In one hour on September 1st, the price of Bitcoin (BTC) increased to $7,200 USD from $7,030 USD. Yes, the entire market is officially in upheaval as altcoins almost always take the direction of BTC. Take, for instance, BCH, NEO, ICO, EOS, TRX, ADA, LTC, and others have exhibited a surge anywhere from 5% to 15%.
Guess what? The surge happened within a 30-minute time span. This is good news for every cryptocurrency-asset trader out there. Yes, the market appears to be recovering this new month. More importantly, is this the momentum the market has been waiting for so long?
Importance of the New Price
Here is why the price surge is important. Last Thursday, BTC price fell from $7,100 USD to $6,800 USD, losing about $300 USD. Apart from losing the amount, the coin showed some reasonable level of vulnerability at $6,800 USD. As a result, many traders gave up on the coin already and expected it to drop to the mid-$6,000’s USD.
Sadly, the support levels dangled between $6,500 USD and $6,800 USD. Despite that, BTC put up a sweet bounce, settling at $7,000 USD a support level within 24-hours. This momentum and volume are good for the price of the virtual currency. Believe it!
Last Week’s Performance
Look at the last week’s performance; the entire cryptocurrency market stayed below $9B USD. In truth, this was the case as the daily trading volume of BTC and ETH dropped to $3.5B USD and $1.3B USD, respectively. Though Saturday, September 1st, 2018, the volume of the market went way above $9B USD. True, the market has spiked just above $13B USD. Nonetheless, the uptrend could be triggered by huge purchases at a lower price range.
Also, media reports say that the stability of Bitcoin’s price it exhibited in August was commendable. From CCN reports, August was the most stable month for BTC in a period of 14 months. In his opinion, Tom Lee, of market research firm Fundstrat, predicted that a rally is possible in Q4, 2018. Last week, Lee insisted that the hedge funds are playing crucial roles in the market. Truly, bullish Lee reaffirmed his belief that BTC price would return to its ATH of $20,000 USD in 2018. Today, a cryptocurrency trading tech company, SFOX, released a report confirming Lee’s findings.
What It Means for the Market
In no uncertain terms, this surge is good for the market. On major exchanges, including Binance, altcoins trading against BTC are beginning to look skywards. What’s more? Altcoins are showing bullish signs too. In conclusion, BTC has reached the $7,300 USD resistance level. Secondly, it has maintained $6,500 USD to $7,000 USD in August. Overall, a stronger market rally is a distinct possibility.
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