First Mover: Bitcoin Jumps as Fed Assets Top $6.5T and Traders Focus on Halving

Bitcoin, which after wild swings earlier in the year had stagnated over the past few weeks, finally broke out of its range on Thursday – jumping to the upside. 

Kevin Kelly, co-founder of Delphi Digital, a digital-asset research firm, said the price surge was consistent with historical patterns where volatility tends to pick up whenever the bitcoin futures contract on the Chicago Mercantile Exchange is nearing expiration. The April contract is scheduled to expire Friday. 

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The move upward may have been fueled by traders keying off market signals, according to Joe DiPasquale, CEO of cryptocurrency hedge fund BitBull Capital. Prices found a floor at the 50-day moving average around $6,800, breached a resistance level at $7,300 and now appear on track to push toward the 150-day moving average around $7,800, he wrote in an email to CoinDesk.

“As is often the case, the line acted as a resistance level on the way up, and now that we’re above it, the line is currently being tested as a level of support,” Mati Greenspan, founder of analysis firm Quantum Economics, wrote in an email to clients.  

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Source: TradingView

So where does that leave bitcoin? 

It’s now at the highest price since March 11 – the day before the “Black Thursday” plunge, when bitcoin tumbled 39 percent amid a flight to cash across both digital and traditional financial markets, as the devastating economic toll of the coronavirus came into view.

Bitcoin is now up 5.1 percent year-to-date, a performance that looks impressive compared with the 13 percent drop in the Standard & Poor’s 500 Index. The cryptocurrency still trails gold, up 14 percent on the year. 

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