Bitcoin Bringing The Heat
In a bizarre turn of events, Bitcoin was sent skyrocketing yesterday, rising as much as 20% on some exchanges to almost $5,000 per unit and baffling analysts the world over. So what caused this phantom spike?
While volatility and sudden swings in the market are almost an everyday occurrence in the world of crypto, this was something slightly different. At the moment there’s no real fundamental reason that analysts can agree on for the wild surge. However, a spate of fake April Fool’s news is rumoured to potentially have had a hand in the affair….you’ve got to be kidding!
A wave of fake news circulated the crypto space yesterday, including a supposed SEC approval for a Bitcoin ETF, and news that investment legend, Warren Buffett, was diversifying his holdings into Bitcoin. Each piece of news was just as absurd as the next, but some believe that it could have been the source of the spike.
Others are pointing to purely technical factors as the source, claiming that a breakout through a key resistance level at $4,200 led the charge higher. Since mid-December, bitcoin’s price has been in a relatively muted range with a sideways, but upwards bias to form what is known as an ascending triangle formation. Prices had tested the $4,200 level four times since the December low before breaking out this morning, indicating the potential for just such a breakout.
At this point its anyone’s guess, but whether Bitcoin can hold onto its gains in the coming days will be an important sign of the health of the crypto market as a whole and whether the spike was informed by good information or April Fool’s nonsense. Stay tuned!