Since the start of April, bitcoin was mostly treading water below the $7,000 threshold. The volatility decreased, and there were no any interesting and significant drivers in the market as of late. But three days ago, the demand started to reemerge, and on Thursday, the digital currency jumped north aggressively. Today, BTCUSD continues to attract buyers, probing fresh April highs above $8,000.
Interestingly, there was no any clear catalyst behind the rally. The cryptocurrency market in general saw major bullish spikes yesterday. Partly, the reason is a technical one as after numerous attempts to break below the support at $6,400, traders started to exit shorts which eventually caused a self-sustaining chain reaction. Therefore, the key driver behind the recent jump is just the easing selling pressure.
It’s so far unclear, whether the virtual asset will be able to maintain the current bullish impetus. But the market is obviously remains volatile and unpredictable. Therefore, it’s better to be cautious for now as profit taking may emerge soon. So far, it’s too early to say that bitcoin is back on a bull run, as we need to see a more sustained and less emotional gains down the road.
By Helen Rush
Senior Analyst at Capital Markets