The price of bitcoin has hit a new all-time high once again as the digital currency has reached an average of $1950 across global exchanges. If bitcoin breaks the $2K range the price will have doubled since the beginning of the new year. Moreover, 2017 has shown digital assets, in general, have seen significant gains which has created a remarkably large cryptocurrency market capitalization of over $66 billion.
All Aboard the Bitcoin Train to $2K
Cryptocurrency trading volumes and digital asset values have been on a tear since the beginning of 2017. Right now all 700+ cryptocurrencies command a $66 billion market capitalization with bitcoin capturing 48 percent of that share. During the first week of January bitcoin crossed the 4-digit price territory at $1,000 per BTC, and now four months later one bitcoin is worth $1950. Bitcoin trade volumes across global exchanges have been trading at close to $1B worth of BTC trades per day. 24-hour volume statistics for all cryptocurrencies have been roughly $2.1 billion traded on a daily basis.
Weekly View Sees New Traders and Massive Volumes
Trade volumes on all exchanges have been growing exponentially as trading platforms like Coinbase, Kraken, Shapeshift, and Poloniex are reporting a heavier influx of daily transactions. For instance, Coinbase has reached 7 million users adding over 100,000 new registrants every week. Bitcoin charts and technical indicators suggest the rise should continue into the $2,000 range, but at the moment there are significant sell walls in that price territory. A price of 2K should be expected to be very psychological, and an immediate sell-off could ensue after it successfully reaches that point.
The 100 Simple Moving Average (SMA) is still well above the longer term 200 SMA which shows buyers are not yet exhausted. Both the Stochastic and Relative Strength Index (RSI) indicators are showing overbought conditions, but they’ve been indicating this for a while now. As stated above order books across the most popular global exchanges show a high of 2K will likely happen, but it may not last long.
Increased Mainstream Bitcoin Price Headlines and the Ongoing Scaling Debate
Bitcoin news has been very positive as mainstream media has printed a lot of headlines covering the decentralized currency’s performance. For instance, a recent CNBC article says bitcoin offers “portfolio protection” for people with investments and other publications are expressing the same sentiment. The recent ‘Wannacry’ ransomware seemed to shed a negative light towards BTC, but most of the blame has been pointed at the NSA and the agencies backdoor corruption.
Meanwhile, bitcoin proponents have been celebrating the new highs but also tension has risen as the network has grown more congested and transactions now have much higher fees. The scaling debate seems to be escalating at the same rate as bitcoin’s fiat value rises. Lately, a lot of the scaling discussions have also shown people are trying very hard to find that one solution that will temporarily fix transaction throughput and maybe even willing to compromise. One forum comment expressed an interesting statement towards how some people feel about a compromise at this time;
To hell with all this us versus them BS. No matter which solution is chosen, it will require this crazy thing called CONSENSUS, so by vilifying people who disagree with you — kills your chances.
At the current rate of bitcoin’s value accumulation and the price approaching $2000, no one knows what to expect. There are those who feel nothing can go wrong as the bitcoin price train continue to chug upwards. Then there are those who are uneasy with the price being so high with the many unknowns facing bitcoin’s future. There are currently three main concerns at the moment for most bitcoin enthusiasts; the scaling dilemma, some exchanges have suspended withdrawals and the ever looming possibility of government interference. However watching bitcoin continue to gain value has caused a lot of excitement and exuberance as many hodlers have waited a long time to celebrate these milestones.
Bear Scenario: At press time there is a seemingly solid floor in the $1800-1850 price territory if the price starts to slide, but a significant dip could easily break this ground. Bitcoin’s price is higher than it’s ever been and $2000 per BTC is a very psychological price point which could lead to some turbulence and bear traps. There have been plenty of dips and shorts over the past few weeks, and intra-range traders will likely continue to enjoy bitcoin’s volatility.
Bull Scenario: Bitcoin’s current trajectory looks like it’s going to break the $2000 mark. If it breaks this resistance, the possibility of it going higher is probable, but many traders are vocally stating they expect an immediate sell-off. The $2000 per BTC price range looks as though it may happen in the short term and likely over the course of the weekend if momentum stays the same. At this current moment in time bulls are charging relentlessly and buyers don’t seem to be getting tired.
What do you think about the price of bitcoin breaking $2K? Do you think bitcoin will continue to rise? Let us know in the comments below.
Disclaimer: Bitcoin price articles and markets updates 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.”
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