Not long after Bitcoin sunk below the $10k key resistance level was it back up soaring to five figures. Yesterday afternoon we saw bitcoin make an astounding bull run which took its price from $9,400 to $10,600 in just minutes.
Specifically, the market moved by $800 in just four minutes, at least that’s according to the analyst Alex Kruger who took to Twitter to say this.
$BTC just moved +9% in 4 minutes.— Alex Krüger (@krugermacro) July 18, 2019
So if you were ever unsure about cryptocurrency being volatile, here is your evidence.
This rally was totally out of the blue. Kruger wrote on Twitter, “No technical analysis could have predicted that squeeze until it was already half way under way. Bears were fully in control until slightly past 10:30 EST.”
This ten percent spike is the latest in a series of moves that has confirmed that the volatility is back in the cryptocurrency markets. As industry analytics provider ‘Skew’, Bitcoin realised volatility levels are “back to levels not seen since the end of the great 2017 bull market.”
This strong surge to the upside comes after the CryptoHamster drew attention to a number of reasons why Bitcoin dumping to $9,100 might be the end of the drop.
As reported by Ethereum World News:
“Firstly, the one-day Relative Strength Index (RSI) and the Stochastic iteration of this indicator are at their lowest levels since at least February, entering the “oversold” range. The one-day Moving Average Convergence Divergence (MACD) has tapped the zero level, despite the fact that Bitcoin is in a raging bull market according to most analysis.
Also, the Elder’s Forse Index, an indicator meant to exhibit the strength of moves, is at its lowest since November 2018; and historical volatility is almost at 100%, implying a move to the upside to return volatility to levels deemed normal.”
Despite all this, there are some people that suggest Bitcoin needs to correct even more to return to better levels of stability. $8k seems to be the local bottom that most are keeping their eye on, but this recent surge could put a damper on a move to such a level.