Hello, Bart my dear friend!
Bitcoin went parabolic after months of ranging between the bottom of $3,200 and $4,100, showing everyone that the crypto market is alive.
After staying low and watching from the sidelines to the last couple months of the boring crypto bear market and what has followed… We decided that it is the right time to make it back on the scene and start providing you with the latest news, ICO reports, and educational posts, as we did before… Our first article will be a short retrospection of the last couple of months within the crypto market – the news, the FUD and the FOMO.
Let’s start with the most intriguing and widely known thing – the big explosion of the king of coins BTC. After breaking the $6000 support and finding the current bottom of $3,200, BTC was acting like a sleeping bear, which occasionally wakes up to take over some of the sweet positions in both long and short directions. The ranging between the bottom and $4,100 continued for over 4 months, starting early December and took a big turn 2 days ago when Bitcoin suddenly surged with more than $1,000 for around 2 hours. The move has been unexpected and REKTed a lot of traders, but it was quickly accepted by the crypto community, which saw hopium. People got reminded for the good old days, in which moves like this was just an ordinary Tuesday, not a biggie.
Despite reminiscent to a big massive Bart move, the pump actually caught the eyes of a lot of people, both familiar with crypto trading and the normies. According to Google Trends index, the worldwide interest for Bitcoin exploded during the last few days, increasing over 75%.
On the 2nd of April – the day of the pump, Bitcoin was the second most searched term in Google, with over 50,000 searches in the US alone.
In addition, Bitcoin ranked the hottest new keyword in Baidu, the Chinese analog of Google. Further enhancing the euphoria and spreading the news of the massive move.
Biggest daily volume until today.
Meanwhile, the crypto volume on the 2nd of April was more than $21 billion, the biggest daily volume until today.
The interest spikes were really positive for the overall exposure of the crypto market in general. Yet, for many people the euphoria and the FOMO, were created mainly because of the 1st of April jokes which flooded the internet. For example, on the day of the spike, there have been reports that SEC finally approved the long-awaited Bitcoin ETFs, in a secret meeting on Saturday. Other, started reporting that the move was caused by a single whale, who bought 20,000 BTC across multiple exchanges, using bots.
The real reason for the pump is still unclear, but we can honestly say, that a big move whether up or down was required, in order to show what is the overall crypto market capable of. Our opinion is that the fake news for the SEC will have a negative impact on the long-term. Everybody is waiting for institutional adoption and ETF approval and while putting fake news and clickbaits, during such a massive move, and actually involving the SEC commission in them will only show that the crypto market is still immature for wide institutional adoption.
Currently, the market is finally cooling down from an overextended wave following the pump. The breakout was strong and will give bulls a definite advantage over the course of the next months. We believe that the market is still in a bullish phase, but it is too early to call the start of the new “Bull Run”. Our opinion is that we first need a retracement and possibly trying the support in the 4,800 area. The fact that the market has extended 1500$ without a retracement makes it extremely risky for trading. As long as it hangs around the current area, the market is bullish and shorting isn’t advised. Once a “natural” retracement will come in from profit taking, people will be able to launch new positions.
One thing is clear, it’s a whole new market and times are very exciting. Next weeks and months will be a lot of interesting, so stay tuned.