The price of Bitcoin [BTC] is up 40% against the U.S. dollars year to date and other prominent cryptocurrencies such as Ethereum and Litecoin have also showed major gains in the past four months.
According to reports, Litecoin [LTC] recorded 208% increase in value since January, surpassing most of the major cryptocurrencies except Binance Coin and Enjin Coin.
The stats from CoinMarketFeed suggest that the bitcoin price increased by around 22% against the U.S. dollar during the period from April 1 to April 3 changing from $4,100 to $5,041. Bitcoin [BTC] along with Ethereum [ETH] and other major cryptocurrencies in the market displayed new momentum with BTC recently breaching $5,200.
According to the reports, bullish rally of Bitcoin in the first week of April is believed to have been triggered by four major factors, Absorption of an $80 million sell wall at a key resistance in $4,200, lack of resistance above $4,200, liquidation of short contracts worth $500 million, purchase by one buyer of $100 million worth of Bitcoin.
The major roadblock for the near term recovery of bitcoin since January was tha $4,200 resistance level. All the attempts to break out of the resistance level led to dipping below $4,000. Bitcoin began to move up rapidly toward $5,000 once it crossed the resistance level on April 2.
Short contracts liquidation and the massive volume from the U.S.-based futures markets were inevitable increasing the momentum of Bitcoin in April as near-term price catalysts.
Since the early November 2018, bitcoin has not been in the $5,000. To gain new momentum it would require proper fundamental and technical factors to push through September and October levels in the $6,000 to $7,000 level.
Expert reports suggest that he block reward halving of the Bitcoin network is expected to happen in May 2020 which will have an impact on the price of the cryptocurrency in the near term.
Several analysts suggested, the price of Bitcoin has tended to rise in value about a year before its halving. About a year before the halving, the cost of Bitcoin starts to hike, the historical data suggests.
Bitcoin is approaching its fixed supply of 21 million and the limiting the halving would put on the circulating supply of the cryptocurrency is very likely to cause impact on the price of the asset, particularly if the demand remains at the current level or even rises in the months to come.
Bitcoin, etherum and other major cryptocurrency market to get engaged in a new rally right after the 20% gain in the past week, strong factors such as short squeeze or the investment of nearly $100 million by a single buyer are required.