Bitcoin broke the $4200 level and spiked to $5000 on some exchanges. Is this the much-awaited bull run? Let’s see what is really going on.
Possible causes for this surge?
There is a lot of speculation at the moment. Some believe that the surge took place due to some April Fool’s day jokes.
SEC Approves Bitcoin ETFs Early Next Month, Dodge Education Network Pledges Commitment, Tron Founder Got Nominated For The Nobel Prize In Economics, JP Morgan Drops JPM Coin And Embraces XRP, Swiss Media Giant Adopts Bitcoin And Pays Employees With It. Ha, gotcha!
All these news have been nothing else than April Fools jokes and I hope you did not fall for any of those.
Some of them were pretty obvious. Some were even posted as April Fools jokes, while some were not. Take the “Swiss Media Giant” news for example, which has been confirmed as an April Fools joke just recently. To be honest, even I fell for this one and I was considering it as one of the factors involved in Bitcoin’s surge.
The SEC joke was posted by the SEC Officials on their social media. Every joke is made with a grain of truth and maybe, this is something that we have to watch out for. Good news or bad news, we will see what the future has cooked for us. I personally think it’s not a great idea to make such jokes if you are an SEC Official through. It can obviously evolve into rumors or even affect markets.
“JP Morgen Drops JPM Coin And Embraces XRP”, obviously this was a joke.
About the Tron Founder and his Nobel Prize in economics, there is no confirmation yet but, I am pretty sure that it’s a joke. Justin Sun would let the whole Twitter community know as soon as something like that would happen.
I don’t think that any of these jokes have been the cause of such a big surge in Bitcoin but, if that’s the case, it just added fuel to the fire when BTC broke above $4200 and nothing else.
What to expect?
As I mentioned in my previous article, I was expecting BTC to test $4200 again and breaking it should indicate a bull run.
Once BTC broke above $4200 it started to fill some other orders that were expecting a bull run and then more investors jumped in. That is what I believe is responsible for such a huge surge in price.
If we have a look at the daily chart, it indicates that BTC has been heavily overbought while it broke the previous channel which lasted for quite a while and we are currently above the 200EMA.
Looking at the weekly, we can see that we are not even near to the overbought area but, we are on the 9th TD count which is a very strong bearish indicator. A correction to the $4200 area somewhere at the end of the week is very possible, after that, it would recover but I believe it’s more likely to stay above the 200EMA.
In conclusion, given the altcoins that are pumping, BTC gets some of its volatility back and the break above 4200 indicates a bull run to me.
Please, keep in mind that this is not financial advice, it is just me sharing my opinion. I am not a financial advisor. Always make sure to do your own due diligence before investing.