After waiting for weeks to see Bitcoin swing past $7900 to $8300 range, the digital currency surprisingly moved from the region in a twinkle of an eye to touch $8900.
While many have predicted Bitcoin will soon go below $6000, the cryptocurrency community was entirely surprised for the breakout which successfully faced the upside direction.
Respected Bitcoin experts like Tone Vays are unable to decipher the backbone of the ongoing rally.
As it is now, the cryptocurrency market, following the direction of Bitcoin, added around $28 billion to its total value, leaving crypto enthusiasts in a state of happiness.
Bitcoin, the king of the coins, was revolving around the $7,950 level for days, dropping down to $7,500 at some points.
Just after touching $8000 level, Bitcoin mooned to $8,900 on some exchanges. However, at the time of writing, Bitcoin is changing hands at $8,737 with Ethereum and XRP, priced at $288 and $0.413 respectively.
This Monday morning, the whole market is wearing a completely green toga today, with TRON and Bitcoin SV leading the rally.
While the reasons for the upsurge cannot be precisely pointed at, analysts are looking at the rally from different perspectives, with some claiming institutional involvement is among the reasons Bitcoin soared.
Bitcoin Surging to $8900: This is FOMO Phase
Veteran chartist with close to 40 years’ experience has given his view of the present price increase, saying the movement is just a FOMO phase.
The Bayesian probability trader, who only finds happiness in calculating and reading market charts, says the moment almost all the sold-out crypto bulls capitulate and chase this rally, traders needs to look out for a possible correction that will stop the same bull impeding Bitcoin’s advancement.
He said: “This is the FOMO phase of the advance. Once the majority of sold-out crypto bulls capitulate and chase this rally a more sizable correction will likely occur, stopping out the same bulls, who are chasing this advance.”
Expect Bitcoin Declining By 80%?
Peter Brandt’s opinion was greeted with diverse comments from Twitterratti. One of his follower accepted his views saying after a blow of parabolic top like $20,000, there may be an approximately 80% decline.
He said: “Yes, after a blow off parabolic top like $20,000 you get an ~80% decline. During the run from around ~$200 to ~$20,000, you get the ~100-300% advances and ~30% drops.”
Disclaimer: This article is written for educational and informational purposes, it should not be misconstrued for a financial advice. Cryptocurrencies are generally volatile, investing what you won’t want to lose in any of them is risky and done at your own peril.