Bitcoin Price Surpasses $8,600 in Big Overnight Rally, Investor Eyes $28K

By CCN: Overnight, in merely minutes, the bitcoin price climbed from $8,000 to $8,600, unexpectedly recording a 7.4% increase on the day.

The bitcoin price has surged by $600 in minutes, spiking from $8,000 to $8,600 in a short time frame. | Source: CoinMarketCap 

Prior to the run of bitcoin, technical analysts generally anticipated the dominant cryptocurrency to see a pullback following its 100% year-to-date gain against the U.S. dollar.

At $8,600, the bitcoin price is now less than 57% down from its all-time high and is up 132% since January, within six months.

Strong Momentum Is Fueling the Bitcoin Market

Earlier this month, the bitcoin price briefly dropped to $6,400 triggered by the abrupt sell-off of 5,000 BTC on Bitstamp which triggered contracts on BitMEX to become liquidated. Some analysts said that a large pullback for bitcoin could be due, possibly to the $4,000 region.

However, speaking to CCN in an exclusive interview, a cryptocurrency trader who is known as “Satoshi Flipper” said he does not foresee a 30% retracement back to the $4,000 region. Rather, he said that the retracement will likely be 10% at most as it stabilizes above key support levels.

The trader said at the time:

“I’ve been definitely vocal about a healthy BTC retrace, but I do not believe it will be a drastic 30% retrace back into the $4k’s. Once we form a local top, I believe we will [drop] 10% at the most, then settle down sideways.

“That is when we’ll have a real altcoin season that everyone is expecting. Upon the immediate retrace, altcoins will take a small hit, but then when BTC settles down sideways, altcoins will rebound in a huge way.”

Since then, despite the 18% drop of bitcoin on May 17, bitcoin has rebounded to $8,600 supplemented with a substantial increase in volume, demonstrating a significant increase in momentum.

The “real 10” volume of bitcoin estimates the legitimate daily spot volume of bitcoin by calculating the volume of the asset on exchanges that have verifiable volume based on the research of Bitwise Asset Management. That volume has consistently remained above $1 billion throughout May.

In contrast, the daily volume of bitcoin in early March was at around $270 million.

As the sentiment around the market improves, technical analysts have said that $9,000 remains a realistic target for bitcoin in the near-term while venture capital investors expect the strong rally to continue in the medium to long-term.

$28,000 in play?

Max Keiser, the host of Keiser Report on RT and an early-stage investor in various cryptocurrency companies, has said that $28,000 for bitcoin is in play following its rally above $8,600.

On May 21, Alex Krüger, a global markets analyst, emphasized that bitcoin is facing a key resistance level at $8,500 and once that level is broken, the next resistance is found at $10,000.

If the bitcoin price continues to sustain its momentum as it enters the $9,000 region, traders may look toward the $10,000 mark, which historically has been an important psychological level for investors.

Potential near-term catalysts for the crypto market includes the opening of the CME bitcoin futures market on Monday and the noticeable increase in the volume of major crypto assets.