After Bitcoin's rise, explanations come – here's the real reason for the move
After spending several hours under the $ 7 support. 000 hovered, the Bitcoin bulls were able to generate significant momentum yesterday. This has allowed BTC to position within the $ 7. 000 region to recapture – and this upward momentum apparently continues to grow.
Bitcoin's surge closely coincided with a U.S. airstrike report against an Iranian general that caused both crude oil and gold to skyrocket. Many investors believe that Bitcoin's upswing is due to this news. However, there seems to be another, more technical factor behind this movement.
There are many interpretations of what caused the ongoing Bitcoin rally.
At the time of writing, Bitcoin is traded at a price of $ 7. 400, which is a remarkable increase from the daily lows of $ 6. 800 marked at the end of yesterday's sale.
Important here: Bitcoin's steep rise from these lows occurred shortly after the successful air attack on one of the highest Iranian military was announced. However, it is still unclear whether the two events are really connected.
For example, the popular cryptocurrency analyst Scott Melker writes on Twitter: He strongly doubts that the recent Bitcoin rally is linked to the growing tensions between the United States and Iran. According to him, not every single 400 dollar movement needs a special explanation.
“I seriously doubt that the Iranians will go home to buy $ BTC because of this incident. The thought is a bit absurd, to be honest. You don't need a story for every movement of 400 dollars. ”
Here is a possible reason behind Bitcoin's current rally
If Bitcoin performed consistently well in times of increased tensions between countries, this would be a confirmation that the cryptocurrency has become a safe haven.
Nevertheless, last night's rally appears to have been caused by a strongly orchestrated, short pressure wave triggered by the negative funding.
“Orchestrated Short Squeeze. 25 x shorts that come from the mid-range zone and the S / R zone. Price decrease with exceeding the middle range and 7250 s / r. The first sight of negative funding triggered the hunters. The game continues, but the real buyers are not present, ”wrote the popular crypto analyst CryptoISO in a recent tweet.
If this bitcoin move is really just a short push, it is likely to be temporary and followed by further downward moves. But there is still a possibility that this move will cause some sellers to become buyers – which could keep the momentum going.
Proof of text: newsbtc