Bitcoin rose for the first time in six days. It climbed above $52,000 as the bulls pushed the price higher during the Asian morning trading session on Monday.
Bitcoin (BTC) rebounded from a 7-week low of around $47,655 in the rally that started around 22:00 UTC on Sunday. Then set its biggest hourly gain in two days.
As of 2:16 on Monday, the leading cryptocurrency transaction price was approximately $52,100. The buyer’s transaction volume was the highest hourly wage since April 23.
Traders are speculating whether BTC may be correcting. Joe Biden’s proposal to increase the capital gains tax on cryptocurrencies and other investments may pressure the market. Prices fell last week to their highest level since February.
Bitcoin’s Relative Strength Index indicates that the cryptocurrency is attempting a daily schedule rebounding from the oversold level of 30.00 on April 25.
Other major cryptocurrencies are also in a green state, with an average increase of 3.7% that day. Uniswap’s UNI token received some of the most significant gains, rising by more than 14% in the past 24 hours.
Asian stock indexes have been mixed in traditional markets, with the Hang Seng Index rising about 1.1%. There were no significant changes on Nikkei 225 and Nikkei 300.
How can we explain Bitcoin’s rise and fall cycles over the years?
Many people pointed out that Bitcoin’s rise and fall cycle is related to Bitcoin’s code mechanism. It automatically reduces the price paid to miners to half of the confirmation that miners conduct transactions on the network. In May 2020, when the miner’s reward automatically reduced from 12.5 Bitcoin to 6.25, Bitcoin experienced the third “halving.” Historically, after these events, the price of Bitcoin has been rising. The most recent time being 18 months after the second “halving,” the price of Bitcoin increased by nearly 3,000%.
Other technical traders are increasingly pointing to another pattern related to the Bitcoin price movement over the years. Known as the “stock-to-flow” model, it measures the existing supply, based on the flow, when new inventory is produced. A halving event halves traffic. When the analysts applied the measure to Bitcoin, they were surprised how the price of BTC stayed in line with expectations.
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