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Bitcoin Corrects Following Overnight Surge to $9,400

April 30, 2020 at 11:00 by Matt Jackson

Bitcoin left the rest of the cryptocurrency market in its wake overnight, as it surged through $9,000 to peak at $9,450. It had previously fallen just short of the $9,000 resistance level. It is currently correcting gains, trading at $8,913 at the time of writing. The rest of the cryptocurrency market is still showing 24-hour gains against the dollar, but the likes of Ethereum, Ripple, and all other major cryptocurrencies plotted a similar course to the market leader with strong overnight gains followed by price correction.

The world’s largest cryptocurrency started the year at $7,200 and peaked at a high of over $10,000 in February, but the risk of the Coronavirus brought any further gains to a screeching halt in March. Prices hit a low of $4,000 before starting to make the climb back up and posting weekly gains ever since. At the current price, Bitcoin is up nearly 25% from the start of the year, and at the daily high of $9,450, it was up over 30%.

The overnight increases have been attributed to spot exchanges, rather than futures trading. Binance CEO Changpeng Zhao Tweeted that the exchange had seen $12 billion dollars in 24-hour trading volume.

In fact, demand on the exchange was so high that Binance and Coinbase both suffered temporary outage during the rise. Coinbase suffers these outages with alarming regularity, with users facing downtime in June 2019, November 2019, and during the Coronavirus crash in March 2020.

Prices were rising quickly enough that many traders were waiting for the cryptocurrency to break psychological resistance at $10,000 and potentially reach yearly highs. For now, however, Bitcoin and the rest of the market are correcting. Total market capitalization tells a similar story. Before yesterday’s rise, the total market cap stood at $225 billion, it peaked at $260 billion and has fallen back to $245 billion.

The rest of the cryptocurrency market saw similar spikes but all coins are struggling to hold onto those gains. Ethereum, the second-largest cryptocurrency by market capitalization, peaked at $225 but has since fallen back to just above $210. Ripple peaked at an impressive $0.235 and has corrected to $0.218.

When Bitcoin passed the $8,000 mark yesterday, it broke through a series of resistance levels including multiple moving averages and the 0.618 Fibonacci retracement level. As such, there is little to stand in the way of the cryptocurrency from marching towards $10,000, although it is likely to come up against some selling pressure at $9,500. If Bitcoin can maintain the current upward trend, it will be challenging the YTD high posted in February.

The market was greatly affected by the Coronavirus spread last month. In fact, all markets took a massive hit. As investors came to terms with economic changes and fiscal policies designed to prevent or stave off the likely recession, markets have started to recover. However, Bitcoin’s most recent gains came at a time when gold and stock markets remained roughly stable compared to the day before. There is still some debate as to whether these gains are driven by macroeconomic factors like stimulus and recovery packages, and quantitative easing, or whether the upcoming halving event is pushing prices up.

At 11:45 GMT, Bitcoin (BTC) prices had risen by 10.14% compared to 24 hours earlier, and the world’s largest cryptocurrency is now changing hands at $8,865.96. Ethereum (ETH) is up 2.92% at $212.82 and Ripple (XRP) has added 1.31% to its price to trade at $0.219. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are up 2.94% and 5.8%, trading at $254.82 and $210.31 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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