Within the hours leading up to press time, there is no doubt that the volume of Bitcoin buy orders have greatly surpassed the number of sales, causing the price of the cryptocurrency to move above $11,500 for the second time in less than a month.
The latest move also is one that the new asset class has sustained through a number of days with the initial signs of a slight bullish reversal kicking in on the last day of July.
Since then, Bitcoin (BTC) has added more than $1400 to its value, leading to fresh skepticism that the current bull market is either back on track or here to swallow impatient investors.
It is important to note that it has taken less than five days for the price value of Bitcoin to move from below $10,000 to its press time figure of $11,400, a kind of move that historically results in pullbacks.
The only way to ride the season will be to either keep an eye on the charts and watch the market react to Bitcoin reaching the previous 22-day highs or continue playing the long term game which will pay off.
However, it is pertinent to note that Bitcoin must find new support and consolidation levels near its current price ($11,500) for the latest spike to be considered a genuinely bullish reversal. Otherwise, a free market run to the top would be regarded as a bull trap, leading to increased volatility to the right or wrong way for investors.
As shown in the charts, only a $200 flash crash within the space of a few minutes represents the major downtrend on Bitcoin price within the last 4-hour.
Also, expect whale traders to take some profits off the table at some point, a situation that led to the price pullback when the cryptocurrency briefly touched $13,000 in early July.
Conclusively, the coming hours, and how several global markets react to Bitcoin’s new figures will be the final indication of how long it can sustain or slip below the current price.
At press time, Bitcoin was exchanging hands at $11549 with a market cap of $206.6 billion and also made up 67.6% of the total value of cryptocurrencies listed on Coinmarketcap.
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