Bitcoin Price Hits 20 Month High

Bitcoin Price Hits 20 Month High

The bitcoin price hits 20 month high and has has been on a tear recently. All indicators seem to confirm the longer-term bull-trend we have been analysing.

On May 28th we saw the price break through ZAR 7,890. This represents price levels not seen in almost 2 years.

The move on May 28th was a spike in a general short-term bull rally for the week. This represented a 6% price increase from opening, following and already 4%+ gain the previous day.

The eventual high for the day reached ZAR 8,360. After such a rapid rise it would be expected that the price would consolidated. It has done that.

Though we are still some R800.00 below the trading price from 48-hrs ago.

Bitcoin Price Hits 20 Month High: Possible Reasons

Market volume would indicate that the recent surge in Bitcoin, to 20 month high, is being driven by demand from China. There does not seem to be any identifiable fundamental reason for such a strong, quick, price surge. So it is uncertain that these price levels will remain.

We have been writing about the long-term bull trend a lot recently. These short term spikes lend credit to such contentions. An analysis of the long/short ratio in the market seems to confirm bullish sentiment. If the price increase continues so rapidly, then a short squeeze could come into play. This would potentially push the price much, much higher.

Rapid gains influence trader psychology greatly. Such psychology will directly affect price movements in the short-term.

Right now FOMO (Fear OF Missing Out) is a key factor. Traders would be buying at the increased price levels, with the expectation of selling quickly, at a profit. Lower entry buyers will take advantage of this, and dump to take their quick profits. Expect plenty of volatility.

This volatility will be set against the backdrop of the approaching halving event. This consideration will be weighing on the minds of traders and longer term holders, as the deflationary nature of the currency becomes a more stark reality, especially for those short Bitcoin prices.

One Response to Bitcoin Price Hits 20 Month High
  1. […] reported in our pricing and market analysis recently that the long term pattern was certainly bullish. While […]


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