Bitcoin has been swinging wildly this week. The price of the Bitcoin rallied to nearly 40% in just 24 hours. This has happened after a few rough days on the trend chart.
The token was at an intraday low hovering at $7,393.26, and its price touched $10,332.41 today. The gains during the day happened in just a short period of time. The price of the Bitcoin declined sharply before Mark Zuckerberg gave his congressional testimony, and the token has been having a terrible time until its rally today. There was a sentimental slump because investors believed that the price would move lower, and it did go down.
Recently, a technical formation known as the death cross was emphasized. This technical formation indicated further losses due to the 50-day moving average, which dropped below the 200-day moving average.
Xi Jinping, president of the People’s Republic of China, went ahead, emphasizing the opportunities provided by blockchain technology. The upward movement of the Bitcoin has forced the speculators to close their short positions. The price movement has triggered a FOMO (Fear of Missing Out) in the minds of the investors.
The comment from the President of the People’s Republic Of China was a positive catalyst that crept in at the most unexpected moment. Several bearish traders were caught off guard when this happened.
After dropping to the worse levels to nearly $7,000, Bitcoin has improved in its stand in the cryptocurrency market. Billions in value have added to the market capitalization of the coin.
While Jinping was talking about blockchain technology and the related innovation, it somehow influenced the recovery of the Bitcoin price.
There is a short squeeze happening in the market today. The value of the Bitcoin has increased rapidly, and short-sellers are trying to cover their positions. There is a buying volume, and the prices are going up.
The price jump that happened today with Bitcoin is very notable. So, we are expecting China to strengthen their study related to the standardization of the blockchain and eventually increasing investment in the sector.
The news about Google touching upon quantum supremacy has cast its share of influence in the price level. Cryptocurrency skeptics continue to state that advances in the quantum sphere will make the proof of work-based tokens like Bitcoin obsolete. The vote of confidence for the Bitcoin is different from different leaders, and it is now clear that the Bitcoin is here to stay – we need to get used to the if it crashes it will regain pattern soon.