May 30th, 2019
Bitcoin BTC has set a new yearly high, reaching as high as $8,905 before slightly retracing. Apparently, BTC has gained over 40% of the balance since the start of the year, a performance that is close to 45% from the lows recorded last year in mid-December. According to Coin Market Cap (CMC), the price rally was also accompanied by a large uptick in the 24-hour trading volume; an increase of $10.3 billion was added overall. (Data numbers taken from https://www.coindesk.com/bitcoin-hits-new-2019-high-above-8900)
Notably, BTC broke from an ascending triangle pattern on the daily chart after being held beneath $8,250 for quite a long time. The move towards this great high was recorded at 19:00 UTC on the 26thof this month following the $6,600 Bitcoin price drop on May 17.
BTC’s High Record Rise against Argentine Peso
Apparently, the high rise record happened to be more impressive in Argentina as it pushed Bitcoin towards 400,000 Argentine Pesos (ARS). The move followed a huge volume in BTC transactions from the South American nation. BTC transaction volume has risen consistently in Argentina despite the fact that inflation has posed a real threat to the state’s local currency. Allegedly, BTC transaction volumes have hit almost $14 million weekly in recent weeks.
Last year, inflation in Argentina surged by 50% and this year, the figure is expected to rise up to 86%. Already, the Argentine Peso has lost 83% of its value against the dollar in the past one year. Other inflation-tone countries, such as Sudan, Venezuela and Argentina are turning to crypto coins so as to preserve their wealth. –This greatly explains why the BTC high rise impacts so much on Argentina.
Ethereum Fails to Hit a New Rally
Asides from BTC other cryptocurrencies have also started showing life once again. Litecoin (LTC) and EOS have also pushed to new rally highs, hitting their highest levels in a year. Other major crypto coins have however failed to reach new highs, while Dash and Monero also got close to their respective highs thanks to the broad weekend rally. Ripple’s XRP on the other hand, is holding at its recently achieved high of $0.4 and seems to be aiming higher. TRON showed a nearly 14% appreciation, and Bitcoin SV (BSV) showed a nearly 17% high.
Despite the fact that Ethereum (ETH) did not skyrocket to a new high, the crypto coin managed to gain ground together with the broader market and is currently testing the $275 price level.
Possible Reasons behind the BTC Rise
More gains Ahead
Josh Rager, a crypto trader sees more gains ahead with BTC pushing past $9k;
“Goodbye meme triangle, hello $9k+ targets. Some people were screaming triple top when the more obvious conclusion is retest after retest of resistance will finally lead to a break to the upside. Bitcoin could cool off, run sideways but IMO will continue to move up over $9k”
Bitcoin prices have yet to recover to its all-time highs of around $20,000 in late 2017 when Crypto enthusiastic retail investors suddenly sent the value of cryptocurrencies dramatically higher. Right now however, eyes are firmly set on BTC’s new target along $9,650 resistance that was last seen on April 30 2018.
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