Bitcoin Price Increases By 5% in Minutes
The Bitcoin price increased by six percent to $4,070, breaking out of the $4,000 mark. With a 20 percent increase in its daily trading volume, Bitcoin has been able to show some momentum above $4,000.
But according to DonAlt, a cryptocurrency technical analyst , the slight increase in the price of Bitcoin is not sufficient to declare a trend reversal even in the short-term.
The analyst said:
“Finally an impulse. If today closes above resistance (4000) I’ll be looking for buy opportunities/close my hedge short. If it closes below resistance I’ll be looking for shorts. Dangerous to trade in any direction with the Finex maintenance coming up tomorrow.”
BitFinex and BitMEX, two of the largest margin trading platforms for Bitcoin will be running maintenance on January 7th, suspending trades.
If Bitcoin closes the day at $4,000 and shows some positivity in the short-term, it may allow the asset to prepare for upward price movements.
But generally, traders saw the price movement of Bitcoin as an uninspired move following poor several days subsequent to Christmas Eve