Bitcoin Saw its First Post-Halving Rally
Since Bitcoin (BTC) halving took place on May 11, the top cryptocurrency saw a 12 percent increase. Technical indicators such as the 10- and 50-day moving averages called for bullish levels since May 13.
Head of the crypto brokerage BCB group Mark Warner raised futuristic concerns about the coin. As of now, miners will stay with its safety amid the pandemic despite its uncertain futures. In a broader light, the firm expects to see growing demand until the supply shock meets its prices.
The total number of outstanding contracts for BTC spiked since May 5, showing signs of institutional interest. The figure reached a record $105 million high yesterday compared to the $13 million daily average achieved on January.
Said contracts, called CME, are mostly done by well-capitalized investors. These traders should have experience in trading derivatives. Therefore, the recent rise was most likely because of CMEs.
Some experts claim that increasing popularity in bullish bets also pushed the coin up to this mark. Many investors believe that it would reach $10,500 this May with the expectations that it will experience high volatility throughout.
These swings should motivate investors to buy a specified amount of a certain asset within a predetermined timeframe and pricing.
Although Bitcoin reached down the $10,000 pre-halving high, the market still looks forward to another surge soon. Some economists even claim that the coin is still undervalued, and its price will continue to rise for two months.
Yesterday’s rally closed the CME gap from last weekend.
All that said, BTC is still bound to reach certain resistance levels near-term. After it reached a near-$10,000 rally yesterday, the coin fell by $500 from $9,750 to about $9,200 today.
It broke key resistance levels of around $8,000 and $9,000 yesterday, so many analysts believe that it could surge higher. However, it still closed below the $10,400 target by a landslide.
That said, charts show that its prices saw a $28 million liquidation level in 20 minutes yesterday. The same predicament could happen throughout the next upcoming weeks, but sentiments remain strong.
Investors believe that if the coin manages to close above the $9,550 mark today, it could still trend upwards. If not, it would have to meet the $10,000-mark next week.
Another analysis called for the coin to reach $9,350 to eventually touch $10,500. HornHairs claimed that Bitcoin will continue to show high volatility for weeks on end.
Meanwhile, Tether Doubles
Year-to-date, Tether (USDT) managed to double its market capitalization from $4.3 billion to $8.8 billion. Thus, it surpassed its XRP rival’s place as the third-largest cryptocurrency by market value short-term.
Although there’s no concrete evidence as to how it managed to push through the boost, Tether usually increases with Bitcoin. The altcoin showed rapid increases in newly printed USDT since the end of March.
At the time, the coin met a 34% increase in market cap. Yesterday, it met another increase of 2 billion.
Nevertheless, Tether remains behind XRP in time of writing since the latter saw a market cap of $8.95 billion.
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