Bitcoin witnessed high volatility and turmoil earlier this week, after the rapid decline of more than 3000 dollars, the price of bitcoin rebounded from 16,800 dollars recorded yesterday to 17,760 dollars at the time of writing this article.

In the past days, it was expected that the Bitcoin currency would break its highest level ever, but instead it fell and fell to 16,800 dollars, due to several reasons, which we discussed in an article entitled:

Six Possible Reasons Why Bitcoin Price Crashed Nearly $3000

Bitcoin Analysts Explain Why Bitcoin Price Is Rising:

Jason Dean, Bitcoin Analyst at Quantum Economics, said about the recent Bitcoin movement:

Absolutely rising is a huge psychological barrier, breaking it requires real momentum.

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What is good for bitcoin tends to be good for altcoins as well, as the Ripple price has crossed $0.60 at the moment, and the stellar currency has surged earlier this week, with the price up almost 100% over the past days.

On November 23, Ripple crossed $0.50 for the first time since 2018.

As for why bitcoin is soaring, Eric Wall, chief investment officer at crypto investment firm Arcane Assets, says:

It is very common for Bitcoin to struggle to break past a previous record high, and experience a pullback instead.

Wall attributes the recent rise in the price of bitcoin to market psychology, rather than events such as the recent OKEx re-withdrawal, or the expiration of about $1.3 billion in bitcoin options, and adds:

Withdrawals on the OKex platform have been pent-up since the time of their suspension.

With regard to the expiration of Bitcoin options contracts, it is unusual for them to have sudden effects on the market or a lasting effect, if they conflict with the broader sentiment it is always absorbed by the market.

He added:

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Given that the bullish catalysts that drove us so far are still largely in place and still in action, it is only a matter of time until the temporary selling pressure subsides and we continue our bullish run.

While Dmitry Ushakov, CEO of the Russian mining services company BitRiver, sees the short-term rise may reflect the acceptance of Bitcoin at the institutional level, telling Source By saying:

Today’s rally and Bitcoin’s price rally may be part of a larger price rally.

More and more institutions recognize cryptocurrencies as a trusted store of value and a medium of exchange.

Analysts considered the sudden rise this year of large-scale investment from MicroStrategy, a technology company that invested $425 million in bitcoin in August and September, and Square, the digital payment service founded by Twitter founder Jack Dorsey, which also invested $50 million. dollars in bitcoin last october.

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Since then, the price of bitcoin has nearly doubled.

It seems that the boom started by these companies is still going on.

Overall, the price of Bitcoin started 2020 around $7,000, the price dropped to $4,000 in March, and it has been steadily rising again since then, with momentum gaining significantly over the past few weeks.

If the price continues like this, this week’s drop is likely to be just the usual Bitcoin volatility.

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