The tip of Bitcoin bets on the account of an April fish joke – but that's not why it's rallied

Bitcoin was not immune to the jokes of the April fish.

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According to another rumor, Warren Buffett, CEO of Berkshire Hathaway – one of Bitcoin's most virulent critics – was diversifying into the asset class. As Brian Kelly, founder and CEO of BKCM, says, "there is no way," that's the reason.

A more realistic possibility is that bitcoin reaches a key technical level, he said. Kelly announced a key price level of $ 4,200, which triggered a trade stop. In bitcoin and other assets, traders often set a certain level to automatically cover their short. It could also indicate that fundamentals are improving and that bitcoin is running out of sellers, according to Kelly.

"Everyone who has panicked and sold is out," Kelly told CNBC on Tuesday.

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Arca Funds' CIO, Jeff Dorman, a former Lehman negotiator, Merrill, Citadel, said that even if trading-by-trading algorithms triggered euphoria, they would quickly be reversed if investors were eager to to sell. Instead, the rally propelled bitcoin to its highest level since November. This rally was caused by a "mere" imbalance of more sellers than buyers, he said.

"The sheer scale of crypto moves makes the story more interesting, but it's not so different from any other asset class," said Dorman. "Buyers outperformed sellers, and market makers felt the pressure and pushed their markets higher, triggering a halt in losses and liquidations, which added more pressure to the market. purchase."

Bitcoin prices had a relatively quiet year in 2019 after a year of volatility. Cryptocurrency fell by about 75 percent last year, after peaking at nearly $ 20,000 by the end of 2017. It has not yet regained record levels since and traded close to $ 4,728 on Tuesday afternoon.

Dorman said some investors may consider returning.

"The fact that every peck has been bought immediately in the last few weeks shows that investors are not afraid of disposals, they hope they can buy more," he said. "This certainly raises the floor in the short term, but this feeling can also change at one go.