Bitcoin has recently made some very impressive gains over the past few days with the price now touching the $5,000 mark whilst the market cap had increased by $20 billion in around an hour.
Over the past month, the valuation of the crypto market surged up by more than $40 billion due to the strong performance of cryptocurrency assets and alternative cryptocurrencies.
How long will it last?
So how long will Bitcoin continue to make gains? The almost overnight rally of cryptocurrencies is said to been mainly triggered by the liquidation of short contracts worth over $500 million.
— CZ Binance (@cz_binance) 2 April 2019
The cryptocurrency market has needed something to spark it in order to pass the $4,200 key resistance level which in itself required buyers to absorb an $80 million sell wall. The liquidation of short contract served as a proper catalyst to the near-term movement of Bitcoin.
This large movement was necessary because of Bitcoin’s extended period of stability from the start of the year, up to march.
Although the price going up is great, it probably won’t be a sure thing as the last time the price of Bitcoin was stagnant for three months, a fifty percent price drop quickly followed it.
The rally of the price in Bitcoin comes after weeks of strong upside movement by alternative cryptocurrencies was expected by some though. Some technical analysts were anticipating that investors cash out their returns from high-risk trades bak into Bitcoin.
At first, Bitcoin was the only asset that was seeing gains as capital was flooding into the leading cryptocurrency from altcoins. Later in the day, both Bitcoin and alternative cryptos began to surge simultaneously which suggests that a new inflow of capital is triggering the recovery of the crypto market.