Bitcoin (BTC) was playing no April Fool’s jokes today, making its largest percentage move in the past year.
In the first quarter of 2019, altcoins have been stealing the show — with many making huge gains in the double and triple-digit percentages.
Bitcoin (BTC), however, remained relatively quiet — putting in higher-lows and topping out at a horizontal resistance at $4,200. The month of March saw the first and foremost cryptocurrency make a slow and steady climb to, once again, challenge that ceiling and the heavy descending trend line, which has been suffocating the price since crashing from its all-time high of nearly $20,000 at the end of 2017.
It appears as though that negative trend may finally have been broken today, as Bitcoin surged from $4,130 to over $5,100 in the span of just one hour.
The last time Bitcoin logged a move of $1,000 in a day was almost exactly one year ago in April 2018 — when it made a move from $7,000 to $8,000
Since making its initial pump, Bitcoin has cooled off and is settling around $4,750 — slightly above the 200-day moving average.
This jump in price could very well be a false breakout or a hunt to liquidate Bitcoin short positions. The previous horizontal resistance at $4,200 should now at the very least act as new support. The new levels of resistance to the upside will likely be the psychological $5,000 mark and $5,500 beyond that.
In the worst case scenario, Bitcoin could slip back below the $4,200 level to the next higher-low position around $3,600. Long-term trend analysis has suggested that the tides of the cryptocurrency mark are due for a turn-around and that the bottom has already been set.
Do you think this recent surge is just a fake breakout? Is this a sure-fire signal that the ‘crypto winter’ is finally over? Let us know your thoughts in the comments below!
Images courtesy of TradingView.