Bitcoin is finally overcoming the resistance, breaking out over $8500. This is an impressive profit of over 5%. However, this is not much compared to the jump made by his hard fork, the Bitcoin SV, which increased by more than 85%.
Bitcoin’s price increase of 5%
On Tuesday, during the session, the price of Bitcoin (BTC) started to rise suddenly until it exceeded $8300. It then tested at $8500, the highest level since November 2019. This way, a new maximum was set for this year. At this point, Bitcoin’s rate is 8513 USD. The increase during the day was 4.6% and during the week 7.8%. This is a good start to 2020 for Bitcoin, which increased by 18%. This is great news after 2019, which was very volatile for BTC. Today, Bitcoin has also broken the 200-day moving average. The latest price action may suggest that the $8000 limit will work as support. Traders are watching if $8300 will turn from resistance to support.
Investors hope that Bitcoin will return to large increases. Nevertheless, BTC still has a local resistance zone ahead of it, as well as a psychological barrier at $9000.
The reason for Bitcoin’s sudden rise
The CME Group’s futures exchange introduced the Bitcoin option on 13 January after a long wait. This resulted in a major price spike. Experts say that the start of trading options combined with digital currency has improved market sentiment. Other reasons for the increase are the geopolitical situation, as well as the coming halving in May.
Singapore’s head of the exchange Luno, Vijay Ayyar, commented: “The price (Bitcoin) was to rise and the Bitcoin option on the CME probably added fuel. Most people believe this could be the beginning of a new upward trend, especially with halving approaching in May.
$7900s acted as support at the previous range in Sept-Oct 2019 & is currently acting as support now as the POC (point of control since May)
Test of $8750 should be next, test and close above should rip up to $9050+
If price breaks down, $7900s is support pic.twitter.com/yuf8G9yaPl
— Josh Rager 📈 (@Josh_Rager) January 14, 2020
Josh Rager, a well-known cryptocurrencies trader, claims that Bitcoin will soon test levels of $8750 and $9050. He also adds that in case of a price drop, the amount of 7900 USD will act as support.
BTC’s hard fork growth
After Tuesday’s session, Bitcoin’s hard forks were also clearly strengthened. Bitcoin Cash (BCH) has recorded dynamic growth since the beginning of January 2020. Over the last 24 hours, the growth was 6.5%, and during the week it exceeded 17.9%. The current Bitcoin Cash exchange rate is about USD 284, which is the best result in the last two months.
Another Bitcoin SV (BSV) recorded a sharp increase of 24.4% in just 24 hours, which exceeded USD 200 (for the first time in six months) and has now stopped at USD 204. This is the second such high increase in a week. Only on January 10, in one day, the cryptocurrency grew by 45%. In the last 24 hours, Bitcoin SV has grown the most of all the major altcoins. On a seven-day basis, the increase is record-breaking, as it is 78.6%. In terms of capitalization, this is the best result among the two hundred largest cryptcurrencies. There is therefore nothing but careful observation of the developing situation on the cryptocurrencies market and appropriate response to rapid changes.