Bitcoin Passes $4,500 for the First Time in 2019 During 4 Hour Candle
“Cryptocurrency volume increases by $20 billion during Bitcoin rally”
By Block Society
On April 2nd, 2019 at 12:00am EST, Bitcoin began rallying, peaking at just over $5,000.00 by 1:15 a.m. EST. Bitcoin buying volume reached a record high on cryptocurrency exchange Binance and during a 4 hour run, buy orders reached 49,103 compared to 5,655 sell orders. Binance is currently the largest global cryptocurrency exchange by trading volume.
Between 0:00 UTC and 4:00 UTC, 250,222 buy orders were completed on Binance, compared to only 39,670 sell orders. The 4-hour candle run exceeded the Bitcoin run on October 15, 2018. Bitcoin passed $4,500 for the first time in 2019 and many other cryptocurrencies saw a considerable gain, including Ethereum, Ripple and Litecoin. Bitcoin peaked at $4,849 and maintained a 14% gain, at times reaching gains surpassing 20%. Ethereum and Ripple also saw 6% gains.
There was an order placed for 20,000 BTC by an unknown buyer on April 1, 2019, which was completed on three exchanges: Coinbase, Kraken and Bitstamp. The significant buy order occurred shortly before Bitcoin prices began increasing, signally that the order may have sparked the Bitcoin rally.
Analysts have not found a specific development that would explain the unexpected order. The 20,000 BTC buy order sparked growth for various, lesser known altcoins as well, demonstrating how BTC rallies impact the larger cryptocurrency market.
“Bitcoin passed $4,500 for the first time in 2019 and many other cryptocurrencies saw a considerable gain, including Ethereum, Ripple and Litecoin.“
DataDash, a cryptocurrency analyst, shared that the rally will encourage and incentivize Bitcoin spot trading, stating:
“We have to understand that over the past months, we’ve had a good opportunity for OTC buyers to finally start picking up Bitcoin at these [lower] levels. And once they have enough incentive, once they have enough at stake in Bitcoin markets, once they’ve built up their long-term positions, they have an incentive to trade on spot market. Meaning, to clear through the order book to start buying positions on spot market.
Why would they do that? Well, it’s because they’ve got a much more substantial position that they bought OTC where they didn’t incur slippage. And now they have an incentive for price to actually have slippage to the upside, to clear through that order book, to buy some extra Bitcoin on an exchange, really across most of the major exchanges, probably around 50,000 or 60,000 Bitcoin, and from there actually increasing the value of their much larger position. And this can happen in crypto markets, whether people think it’s moral or not. I think that’s substantially what’s happening.”
While it is promising that Bitcoin prices are still hovering around $4,700 15 hours after the surge, cryptocurrency analyst Nic Trades warned that “If we come back more than 50% of this swing, that’s where I would be concerned and would say that this is probably a false breakout… I would be a little bit less bullish if we close back underneath the 200-day moving average line. A daily close under $4,714 wouldn’t be quite so positive.”
Overall, market volume increased $20 billion since the massive BTC order.
Babayan, Davit. 2 April 2019. Bitcoin Buy Volume Reaches Record High on Binance. https://www.newsbtc.com/2019/04/02/bitcoin-buy-volume-reaches-record-high-on-binance/
Berman, Ann. 2 April 2019. BTC Hits $3,800 for the First Time in 2019, Top Crypto Markets See Double-Digit Growth. https://cointelegraph.com/news/btc-hits-4-800-for-the-first-time-in-2019-top-crypto-markets-see-double-digit-growth
Wilson, Tom and Tommy Wilkes. Bitcoin Jumps 20 Percent, Mystery Order Seen as Catalyst.https://www.reuters.com/article/us-crypto-currencies/bitcoin-soars-20-percent-mystery-buyer-seen-as-catalyst-idUSKCN1RE0JY?fbclid=IwAR2P8pBo3YnO38Uj7nLnL6ZxPwIznG-f-LK7YgproPKTF5QZxru9T2Y4y3A
Daily HODL. 2 April 2019. Massive Bitcoin Whale Triggered BTC Surge With $100 Million Order, Says Crypto Investment Firm SEO. https://dailyhodl.com/2019/04/02/massive-bitcoin-whale-triggered-btc-surge-with-100-million-order-says-crypto-investment-firm-ceo/