The price of bitcoin has surged past $5,000 USD today, establishing a new all-time high. The major milestone comprises a complete reversal of the approximately 40 percent drop triggered by China’s cryptocurrency crackdown last month.
The Price of Bitcoin Established a New All-Time High of $5219.1 USD at Bitfinex This Morning
The major price level of $5,000 has been emphatically broken this morning, as prices surged from $4,900 to over $5,200 in just two hours. At the time of writing, prices appear to be consolidating above the prior resistance of approximately $5,000 USD.
The new high comes just thirty days after bouncing off the recent low of approximately $3,000 USD that was established following announcements of China’s recent crackdown on cryptocurrency exchanges. Despite the ensuing fear, uncertainty, and doubt that resulted from the sudden exit of major Chinese cryptocurrency exchanges from the bitcoin markets, bitcoin was able to make a strong recovery after bouncing off the major support area at $3,000 USD. The surge past $5,000 has left the 3-day stochastic RSI poised to cross the 80 threshold for the second time since August.
Changing Market Dynamics
Following the closure of several major Chinese bitcoin exchanges, Japanese trading volume has come to comprise approximately 60 percent of all bitcoin trading volume. The rise to dominance of the Japanese markets has largely displaced fears that China’s cryptocurrency crackdown signified the end of bitcoin’s bullish trajectory heading into the end of 2017.
The new all-time high has been established despite concerns from parts of the bitcoin community relating to the Segwit2x hardfork which is expected to take place in November. The current price action brings bitcoin’s gains for 2017 well in excess of 400%. As such, 2017 is currently bitcoin’s best performing year since 2013.
Do you think that the current bull trend will be affected when the Segwit2x hard fork takes place? Share your thoughts in the comments section below!
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