The value of Bitcoin surged breaking through its five-day benchmark of $28000 on Tuesday night. The surge came amidst fears of future regulation and overall chaos in the American Crypto market. The First Republic Bank in America reported a loss of $100 billion in deposits in the first quarter. The stability of the banking sector has been called into question after a series of implosions rocked the Crypto markets.
Even the SEC has stepped in to try and bring stability to this decentralized, volatile market. Amidst all this bad news Crypto’s flagship currency surprised analysts with its bullish surge.
Jake Boyle, director at the Caleb & Brown brokerage firm, analyzed the sudden uptick in the price of Bitcoin in particular and the Crypto market in general. In his analysis, he states that investors have been expecting a liquidity injection for quite some time. They have also realized that the Feds have reached the limit of their regulatory capacity. These two speculations have spurred the Crypto markets.
There were other signs that Coinglass, a crypto analysis firm, reported. $11.3 million worth of short positions on Bitcoin were liquidated on Tuesday evening. This was a major sign that market sentiment was reversing. Price jumps are accelerated by short squeezes like this.
The cryptocurrency Ethereum was traded at $1870, it showed a gain of 1.8% since Monday.
Glenn Williams, the CoinDesk technical analyst said that there were other signs that indicated a Bitcoin surge. The cryptocurrency had declined towards the lower end of its ‘Bollinger Band’.
Bollinger Bands is a graphical plot of the twenty-day average momentum of an asset and it is used to calculate two standard deviations from the average price.
Williams noted that generally asset price remains with these two standard deviations of the Bollinger Bands. He, along with other analysts, believes that the price of Bitcoin will settle once again on its 20-day average value in the future.
