Bitcoin (BTC) Back Above $4,000 on Short-Term Optimism

[Ozark]

BTC prices broke the $4,000 level, growing fast in just a few days, but a rally back to $6,000 is still under question.

Bitcoin (BTC) returned to the $4,000 level as trading volumes expanded beyond $8 billion in 24 hours on renewed optimism. For now, however, a rally up to $6,000 is still under question, with more price levels to conquer.

BTC is seeing the usual support from USDT pairings, which build more than 54% of total volumes. The BTC rally this time coincided with altcoins regaining positions from recent lows.

However, cryptocurrency observers point out that bullish attitudes are still very tentative:

https://twitter.com/CryptoShillNye/status/1075477694370918400

The current rally is happening as a result of momentum building up this week, with none of the usual events such as an injection of USDT on Bitfinex. The last large tranche of USDT to the exchange happened on November 25. Still, Bitfinex remains important for the position of BTC. The fundamental factors have not changed for Bitcoin - the promise of an ETF is still distant, the hashrate growth is still relatively slow, and the network is not carrying unusual transaction loads.

At the same time, the selling may have slowed down after more than a month of sudden shakedowns, and a year-end rally has happened at least in the short term. Until the end of the year, selling may be slow, to avoid having to report tax gains for the current year.

There is still skepticism that the current run up from $3,200 is due to unfair trading practices, such as spoof orders:

https://twitter.com/Ilikedtolurk/status/1075358637193920512

In the past, BTC has shown the possibility for very fast daily gains, adding as much as $1,000 in a day. This time, the gains are slower, and the skepticism has increased, taking note of faked volumes, as well as concerted pump efforts.

At the same time, the Bitcoin Cash (BCH) rally is also even more significant, as the coin grew by more than 36% in the past day. BCH easily crossed the $150 level, and traded as high as $165.61 as of 14:00 UTC.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.

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