The past two weeks has seen Bitcoin’s price value soaring to new levels since Bitcoin.com’s last price trend analysis. The fiat value per BTC came very close to this past June’s high but fell short at $778 on December 2. Since then, the cryptocurrency’s price has dipped roughly 2.3% to a low of $748 at press time. However, charts still look as though the price will continuing pushing through higher paths of resistance.
Bitcoin’s Price Climbs Closer to New Highs but Stops Short
Technical indicators have shown a correction from this past weekend’s highs, which were slightly lower than the digital currency’s record value this year. At press time an ascending pattern is forming as the price bottomed out a touch below $750 early Monday morning. The bearish dip was to be expected after the bullish run, but a bounce back seems to coming soon. Bitcoin’s downward momentum has found its floor for the time being as buyers are growing.
Looking At The Weekly View
Daily volume has been up to over $90 million, and bitcoin’s dominance has been resting at 86.8 percent. Volatility over the past week has proven profitable for intra-range strategies, while many traders are playing the breakouts and scalps. Currently across global exchanges that offer future options, most are seeing few short positions in comparison to long contracts. While volatility may keep shaking traders’ hands, long-term prospects towards $800 are still in sight. Moving averages from both the 100 SMA and 200 SMA show the uptrend may continue when looking at 4-hour and one-week charts.
Bitcoin in the News
Bitcoin’s week in the headlines has been relatively positive with mainstream media taking notice to the digital currencies recent high. Furthermore, Google Trends shows the keyword/s “Buy Bitcoin” has increased drastically this year. Alongside this, the company Blockchain just recently reported its busiest week ever. Through November 20-27th over 2 million transactions were processed and the network showed congestion. The network is processing 300,000 transactions per day in comparison to 100,000 back in 2014.
Geopolitical events have also been pushing demand for bitcoin to new highs. Worldwide economies have been experiencing turbulence in countries like Venezuela, India, and Turkey. India’s cash crisis has spurred significant bitcoin demand over the past few weeks.
Furthermore, the Italian referendum took place with close to 60 percent opting to vote “no”, implying considerable uncertainty in Italian government and banking. Prime Minister Matteo Renzi has said he will soon submit his resignation as the populace clearly didn’t agree with his resolutions. Global market hiccups like this have caused more investors worldwide to seek solace using bitcoin as a safe haven.
So What’s the Verdict?
As stated above, even though a slight correction took place last night, indicators still suggest a price uptrend. $800 USD is still attainable as buyers are eating through sell orders and resistance at press time. Additionally, LocalBitcoins volumes have been reaching all-time highs in nearly every nation. Prices on LocalBitcoins show $50-100 USD spreads in comparison to the average global exchange rate as well.
Bear Scenario: At the time of writing term support seems to be holding at the $750 range and forming to move upwards again. However, if a bearish trend pattern continues, we will see prices drop back to the $720 range but looks highly unlikely.
Bull Scenario: Currently the price is already consolidating higher reaching $752, and buying is steadily increasing looking at the depth and order books. Attaining this year’s high price position once again or even higher seems probable according to technical indicators. The heaviest resistance in sight is in the $820 range, but of course, things may still be volatile along the way.
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.
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