3 Reasons Bitcon's Price Suddenly Surged Back to $5K

The crypto market sprang back to life with bitcoin's surge to 4.5-month highs yesterday.

The leading cryptocurrency by market value jumped nearly $1,000 to $5,080 in a sixty-minute window early on Tuesday, confirming a transition from a bear market to a bull market.

While the bullish breakout is a welcome development following a year-long bear market, many traders are still unsure of what suddenly drove prices higher.

A big move was overdue, as bitcoin's average daily trading range had slipped to two-year lows in March.

Markets first took note of this possibility in December 2018 after the sell-off ran out of steam near $3,100.

The particular price pattern was reminiscent of how the previous bear market had ended at lows near $150 in early January 2015 - 17 months before a reward halving in August 2016.

Further, lagging indicators like the bearish crossovers of the long-term moving averages were flashing seller exhaustion.

BTC/USD short positions plunged from 20,654 BTC to 17,103 BTC between 04:00 and 06:00 UTC yesterday; later declining further to 16,978 BTC - the lowest level since March 2018.

BTC revisited yesterday's high of $4,080 earlier today.

The bullish move was accompanied by a lower high on the relative strength index.