Bitcoin price (BTC/USD) moves to test $3,900 level thanks to Tuesday spike

Bitcoin price (BTC/USD) moves to test $3,900 level thanks to Tuesday spike

Following its sharp rebound on Tuesday, the Bitcoin price (BTC/USD) has seemingly stabilised around the $3,900 mark.

The original cryptocurrency enjoyed a very strong session yesterday, as it was able to fully recover from the crypto sell-off seen on Monday. The digital coin saw some positive price action on Tuesday morning, which allowed its price to move within striking distance of the $3,800 mark. The coin had an even better afternoon session, as its price surged past the $3,800 level and hit a four-day high of $3,903.92. Eventually, Bitcoin finished the session at $3,896.38, well above its opening level of $3,759.83.

BTC has been hovering around the $3,900 mark since the start of today’s session. The coin rose to as high as $3,907.15 earlier and is currently trading near the level of its Wednesday close.

The coin’s advance has been supported by strong market activity, data from digital currency tracker Coinmarketcap show. Yesterday, BTC posted daily trading volume of $10.17 billion, which was its highest in nine days. Over the past 24 hours, $10.15 billion worth of BTC coin have been traded.

Analysts from Canaccord Genuity Capital Markets recently suggested that the next bull cycle for Bitcoin might already be underway. In a research note to clients, the analysts, Michael Graham and Scott Suh, highlighted how Bitcoin’s performance in the past four years has been strikingly similar to a trading pattern observed over the 2011-2015 period.

“Looking ahead, if bitcoin were to continue following the same trend as in the years 2011-2017, the implication is that bitcoin would be bottoming approximately now and would soon begin climbing back towards its all-time high of ~$20,000, theoretically reaching that level in March 2021,” the analysts wrote.

In today’s trading, the Bitcoin price stood at $3,896.66, as of 10:18 GMT. The digital coin has gained 3% in the past 24 hours. Its total market capitalisation currently stands at nearly $68.5 billion.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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