By Joseph Young
On May 12, Bitcoin price dropped from around $1,815 to $1,600 in a 24-hour period, recording a nearly 12 percent overnight decline. Since then, Bitcoin price has recovered relatively quickly and is back in the $1,740 region.
Bitcoin price has maintained its upward trend and momentum for seven straight days, reaching new all-time highs almost on a daily basis. From May 5 to May 12, Bitcoin price increased from $1,500 to $1,850, demonstrating a $350 weekly increase in value.
However, in the evening of May 12, Bitcoin price plunged, dropping by 12 percent.
In some markets, Bitcoin price entered the $1,500 region, sparking concerns of investors whether Bitcoin’s short-term price surge can be justified and sustained.
So far, Bitcoin has shown resilience towards the market and has already started to recover rapidly. Bitcoin price started to show some momentum in moving average convergence divergence (MACD) earlier today and within a few hours, Bitcoin re-entered the $1,700 region.
Currently, Bitcoin price is showing strong momentum and is holding strong at $1,730 across major Bitcoin exchange markets. As it did throughout the past few weeks, the Japanese Bitcoin exchange market, which holds 49 percent of the global Bitcoin exchange market share, is leading the upward momentum of Bitcoin price and is processing Bitcoin trades at around $1,800.
Newly established momentum
Bitcoin price gained more in a 12-day period from May 1 to May 12 than it did throughout a four-month period from January to April. Therefore, investors and traders in the global Bitcoin exchange market were expecting a correction in Bitcoin price, considering its recent steep and unexpected surge.
Although Cointelegraph explained in a series of articles that the rise in institutional investors and the explosive growth of the Japanese Bitcoin exchange had a massive impact on Bitcoin’s mid-term price trend, the market had to stabilize after an intense and strong rally.
Moving forward, Bitcoin price is likely to resume its rally again after its initial correction in value. On May 10, Cointelegraph reported that Japanese Bitcoin exchanges, which are dominating the global Bitcoin market, clarified the allegations of “fee” and “no-fee” trading.
At the time, Yuzo Kano, the CEO of bitFlyer, the world’s largest Bitcoin exchange which controls over 67 percent of the Japanese Bitcoin exchange market share, stated:
“We charge trading fees for BTC and ‘swap point’ for FX. So it’s a different situation from China before this January. We are seeing funds inflowing not only to BTC but also all crypto markets.”
If Bitcoin price successfully maintains its newly secured momentum and major markets including the Japanese Bitcoin exchange market sustain their explosive growth, Bitcoin price will likely position itself for another rally.