The last day has been an emotional one for Bitcoin traders keeping an eye on the cryptocurrency markets. Specifically, the price of Bitcoin embarked on a wild rollercoaster ride. After skyrocketing past $10,500 – in the biggest daily price gain for Bitcoin since 2011 – the price of Bitcoin has since subsided to around $9,000.
Bitcoin sees biggest daily gain since 2011
This came as the price of Bitcoin had been trending downwards for the past week. In fact, some market spectators were already predicting a price drop for Bitcoin down to the levels around $7,000. Furthermore, some even more bearish observers said that revisiting levels around $6,500 could be possible.
Nevertheless, October 25th saw a dramatic bullish breakout. Some traders, such as Michaël van de Poppe and Scott Melker identified a series of bullish divergences on multiple timeframes. However, even the most bullish traders were likely surprised by the dramatic increase in the price of Bitcoin that was to follow.
In fact, a frantic Bitcoin rally ensued, which saw the price of the premier crypto pushed to $10,540. This dramatic price increase represents the biggest daily gain for Bitcoin since 2011 – however, it did not last entirely.
The price of Bitcoin has since subsided somewhat, which is only to be expected after such a dramatic increase. At the time of writing, Bitcoin is trading just above the $9,000 line. As such, Bitcoin has still seen notable intraday gains.
Bitcoin could soon be ready for “blue sky breakout”
Although it is not clear exactly what sparked this massive jump in the price of Bitcoin, many look to China. Specifically, the recent comments by Chinese President Xi Jinping, urging the country to adopt blockchain technology on a wide level.
This is a notable development, seeing as Xi’s word carries significant weight concerning Chinese governmental policy. Wider Chinese adoption of blockchain technology could both lead to increased international blockchain adoption, as well as drive innovation.
Some observers have suggested that this might spur further development within the field in other countries as well, seeing as other nations would not want to fall behind China’s blockchain efforts.
In addition to this, others have also said that Bakkt’s Bitcoin futures being back to all-time high volumes as another factor that may have bolstered Bitcoin’s recent surge. Nevertheless, observers have said that Bitcoin could be ready for a “blue sky breakout” if it manages to surpass the $12,000 barrier.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.