Bitcoin touched a recent excessive of $58,000 on October 12 in accordance to information from CoinGecko. At the time of writing, Bitcoin’s costs are at round $57,000, and it is nonetheless pushing in the direction of larger resistance ranges. Since the start of October, Bitcoin has been posting new month-to-month highs, and the latest value has been a five-month excessive for the coin since May 2021.
Over the previous two weeks, Bitcoin’s positive factors stand at over 35% and round 18% prior to now seven days. This latest bullish rally has been attributed to the assist by institutional traders.
Flash Crash on Bitstamp
Despite Bitcoin’s value motion being one of many most-watched available in the market, there was a discrepancy on one of many main change platforms. A dealer took to Twitter detailing a flash crash on the Bitstamp change the place costs dropped to round $51,000 after a dealer made a $40 million spot sale.
Despite the large flash crash in Bitstamp, the worth of Bitcoin on different cryptocurrency exchanges remained unaffected. Before the flash crash, Bitcoin was buying and selling at $55,000 on the change earlier than taking a significant dive. An evaluation of the crash additionally reveals that round 212 Bitcoins have been bought throughout that interval, which more than likely brought on the crash. Nevertheless, the worth recovered simply as quick.
Such crashes are a typical incidence within the crypto sector. The worth of an asset can fall by double-digit percentages in a number of seconds, particularly if a significant sell-off occurs. Altcoins are additionally not spared from such dips. Polkadot suffered the same crash on its perpetual futures contract, the place the costs dropped from round $33 to $0.20 earlier this yr.
Bitcoin Leading in Crypto Gains
Bitcoin has been among the finest performing cryptocurrencies this month. On September 30, Bitcoin fell to beneath $41,000, but it surely has made a swift restoration by over 30% to attain $57,000. Most of the positive factors made by Bitcoin this month have been attributed to retail traders and whale addresses that accrued extra cash in the course of the dip.
Data from Google Trends has proven that retail traders are but to be part of the bullish rally regardless of the positive factors. This may point out that a fair stronger bullish rally may happen within the coming months after these small merchants enter the market.
On the opposite hand, the Bitcoin Fear and Greed Index reveals that Bitcoin has moved to a territory of “extreme greed”, attributed to the latest value positive factors. When excessive greed is detected, it could lead on to a value adjustment in the other way.
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