Bitcoin up to $5000 because of a whale
The CEO of cryptocurrency firm BCB Group says Bitcoin’s rally to 5000$ was triggered by the trade operations for $100 million (20 thousand BTC) of a single Bitcoin whale. The expert paid attention that the trader has divided the sum to 3 trading floors: Coinbase, Kraken and Bitstamp.
"There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC. If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour." — The CEO of BCB Group reports.
We recall that the price of the main cryptocurrency grew on April 2, having overcome the point of $5000 for the first time since November. The price has returned to $4800 which is 16% higher, than the largest one-day gain since April 2018.
Crypto analyst DataDash says at some point, he believes large holders of Bitcoin who have accumulated BTC in over-the-counter (OTC) trades will have a large incentive to begin spot trading on crypto exchanges to lift the price. Dailyhodl writes:
"We have to understand that over the past months, we’ve had a good opportunity for OTC buyers to finally start picking up Bitcoin at these [lower] levels. And once they have enough incentive, once they have enough at stake in Bitcoin markets, once they’ve built up their long term positions, they have an incentive to trade on spot market. Meaning, to clear through the order book to start buying positions on spot market."
DataDash considers that now the holders of BTC who came from the OTC-markets are rather motivated to push the price up and to buy more bitcoins at the large exchanges. According to the analyst, the cost of their larger positions will increase.
As for the direction in which the market at the moment moves, the analyst Nic Trades advises to pay attention to the possible decrease after the pump:
“If we come back more than 50% of this swing, that’s where I would be concerned and would say that this is probably a false breakout… I would be a little bit less bullish if we close back underneath the 200-day moving average line. A daily close under $4,714 wouldn’t be quite so positive.”