From the beginning of April the bitcoin price initiated a massive 19 percent rally from $4,200 to $5,000. On April 3 the cryptocurrency was seen trading $5,300, the all-time high since November 2018 across several major crypto exchanges.
Experts opinionated, the sudden bull rally of bitcoin which occurred in minutes might have been triggered due to two major factors. According to reports there were approximately $80 million worth sell orders and liquidated $500 million worth of short contracts as the sell orders were absorbed by buyers.
The lack of resistance above $4,200 and massive sell order absorption are believed to be the main reason behind the sudden bullish trend of bitcoin. Crypto analyst believes that 19 percent sudden increase in price was triggered by bulk orders accounting to about 20,000 bitcoin, worth nearly $100 million.
Experts suggest the sell order would have reached $200 million, if the absorption of sell orders at the resistance level, $4,200 which the bitcoin failed to test during the first quarter of 2019. Oliver von Landsberg-Sadie, CEO of cryptocurrency firm BCB Group states that if bitcoin recent rally was triggered by 7,000 bitcoin then a promising rally will begin as block reward halving approaches.
Technical analysts are closely analyzing the crypto market of bitcoin as the cryptocurrency has tended to rise in price a year before its halving begins. Investors’ foresee the price of cryptocurrency to rise as its circulating stock becomes more limited over time.
Fundstrat Global Advisors head of research Thomas Lee said that large bitcoin holders or whales started to accumulate the asset once again recently.
According to Lee, the first generation cryptocurrency had a rough 2018 and 2019 but its hiking steadily. Many old whales are buying bitcoin and reports suggest that it’s been a slow accumulation till now.
Large holders of bitcoin who sold out large portions of their holdings at $20,000 could possibly accumulating more bitcoins, expecting positive price movement right after the block reward halving.