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Bitcoin Posts Another $1,500 Rise Before Some Profit Taking

October 26, 2019 at 2:32 by Matt Jackson

Having already posted $1,000 gains earlier on Friday, Bitcoin prices rose a further $1,500 in 2 hours in the early hours of Saturday morning, reaching a high of $10,370. Some profit-taking at the $10,000 mark has seen the price slip down to the $9,800 mark but the cryptocurrency has still seen gains of over 30% in the past 24 hours.

Other major cryptocurrencies have tried to keep pace against the dollar value, with the likes of Ethereum posting 20% gains and Bitcoin Cash managing nearly 30% itself, but it is Bitcoin that stands out. The gains do mean that other currencies have seen significant losses against Bitcoin value, but many investors will welcome the volatile price movements back to the market, having experienced flat trading over recent weeks.

Bitcoin’s earlier gains had defied the Death Cross that was reported by some outlets. A Death Cross is a bearish moving average crossover where the 50-day moving average falls below the longer, 200-day moving average.

Some analysts had attributed earlier gains to the Chinese President, Xi Jinping, stating that his countrymen should make the most of the opportunity that blockchain technology has presented them. He stopped short of supporting cryptocurrency, however, and others pointed to the gains as being a short squeeze.

A short squeeze is experienced when a large number of short-sellers try to cover their positions after a moderate gain and a number of short positions are liquidated. In traditional trading, investors expect the price to return to normal following a short squeeze, which would suggest an imminent return to the $8,400 mark, but investors have learned that Bitcoin is far from traditional.

Investor and analyst eyes will be on Bitcoin in the coming hours and days to see whether it can retake and hold the psychological resistance level of $10,000, or whether it will slip back below $9,000 again, but commentators will welcome the return of wild swings.

Bitcoin (BTC) has seen its prices rise 31.15% to trade at $9,830.72 while Ethereum (ETH)  prices have risen 18.51% to trade at $192.54. Ripple (XRP) has increased 10.36% to $0.308, and many investors will watching to see if the maligned cryptocurrency can hold above the $0.30 mark. Bitcoin Cash (BCH) and Litecoin (LTC) have also seen substantial gains, increasing 25.75% and 21.24% to trade at $271.00 and $60.60 respectively.

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

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