Bitcoin Suddenly Jumps Hitting $5,000 For the First Time This Year – Cryptomania Is Back Again??

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The bulls are back in town after Bitcoin surges by over 22% to spike above the $5,000 level in just 30 minutes! Nexter.org tries to figure out what happened and will Bitcoin hold this price?

Rising from the dead

Bitcoin has been in a lull in recent months. The largest ’s price kept declining throughout 2018, finally finding a bottom at roughly $3,200 last December. Since then, it’s been a slow and shaky climb upwards.

On Tuesday, however, the price of Bitcoin surged more than 15% in less than an hour. The price briefly surpassed $5,000 on some exchanges but is now slowly declining and currently sits at $4680, according to CoinMarketCap.

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Source: COINMARKETCAP

Bitcoin’s price is known to be changeable, but this jump is unusual as Bitcoin hasn’t come close to $5,000 since November 2018. Furthermore, the sudden rise brings back memories of 2017, when such enormous price increases were nothing out of the ordinary.

Other virtual currencies were also higher, with ether and XRP both rising around 6 percent.

The reasons behind the price increase

As is often the case with Bitcoin, it’s really hard to determine the cause of the price swing.

The entire space has steadily been making progress throughout 2018 and 2019 despite the negative price movement, but there haven’t been any major new developments around Bitcoin that would prompt such a quick price jump.

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Notably, even Changpeng Zhao, the CEO of one of the largest exchanges, Binance, appeared stumped by the price surge as well.

Experts attributed the price hike to a breakout from a closely-watched resistance level of $4,200.

Market participants say big buy or sell orders in Bitcoin can often lead to outsized moves, in part because volume is spread across dozens of venues. Trend-following individual investors can also exacerbate volatility.

“Bitcoin’s break above $4,200 this morning was critical, as the market had been watching that level for a while,” Mati Greenspan, senior market analyst at trading platform eToro, told CNBC. “No doubt some entry orders and stop losses were grouped right above.” Meaning that certain algorithmic trades had kicked in after it reached this higher level.


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Bitcoin Suddenly Jumps Hitting $5,000 For the First Time This Year - Cryptomania Is Back Again??
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Bitcoin Suddenly Jumps Hitting $5,000 For the First Time This Year - Cryptomania Is Back Again??
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The bulls are back in town after Bitcoin surges by over 22% to spike above the $5,000 level in just 30 minutes! Nexter.org tries to figure out what happened and will Bitcoin hold this price?
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