3 reasons why the Bitcoin price has just almost risen to $ 8,000 again

The Bitcoin and crypto markets have been in turmoil in the past 24 hours: The Bitcoin price has reached $ 8,000 in the short term. It was the biggest move of the year so far – with a $ 12 billion plus for total market cap. But how did it come about?

Crypto market cap has just hit a five-week high of $ 212 billion. Most recently, market sentiment was so bullish in late November, but the following month fell to a low of $ 175 billion on December 18.

Since the beginning of the year, crypto asset markets have grown by 11.5% or just over $ 20 billion. However, it is still too early to start a rally.

As usual, Bitcoin was one of the catalysts for bullish momentum. According to Tradingview.com, BTC rose from its intraday trading range by $ 7,500 to hit a 47-day high of $ 8,000.

So far, BTC has increased by 9.5% this year, most of it within the past eight hours. As usual, there was a slight withdrawal from this psychological barrier, but at the time of writing, the Bitcoin price is just under $ 7,900.

1. Fresh capital flows into the markets

Bitcoin’s upward momentum appears to be driven by a broader global financial flow into equity markets and commodities like gold and oil. The gold price has hit a six-year high today, according to the charts.

Tensions have escalated since the US air raid on Iranian targets, and investors are turning to secure investments, which now include Bitcoin.

2. BTC trader without tether

Recent research from IntoTheBlock has shown that the same few BTC change hands at this level, which is why there has been no break above $ 8k. At the moment, the markets are opposing this knowledge as the BTC bulls are pushing the resistance zone even more.

After a six-week consolidation phase, traders now seemed bored in this low $ 7k range – pushing the number 1 cryptocurrency up.

In addition, the Tether printers have picked up speed again, as a spike in market capitalization on Coinmarketcap.com indicates. As a result, Bitfinex CTO Paolo Ardoino pointed out that CMC had just added USDT to the Tron blockchain and there was no new edition.

. @coindesk please verify data accuracy before writing. CMC just fixed their data, no issuance here, no news. Redact or delete the article please… https://t.co/yVXmpVs9LJ

— Paolo Ardoino (@paoloardoino) January 7, 2020

3. BitMEX transactions

The Bitcoin price usually pumps when there has been a significant liquidation of shorts on BitMEX. A look at the data shows that nearly $ 8 million has been liquidated in the past 6 hours, which added to the momentum.

Where is the Bitcoin price going next?

Analyst and Bitcoin advocate Tone Vays suspects the next level of resistance at $ 8,300.

Trading #Bitcoin – $BTC Pumps to $7.8k where is resistance? is $8.3k next?https://t.co/lTQ9u7UACi

— Tone Vays [Vegas – Unconfiscatable.com] (@ToneVays) January 6, 2020

With the help of technical analysis, Vays has set up a few trend lines in his video that have been broken in less time. He compares this rally with that of late November and adds: This pump alone is not enough for a longer-term Bitcoin bull market.

He believes there is still a 60% chance the Bitcoin price will drop below $ 7k again. The weekly chart is still not really impressive, and the candles have to close over $ 8,500 for a real rally.