The bitcoin price made a massive surge from $4,200 to go briefly over $5,000 in an eye-watering $800 green candle, a plus 20 percent gain. The number one digital asset smashed through its 200-day moving average to trade at a new high for 2019.
The price of Bitcoin blasts off
The last 24 hours saw a flurry of buying and the asset price skyrocketed up to over $5,000 briefly, to settle back around $4,700 at the time of writing. The spectacular move happened without any news in the crypto space, and is likely to be the result of building bullish sentiment over the last few days combined with an unsustainable number of short positions.
Is this the end of the bitcoin bear trend?
Earlier this week, market analysts Alex said that a price movement of bitcoin above the $4,200 level will mark the end of the bear trend.
Noted trader @cryptodonalt made a prescient prediction on March the 27th noting:
“What happens if that resistance that has been tested so many times finally fails? Well, there is a whole lot of nothing above us. This chart looks like we’ll get a $1000 candle in either direction very soon. And up just seems more likely to me.”
Looking back at this mornings action as the bitcoin price breached the crucial $4,200 resistance level with volume this immediately led to break out of $4,300, $4,400, $4,500, and to $4,800, which many analysts predict could go to as high as $5,500 in the upcoming days before a pullback.
Bitcoin price back above the 200 MA
It seems as this move was driven by spot buying pressure entering the market and taking the price through key technical levels of resistance. The key levels breached include the $4,200 resistance that has held since the major sell-off in November last year and, more importantly, the 200-day moving average, which is around $4,700.
If price can hold and achieve a weekly close above the 200-day moving average, it could be a signal that the $3,100 may indeed have been the bottom and the crypto bear market may be over.
At the moment, it seems the institutional rhetoric is that they are still waiting to ‘buy the dip’ (with money still on the sidelines), but if the price can continue to find support above this historically important indicator, then we may see the next major level of $5,800 and then $6,000 break soon.