From technical view point, it was long due for Bitcoin to reach 5400 level. Just try to recall that 5400-5500 band was the strongest support all throughout 2017-18 and later in late 2018 this support level was broken and then price of bitcoin all way visited 3100-3300 level which is a multi year support level. If you look at the bigger time frame it gives very clear picture and the smaller time frames are bit noisy and confusing.
Further Bitcoin's recent appreciation was part of the seasonal and cyclic transformation. You must note that the price action of any asset fluctuates from support to resistance and those support and resistances are defined by fundamental and technical parameters. As bitcoin tradecd ultra bearish in late 2018 and also in Jan 2018, there was enough sign of consolidation. The first sign was that it did not make any further new low, that means somehow price of bitcoin found a support, so that was an indication that price will either jump from here or will consolidate. The RSI and oscillators were all at oversold reading. You must note that whenever the RSI hits an oversold reading then the price will try to correct to bring it back to a normal level. So from that point of view also, it was long due. Third aspect is that the confluence of moving averages are well indicative of a decent bounce and that happened thereafter. Now the 200 day moving average exactly coincides with 5400 level in the weekly chart and that is an indication that it will be a tough resistance for bitcoin, so from here again some consolidation and retracement back to 4000 level is possible.
Further I am of the opinion that price action and trading cycles goes through transformations for every asset class and the market gets matured naturally by that force and whenever some extreme bullish condition happens it equally warns of a bearish pattern or corrective pattern and vice versa. I think Bitcoin is going through such transformations right now and this recent appreciation of Bitcoin is just a result of that.
Disclaimer- This is not an investment advice.
What is the reason for the price of BITCOIN to rise 20% and reach $ 5000 + in this month? Currently the price of bitcoin has gone up 40% from the price in the previous month, I think that this is one sign that in the future this bitcoin price will continue to increase until it reaches the highest price of this bitcoin. Even some great traders predict that the price of this bitcoin will touch the 70000 USD per coin in 2025 but this is a fantastic price not for a novice trader like me. Currently I am also trading several coins to become my future asset in cryptocurrency.
I am sure that in the near future the price of bitcoin will continue to crawl up along with other coin increases which are also rising in price, many traders who have been trading when the prices of cheap bitcoins now feel the results of their bitcoin trading. And now, we also can still trade with bitcoin because the increase of the price of bitcoin itself has not reached 100% so that it can still make you to reap the benefits of the trading process that you will do. If you do not want to trade with bitcoin then you can do it with other coins that you believe can gain a lot of profit for yourself.
The impact of bitcoin also has an impact on other crypto, if the price of bitcoin rises as it is today, other coins will also increase as the bitcoin price rises. Until now, bitcoin has increased to 40%, which means that it does not rule out the possibility of altcoin prices will also go up even up to 100% of the previous price. We can use mementum from the increase in prices of bitcoin to continue to invest in several altcoins that you believe can gain a lot of profit for you in the future and even many times the profits you will get will increase the price of the coin.