On 9th February, Bitcoin surged past $10,000 for a short time. Some think this was caused by market manipulation, while others think it was down to technical factors, but ultimately, according to Cointelegraph, there are three basic reasons it rallied so strongly since the end of December.
1. There has been an accumulation of Bitcoin since 28th December when the leading crypto hovered around $7,200. Three Arrows Capital CEO, Su Zhu, said: “BTC/USDT premiums and price action show clear signs of accumulation and money flow back into risk. Would not surprise me to see 9K+ before the end of Jan.” Furthermore, the gradual accumulation heading into 2020 was expected to be dominated by the narrative around the scheduled Bitcoin reward halving set to occur in May, and this helped establish a strong foundation for an extended rally.
2. Whale manipulation? Bitcoin whale Joe007 has consistently said that the rally is manipulated by fake buy walls and spoof orders. When it hit $10,000, he wrote: “I’m all in for a good old BTC parabolic, but I’d like to cash out in the end. But it’s not possible if the price is pumped up by overleveraged players in the face of low liquidity and weak fiat inflow.” His argument is is that the recent upsurge was triggered by other whales placing spoof orders across margin trading platforms to inorganically pump the price of Bitcoin up.
3. There’s an increase in on-chain investor activity. Willy Woo, of Adaptive Capital, who charts Bitcoin’s progress said that the chance of $10,000 being the top is basically zero. And he has a graph to prove it, showing the price of Bitcoin alongside on-chain investor activity.
Ultimately, it is probably a combination of all three factors. As Cointelegraph said, “While Bitcoin’s price is currently hovering at around $10,100, technical indicators do not show overbought conditions nor signs of a local top, which could allow BTC to move up further before it pulls back.