• With the fall of the USD 8,000 mark, the bears appear to have finally lost their last stand on the Bitcoin market yesterday, with the price climbing to USD 9,300.
• The reasons for the massive rally appear to be diverse, with the correlation to the stock market, Bitcoin Halving but also FOMO probably playing a big part.

After the Bitcoin price rose above the resistance zone between USD 7,800 and USD 8,000 early in the morning (UTC) yesterday, there was no holding back. Throughout the day there was a continuous upward trend, which was only stopped by a small setback at the 9,000 USD resistance level. However, even this mark did not last long, so that Bitcoin climbed up to around USD 9,300. At the time of writing, the price consolidated slightly so that Bitcoin was trading at USD 9,275.

Reasons for the Bitcoin rallye

As always, the underlying reasons can of course only be speculated. However, it is obvious that the stock market also experienced a rally yesterday after it was announced in the US that a drug for the treatment of coronavirus could possibly come closer to reality. As a result, the S&P500 rose by 2.66% and the Dow Jones by 2.21% yesterday. The much-discussed correlation between the stock market and the Bitcoin price in times of the corona crisis has thus once again become obvious.

Another factor that may have carried the rally is the break through the extremely strong resistance zone at the USD 8,000 mark. As CNF reported, on-chain data from Intotheblock showed that there were 1.5 million BTC wallets buying at this price, so a dump seemed realistic. However, the rapid and significant breakthrough through the USD 8,000 mark may have created a fear of missing out (“FOMO”) among many investors.

At this point, the imminent Bitcoin Halving, which is expected on 11 May, certainly plays a role. FOMO is also reflected in a massive increase in buying volume on the most important crypto exchanges, such as Coinbase and Binance . Binance, for example, recorded a trading volume of 14 billion in the past 24 hours, an increase of around 250 % over the previous day. Other exchanges such as Coinbase (+300 %), EtherFlyer (+259 %), LBank (+280 %) and Bitcoin.com (+800 %) also recorded massive increases in trading volume.

Remarkable was also the development of the Relative Strength Index (RSI) yesterday, a technical indicator, which reached a value of 96, almost hitting the maximum value of 100 for a short time. Such high RSI values are very rare. The last time Bitcoin experienced an RSI close to 100 was before the massive rally of 300%, to $20,000 in 2019, so the indicator could indicate that Bitcoin may be on the verge of a similar rally.

The analyst Josh Rager noted that Bitcoin could close in green for the seventh consecutive week. The last time Bitcoin recorded profits for seven weeks in a row was when it rose from USD 3,500 to over USD 5,100 in March to April 2019.

https://twitter.com/Josh_Rager/status/1255602707219582981

The crypto-trader “Credible Crypto” wrote that as long as the $8,000 mark holds during the next major consolidation, he expects the bullish momentum to continue.

Bitcoin outperforms Altcoins, yet strong gains

Even though Bitcoin has recorded the largest gains in the last 24 hours with a plus of 18.3%, the Altcoins are also posting strong gains. Within the top 20 by market capitalization, the biggest winners are Ethereum (+12.3%), Bitcoin Cash (11.9%), Bitcoin SV (+15.5%), Cardano (+13.3%) and Crypto.com (+12.5%).

Recommended for you:

• Buy Bitcoin Guide
• Bitcoin Wallet Tutorial
• Check 24-hour Bitcoin Price
• More Bitcoin News
• What is Bitcoin?