Bitcoin skyrocketed above $5,000 yesterday. Is this the return of the bull market?
Two days ago, a mystery order of around 7,000 BTC (Bitcoin) was placed early in the morning, according to Reuters.
This order triggered a variety of bots around the world to purchase bitcoin, driving the price upwards even further.
This chain reaction then caused nearly every cryptocurrency’s value to increase.
What does this mean?
There are a few different theories:
I’ll analyze each theory.
#1. It’s too early to call this the return of the bull market. Especially considering this move was caused by one order. An order which was designed to trigger a huge number of bots.
#2. This very well could be manipulation designed for short term gains. The fact that it was one order that triggered this is suspect.
#3. I believe this is unlikely. You wouldn’t buy 7,000 bitcoin if you believed the price of bitcoin was about to get cut in half.
Whoever makes these kinds of orders knows what they’re doing and is likely manipulating the bitcoin market.
By making such a large purchase, they are saying “I believe the price of bitcoin is about to go up”.
The only question is whether they did this for short or long term gains.
And no one knows which is true.
Anyone that pretends to know is lying to you.
All an expert can do at this stage is make their best guess based on technical indicators.
The technical indicators say this is a strong bullish reversal that could result in a short term pullback.
If the market does pull back, it will likely pull back to either $4,500 or $4,260ish according to the charts.
As with any reversal, there is uncertainty however. Doubly so considering that the bitcoin market is manipulated.
My recommendation: Hold any existing bitcoin you have and wait. If you purchased some at $3,000 or so a long time ago, considering selling 20-30% of it.
We will know shortly whether this is the beginning of a bullish 2019. If it is, it might be a good idea to start dollar cost averaging into bitcoin, if you haven’t already.
Additionally you can use my proprietary trading strategies to lock in profits every step of the way.
I go over these in my Udemy course (coming soon – in May 2019)
Might as well say it…
TO THE MOON CRYPTOOOO!!!!!
Will Salisbury is the co-founder of Blockchain Decrypted and full-time cryptocurrency trader. He also hosts the Blockchain Decrypted podcast, and when he's not talking or writing about blockchain technology and cryptos, he likes to play games and relax in his home state of Michigan.
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