Bitcoin soars 17%.

Bitcoin has skyrocketed 17%. Payback coming?

The reckoning is coming?

  • Bitcoin reached $ 9400 and then rolled back.

  • In the entire history of BTC, there were only 13 cases of growth by more than $ 1000 per day.

  • The recent takeoff signals an impending decline in quotations.

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At the end of yesterday’s trading, bitcoin rose sharply, and today it has moved its highs to the $ 9,400 area, from where it later rebounded and ended up under the $ 9,000 mark..

At the moment, 14 cases have been recorded when bitokin rose in price by more than $ 1000 in just 24 hours. However, as history shows, such buying spikes do not necessarily signal bullish prospects for cryptocurrency..

Volatility in anticipation of halving

As everyone knows, bitcoin is volatile. Over its 11-year history, the leading digital currency has seen many sharp fluctuations, which differ in a much wider range from the movements on Wall Street..

The last two days are a good example of this behavior. After a breakthrough to the $ 9,400 area, bitcoin fell below the $ 9,000 mark, marking around $ 8,400, after which it rebounded slightly.

Before the third BTC halving, at first glance, such movements may seem positive, because quotes have updated local highs.

Bitcoin has skyrocketed 17%. Payback coming?

However, as history shows, sharp ups and downs of the token precede no less aggressive falls..

The higher you fly …

As Timothy Peterson notes, CFA at Cane Island Alternative Advisors in the history of bitcoin there were only 13 cases when quotes rose by more than $ 1000 per day. As a rule, after that in the following months and even weeks, prices fell..

The chart posted in Peterson’s tweet shows average weekly, monthly and three-month profit margins after similar intraday highs – after 7-30- and 90-day rallies, losses of 5%, 21%, and 38%, respectively.

The maximum monthly increase in the BTC rate was recorded in December 2017, when quotations increased by more than $ 1000 for several days. The all-time high around $ 20,000 marked the start of an annual bearish trend that saw some of the most aggressive intraday losses.

There were also days at the beginning of 2018 when bitcoin rose by more than $ 100..

Bitcoin has skyrocketed 17%. Payback coming?

However, these short-term rallies took place as part of a bearish trend with prices bottoming out at $ 3,200..

Another example that signals further losses of bitcoin is last October, when the Chinese prime minister announced that his country was interested in mastering blockchain technology..

After taking off, over the course of several days and even weeks, Bitcoin lost most of its points and was noted at lows around $ 6,600, exactly two years after reaching record highs..

Despite the fact that such rallies often precede pullbacks, some users disagree with Peterson’s opinion, citing the fact that the rise of $ 1000 in the $ 6000- $ 7000 range is more significant than the rise from $ 16000 to $ 17000..

Many market observers argue that percentage growth is the only real way to gauge the most volatile price movements. Taking into account the above arguments, the recent rise in prices really looks doubtful, especially since BTC has already rolled back from the highs reached.


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