Bitcoin (BTC) Price Gets $200+ Boost to $7,208 Daily High as September Starts with a Bang
Bitcoin Sees Impressive Increase Within Just One Hour, Jumping to $7,200 – Could This Be the Start of a Short-Term Rally?
Though Saturday morning at Bitcoin started at around $7,030, it only took one of those hours to boost the coin to $7,200. The increase luckily brought the rest of the market along on the surge, which was a positive way to start the weekend. Most major tokens, like Bitcoin Cash and Litecoin, experienced a 5% to 15% increase within 30 minutes of this boost, supporting the upward momentum. Though any gain would be helpful, this particular value comes with some interesting possibilities.
In the past, tech analysts have said that reaching the $7,200 price would start the industry on a path to a noteworthy short-term rally. Only days ago, on August 30th, Bitcoin dropped by $300, bringing it from $7,100 to $6,800. Investors and traders alike believed that this downward pattern would continue, since there was no support for the mid-$6,000s range. Surprisingly, it only took 12 hours to come right back up, shooting to the $7,000 market fairly fast.
The market has not quite recovered from its summertime drop yet, since the entire market volume still was below $9 billion. Bitcoin and Ether made up a combined $4.8 billion of that amount ($3.5 billion and $1.3 billion, respectively). Based on the information available today, the volume market is presently above $13 billion, as of September 1st.
Last week, CCN continually reported on this topic, saying that Bitcoin’s performance in August is “crucial to acknowledge,” considering that this is the most stable it has been in over a year. This kind of stability is an essential prerequisite to establish trend reversal. If Bitcoin manages to keep up with the necessary stability, it is possible they will be able to fulfill the predictions of the community to experience the desired short-term rally.
Fundstrat’s Tom Lee has said,
“I do think in 2018, trading has shifted. I do think hedge funds are playing a role right now.”
Their researchers said that, right after institutional investing and hedge funds came into play, the crypto industry started to become more stable, and the price variance between different exchanges were minimized. The head of growth at SFOX, Danny Kim, was involved in an interview with Business Insider, where he said, “Before institutional firms were actively trading crypto or heavily involved (before 2018) bitcoin price differences between exchanges varied as high as 4.5%.”
So, now that this has happened, what should investors do and expect? Right now, major exchanges are experiencing higher volumes, especially with token-to-BTC trading pairs. Even tokens that have historically been weak against Bitcoin, like ICO, Ontology, and Tron, are increasing in volume. Since Bitcoin has broken out of the resistance level, a short-term rally for the entire market seems incredibly likely.