3 KEY FACTORS WHY BITCOIN PRICE EXPLODED TO .4K OVERNIGHT | BTC Halving 2020 Explained

➡️ TEEKA TIWARI – The Investment of the Decade: http://2020.cryptonewsalerts.net

Bitcoin price has soared from $7,700 to $9,500 in 24 hours, mainly driven by three key factors that triggered the short-term rally.

The BTC price increased from $7,700 to $9,500 overnight, increasing by 23%, according to Coinmarketcap, in less than 24 hours. 

The three main factors that catalyzed Bitcoin’s recent rally are record-high spot exchange volume, a breakout above historical resistance levels, and a noticeable rise in institutional demand.

KEY FACTOR #1: Spot exchanges drove Bitcoin (BTC) to $9,500, not the futures market In crypto, the term spot exchange refers to a platform that facilitates fiat to crypto trades.

On Binance and Coinbase, for instance, users can trade Bitcoin with USD or stablecoins like Tether (USDT) without leverage.

Volumes coming from spot exchanges are not inflated by leverage or borrowed capital.

Spot volumes typically demonstrate authentic retail demand and they often increase during an accumulation phase.

Unlike past rallies, the recent upsurge of Bitcoin was primarily led by spot volumes. Binance and Coinbase saw record high daily volumes.

KEY FACTOR #2: Historical BTC levels were broken with ease According to a cryptocurrency trader known as Benjamin Blunts, the Bitcoin price broke all major historical resistance levels when it first surpassed $8,000.

The 100-day and 200-day daily moving averages (DMA) and the 0.618 Fibonacci Retracement level were all broken simultaneously.

“And there it is. the test of the 0.618 fib, the 100 and the 200 daily moving averages all in one fell swoop,” Blunts said.

“Question is what happens from here.” 

When Bitcoin surpasses important resistance areas without any pullback, it indicates that a stronger upside movement awaits.

Consequently, when BTC first hit $8,000, it went up to as high as $9,500 swiftly.

KEY FACTOR #3: Institutional demand acted as a safety net In the first quarter of 2020, the key narrative around Bitcoin was the accumulation of BTC by institutional investors.

The quarterly report of Grayscale, which operates the Grayscale Bitcoin Trust, said that 88% of investments came from institutions.

In the same period, the assets under management (AUM) of the Grayscale Bitcoin Trust just hit $3 billion, according to its CEO Barry Silbert.

“88% of inflows this quarter came from institutional investors, the overwhelming majority of which were hedge funds,” said the investment firm.

The gradual increase of inflow in capital into institutional products of Grayscale since January 2020 indicates that institutions consistently invested in Bitcoin throughout the first quarter.

In other trending Bitcoin News today:

BTC Halving 2020 Explained: Are the Stars Aligning for the Next BTC Bull Run?

With just 12 more days away until the infamous Bitcoin halving, could it ever be a good thing to have your salary cut in half?

Ask a Bitcoin miner and your answer might well be a resounding ‘yes’.

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DISCLAIMER: This is NOT financial advice. The views and opinions expressed in this video are just opinions, nothing more. Trading is very risky, especially when trading with leverage. Seek financial advice from a professional and trade at your own risk because I am not responsible for any investment decisions that you choose to make.

Show Notes / Resources:

Not very surprising that all altcoins completely collapsed today against #BitcoinWhen will people realise that altcoins are just cheap copies of Bitcoin?

Bitcoin is the only truly decentralised blockchain and has a higher hash rate than all the top altcoins combined!

— The Moon (@TheMoonCarl) April 30, 2020

Bitcoin’s Halving: Are the Stars Aligning for the Next BTC Bull Run?

https://cointelegraph.com/news/3-key-factors-why-bitcoin-price-exploded-to-94k-overnight