From price action, Bitcoin traders couldn’t wish for better. After two weeks of suffering and “pain,” the last hour’s welcomed blissful upswing may well be the beginning of the new rally through to Q1 and 2 2020. BTC prices are bottoming up much to the excitement of traders and HODLers, adding $500 in one short hour.
Bitcoin Supportive Fundamentals
That BTC prices were suppressed is an understatement. A single glance at price action over the last couple of months indicates that sellers had a tight grip, leading prices and consequently destroying portfolios as the market bled.
For perspective, BTC price, before today’s unexpected push, was down by double digits and retesting a 6-months low, as previously reported by CoinGape. The downtrend persisted despite an array of fundamental and technical activities, chief amongst them being the upcoming halving scheduled for early May 2020 that is not only expected to cause a supply shock but its scarcity lead to a higher re-pricing.
This was further supplemented by reports that Bitcoin Futures traders were expecting prices to recover as relayed by high premiums of two of BitMEX’s popular derivative products. It was further revealed that premiums Bitcoin Futures product with expiry at December 2019 and March 2020 were up by approximately 30%, hinting of investor confidence amid a suppressed market.
If this–like Litecoin’s pre-halving price action gives insight, odds are BTC will likely edge higher ahead of an eventful Q2 2020. That’s not forgetting political events and risk-averseness expected ahead of the hotly contested US election of November 2020.
December Marks Climactic Price Action-2018 and 2019?
Given, today could mark yet another milestone, highlighting the importance of December. Around this time in late 2018, prices began consolidating before erupting, ending the crypto winter.
The crypto winter literally froze projects and as prices fell to new levels, reversing the stellar gains made in late 2017 and early 2018, BTC steadied in December, setting the foundation for recovery through to Q2 2019. Within that span, BTC prices rose from lows of $3,200, peaking at $13,800 in late June 2019.
Today’s bullish candlestick, given the significance of the $7,000 mark and most importantly the reversal of Nov 22-23 losses, could trigger bulls with the bar acting as an anchor from where prices would lift off towards $13,800 sparking participation and renewing demand going forward.
At this pace, it appears that Bitcoin will quickly snap back to June 2019 bull trend to the relieve of traders and HODLers.
The post What Pumped Bitcoin (BTC)? Prices up $500 in 1 hour appeared first on Coingape.