Twitter Users Dissect Why Bitcoin Price Popped to $7,200

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Written By: Crispus Nyaga

Apr 03, 2020, 10:57 BST 10:57

BTCUSD - Bitcoin

Summary:

Bitcoin price spiked yesterday and reasons were not clear. Here is how Twitter users explained the recent movement in BTC USD

Bitcoin price rose yesterday as optimism returned into the market. The price crossed the important level of $7,000 before making a slight pullback.

There was no specific reason why Bitcoin why the price rose. Some believe that the price rose after the Fed published its balance sheet, which showed that it was printing billions of dollars every week as Roy Sebag pointed it in Twitter:

Other traders talked about halving, which will happen between May and June. Halving is the process in which the amount of Bitcoin that is handed to miners is cut into half. As I wrote recently, history suggests that the price of Bitcoin has risen before having happens. The previous two halvings happened in 2012 and 2016.

Another likely reason is that many investors believe that the price of Bitcoin, which dropped to below $3,300 in March has already bottomed.

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Bitcoin Price Analysis

The BTC/USD pair rose yesterday to a high of $7,230 while volatility, as measured by the ATR rose. As the BTC/USD pair rose, it crossed the important resistance level of $6,875. On the hourly chart, the pair is above the 14-day and 28-day exponential moving averages. The pair will remain bearish if it moves below the (now) support of $6875.

Written By: Crispus Nyaga

Crispus Nyaga is an analyst and consultant with more than 8 years of experience. He started trading Forex while completing his BSc degree and he has worked for brokers like OctaFX, easyMarkets, & Capital. He has also contributed widely in leading websites like rkdream.com, SeekingAlpha, iNvezz, DailyForex, and BanklessTimes. In 2017, Crispus completed his MBA.