject Bitcoin's move to raise prices as April Fools' jokes.
Waking up saw Bitcoin hit the $ 5000 mark, then realized that China clearly fell into an April Fool's joke about the SEC's approval of the BTC ETF. Return to bed immediately ...)
Indeed, it's hard to recognize the irony in e-lover's tweet today. But a reputable media center has promoted the continuous rise of Bitcoin as an April Fool's rally.
Bloomberg cited an article published on April 1 that joked about the approval of the US Securities and Exchange Commission (SEC) for two Bitcoin ETF funds. If such a news story is true, it will lead to a similar surge in what the Bitcoin market is experiencing today. But Bitcoin prices have exploded a day after fake news. Bloomberg was easier to connect events with. Their title contains the following: April Fool's Day joke: Trader pursues another inexplicable Bitcoin rally.
But that's not the April Fool's Day protest
Many experts say this news is not responsible for Bitcoin's recovery. Hunter Horsley, Bitwise CEO is mentioned in the April Fool's Day report, saying there is no truth about the ETF rumors.
“It's absurd to believe that this market move is the result of confusion about Bitcoin ETF records,” said Horsley, CEO of Bitwise, in the process of registering the first Bitcoin ETF fund. "Although ETFs and April Fools are the main topic, there are many reasons why this is an unfounded explanation."
The most likely explanation, he says, is a Reuters report on a private buyer who buys Bitcoin worth over $ 100 million in a short time. With Bitcoin's small daily trading volume, "that buy order will be enough to have an impact," he said.
“Electronic money is famous for a long history of fluctuations like this. It's always hard to determine the real motivation and often the source of motivation is really unclear, ”Horsely said.
Another rumor about price increases is CEO Berkshire Hathaway Warren Buffett - one of Bitcoin's most famous critics - has diversified asset classes. As BKCM founder and CEO Brian Kelly said, "it is impossible" that is the reason.
A more realistic possibility is that Bitcoin reaches an important technical level, he said. Kelly pointed out an important price of $ 4,200 triggering stop loss trading. In Bitcoin and other assets, traders usually set a certain level when they automatically cover the short order. It may also be a sign that the fundamentals are improving and Bitcoin is about to get out of the seller's control, according to Kelly.
"All panicked and sold people left the game," Kelly told CNBC on Tuesday.
Can a joke affect a widely distributed spot market to pump its basic assets by another $ 16 billion? If it is in a movie then it is possible.
The recovery of Bitcoin is called April Fool's joke Source: CMC
Alex Krüger quickly pointed out the reason behind Bitcoin's protests. The cryptocurrency economist shared one of his previous tweets to explain what might create the power for the ongoing price increase action.
In his February 20th tweet, Krüger shared three successive stages in which Bitcoin could reverse its longest downtrend. The first stage is investment, in which investors surrender to a discounted asset and make the market lose. The second stage involves a strong reversal trend. And the third phase shows a slow accumulation following an uptrend. In those tweets, Krüger also mentioned a scenario in which Bitcoin could explode north without any specific explanation.
“A strong step to fill the gap above is when, not if. Such price increases can happen entirely on techniques, which means they do not need a basic catalyst as well as a change in market structure.
Nobody pumped Bitcoin
Krüger's tweet did not explain exactly the Bitcoin rally, but it certainly envisioned a scenario going on at the moment. The question of what prompted the unexpected rally of Bitcoin has yet to have a real answer. The market of electronic money has many cases in which it has increased to $ 1,400 / day. And those pumps didn't happen during or after April Fool's Day.
The current BTC price action is most likely part of the recovery that happened. Since mid-December, Bitcoin seems to have established a support area of over $ 3,120. There are many powerful fundamental developments taking place this year within the electronic money market. The surge of Bitcoin is inevitable. Admit that it happened and see the price move in either direction.
Bitcoin prices today. Source: Coinmarketcap.