The price of bitcoin has been steadily riding up the ascending channel pattern over the past week. Over the course of the early morning on October 11, the cryptocurrency’s value has finally had a breakout, trending upwards to a high of $636 USD.
Bitcoin Price Trends Upward, Puts the Pedal to the Metal
Last month, Bitcoin.com’s detailed analysis had shown a slight upward trend in value. The price moved ever so slowly until September 25, where it broke the $600 range to price points between $612-616. Fibonacci extensions suggested another advance with slowdowns in the $620-630 range, which is where we are now.
At press time, the price has met resistance, but higher values could appear shortly, as the market looks quite bullish. Technical indicators show the 100 SMA is above and that upside movement may move faster than expected. However, other indicators, such as the Stochastic, suggest that the bull run may correct slightly in the next 48 hours.
Last week saw Bitcoin’s price trending upwards like the “little engine that could.” Trendlines had shown observers that a breakout was imminent, and many reports believed the price would push up.
Intra-range strategies were lighter than usual last week, with only small bumps up and down in value. However, there was still money to be made in the intra-range within a few dollars, and day traders are not complaining.
Bitcoin dominance has remained above 80 percent, and daily volume has been close to $90 million USD in trades.
In The News
News has been positive in the cryptocurrency industry for quite some time. Since our last report, many optimistic headlines have created an atmosphere of positivity in the space.
Additionally, a lot of capital injection has gone into Bitcoin companies last month, bolstering the crypto-environment. For instance, the Indian Bitcoin exchange Unocoin had secured $1.5M in funding. Furthermore, on the same day, the Mexican exchange Bitso raised $2.5M for expansion.
While the news lately has been positive, there has been nothing significant enough to cause the upwards price bump.
Technical indicators on the weekly candle chart show a continued push in an upwards pattern. Many other analysis reports believe the bull market is here to stay for a few months unless something unexpected happens. Long-term could see price values reach the $650 range after the current resistance breaks and could be possible over the next 24 hours.
Buying continues and feverishly in China as other global markets pale in comparison to this country’s trading volume. If the price begins to correct, there is significant support in the $615-620 range.
Bear scenario: Term support could drop to the $610 range if bears claw at the price and high amounts of selling take place. If the value falters key trend lines shorting should stall in this price range. However, the 24-hour chart shows enough support around $615-620 as said above.
Bull scenario: Weekly charts have been suggesting an upwards breakout for quite some time. The value looks as though it will continue to coast up the ascending channel pattern. If we break the current resistance of $635, prices in the range of $650-660 are not far from sight.
Disclaimer: Bitcoin price articles are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the Author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the money.
What do you think about Bitcoin’s price trends at the moment? Do you see the bullish rise continuing? Let us know in the comments below.
Images via Shutterstock, ZeroBlock, and Kaiko Charts
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