Bitcoin benefited from a 24-hour gain of nearly 15% on Wednesday, the largest daily increase since mid-April.
A fresh bear market began on 14th November, which saw the cryptocurrency shed nearly 40% of its value, with some pundits attributing the loss to the Bitcoin Cash hard fork. Monday, 26th November saw Bitcoin drop to just USD USD 3,600 – its lowest since September 2017.
The rally has Bitcoin back up to USD 4,218 at time of press.
What is behind the surge?
Mati Greenspan, market analyst at the multi-asset brokerage eToro, has said the increase is a price correction of the recent selloff. “The main driver of the market moves is technical,” he said, adding that the cryptocurrency market will benefit from the growth of the blockchain industry in the long run, putting it in a good position for long-term investments.
“We are still scratching the surface,” Greenspan said in regards to online, decentralized payment methods.
Calling cryptocurrencies ”high risk”, he did recommend that investors include them as a part of a diversified portfolio in order to minimize risks.
Other major cryptocurrencies have felt the benefits of Bitcoin’s surge, with Ethereum increasing 16% to hit USD 126, and Ripple rising 13%. The top 45 cryptocurrencies by market cap are indeed all seeing green.
Predicting the bull
One prominent trader, Crypto Rand, shared a Tweet prior to the surge correctly suggesting that an end of day rise would be an indicator for a change in direction Wednesday.
Keeping an eye on the daily close of #Bitcoin.
Looking to print a bullish hammer that could lead the reversal.$BTCUSD $BTC $XBTUSD $XBT pic.twitter.com/zs0LIvRZsr
— Crypto Rand (@crypto_rand) November 27, 2018
Bitcoin has struggled to maintain its value this year with losses of 68% since January, although some observers harbor hopes that this could be the start of a bull run.
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