Over the course of October Bitcoin’s price has been on a tear, rising in value. In the first week, Bitcoin.com predicted bullish indicators as the price ramped up to $630 USD per BTC at the time. Now the value of the cryptocurrency is slowly edging towards the $700 mark and was battling resistance at $690 at press time.
Bitcoin’s Bullish Value Has Kept Momentum
The value of Bitcoin has continued to climb, breaking an array of price points all week long. Technical indicators show the bull run will continue with trend lines showing no signs of immediate correction. Volume is high, and both the 100 Simple Moving Average (SMA) and 200 SMA show little resistance against the bullish pressure. Bitcoin dominance is up at 82.6 percent with over $78 million in 24-hour trading volume.
Looking at the Weekly View
Over the past three days, there has been some volatility, and there is plenty of room for intra-range day-trading. A few days ago saw the price vary between $685 to a low of $675. Fibonacci trend lines suggest the price rise looks to move forward and we could see the $725-750 range by next week if momentum keeps going.
If a pullback happens, deeper corrections look to stall at the $675 price range. However, the moving average shows no signs of a drawback at the present time. The Stochastic indicator shows buying pressure is healthy for the time being, and bearish downturns will be more likely when the value is above $700 price ranges.
Bitcoin’s in the News Again
News has been largely optimistic the past few weeks, with many announcements and Bitcoin companies receiving capital injections. Bitpay has initiated a deal with WeFunder so the investment platform can accept Bitcoin. Alongside this news, the firm has also added Intel grade software into the company’s Copay wallet platform.
The financial consultancy firm Needham & Company also recently revised its Bitcoin value projections for Q4 of 2016. Needham Analyst Spencer Bogart detailed that the rise is due to adoption growing increasingly faster, with code improvements on the horizon. One factor on the way is the integration of SegWit into the Bitcoin 0.13.1 protocol. On November 15, miners will be able to signal whether or not they agree with the soft fork.
On top of this, the community seems to be positive towards the rally. Investor Barry Silbert recently explained ten reasons why he thinks Bitcoin will grow stronger. Furthermore, MGT Capital Investments John McAfee aims to bring more Bitcoin mining operations to the U.S. with Bitmain as a partner. Overall, the industry and community have been very positive. However, on October 25-26 a lot of people had significant issues with confirmation times over the network. The issue has again sparked a heated debate about the block size and possible solutions.
So What’s the Verdict?
The weekly and 24-hour candle charts show a continued bull run with little resistance. A lot of people are pointing to China and the continued downward spiral of the Chinese yuan. Chinese Bitcoin trading has definitely ignited a flame and continues to strengthen. Long-term projections could very well top the $750 range by next week.
Bear scenario: Term support could find a floor at $665-675 if a correction takes place. If the price is currently overbought (which technical indicators say it is not) then the price should see a downturn over the next day or so.
Bull scenario: If buy pressure continues the price should easily break into the $725-750 range. The ascending channel pattern shows a little resistance at the $700 range at present, but the buying volume continues to eat through the order books. As the charts indicate, the bullish run doesn’t seem to be slowing up anytime soon.
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 current price trends at the moment? Let us know in the comments below.
Images via Crypto-Graphics.com, ZeroBlock, and Kaiko Charts
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