Bitcoin prices rose sharply today, climbing upwards of 4% in a very short period of time.
The digital currency started appreciating around 11:15 EST, increasing from $8,787.11 to an intra-day high of $9,123.34 less than 10 minutes later at roughly 11:21 EST, CoinDesk figures show.
After enjoying this rally, bitcoin has retained most of its gains, trading at $9,038.34 at the time of this writing, additional CoinDesk data reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, cited technical factors for the rapid price climb.
“The current move is a technical recovery,” he stated.
“We mentioned previously that we expect the 50-day moving average to continue acting as support, and that has allowed the price to recover temporarily.”
DiPasquale noted before that bitcoin’s 50-day moving average was roughly $8,600.
“However, the 200-day moving average is still a strong resistance at $9,200 and Bitcoin needs to surpass that level with good volumes to put $10,000 on the radar – failing to do so would keep the possibility of a return to $8,000 alive.”
Digital currency investor Marius Rupsys also spoke to technical factors, noting that bitcoin has been “trading close to 50 and 200 day moving averages.”
“Traders are quite cautious around these areas. So it might be just some traders positioning themselves before Monday.”
Rupsys and Dipasquale both emphasized bitcoin’s relatively low trading volume when explaining the cryptocurrency’s recent gains.
The “weekend has less volume, therefore price action can have more volatility,” noted Rupsys.
Dipasquale emphasized that because “volumes are low,” “price surges like this one [are] temporary and unreliable.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.