Bitcoin’s price has rallied over the last few days and now sits at around the $7,500 mark. On 3rd January it was sitting at around $6,500, so the uplift in the last few days is pretty impressive, and very welcome for all BTC owners. Cointelegraph asks whether this means we are entering a new bull run, or is it simply a “final relief rally before Bitcoin drops to fresh lows?”
Keith Wareing writing for Cointelegraph says, “Last week I highlighted that the CME gap is becoming a regular trading event each week, and less than 12 hours after the analysis was printed, the gap filled to the exact price of $7,265, before the current trend resumed.”
What this effectively means is that the price followed a five-day bear trend until it bottomed at $6,850. This occurred on the eleventh birthday of Bitcoin’s Genesis block.
Some speculate that the pump that followed was caused by the US drone strike against the Iranian general. However Wareing believes this isn’t a credible reason. He says something else important happened at that time, and this was “proof of keys.”
The ‘proof of keys’ event is an annual event started by long-term Bitcoin advocate Trace Mayer, “who has been urging users to reclaim their monetary sovereignty by removing all of their Bitcoin from exchanges and controlling their own private keys.”
Wareing says, “It’s no secret that exchanges rely on volume to remain profitable, and what better way is there to entice people to send their Bitcoin back to exchanges than the price pumping by nearly 10%.”
However, it doesn’t answer the question about who is in control now: is it the bulls or the bears? The Relative Strength Index suggests we are in neutral territory at the moment, and “that we’re currently in a tight range where sellers are pretty much matched with buyers.”