While the bulls are cheering the recent upswing, a research note from JP Morgan states that this current rally “carries echoes of late-2017”. While we are also surprised with the pace of the rally, to term it similar to the late-2017 rally is incorrect. Usually, the first leg of the up move from the lows is strong and more so because the digital currency had been in a long and crushing bear market.
On May 17, Bitcoin plunged about 20% within 15 minutes on the Bitstamp exchange as a large sell order was executed. However, the positive thing is that the flash crash was limited to one exchange only and the recovery has been quite sharp. This shows a lot of demand at lower levels. So, will the rally resume now? Let’s find out.