The price of bitcoin finally crossed the $1,000 USD range reaching a three-year all time high. At press time the current price per BTC is $1,130, and the past 24 hours of trading has been volatile. Since the 4-digit price break the digital asset has dipped slightly below $1,000 twice so far, but technical indicators suggest bitcoin’s ascending channel shows a continued upward push.
Bitcoin’s Price Once Again Breaks the $1,000 Mark
The fiat value of bitcoin climbed to a position it hasn’t seen in three years on the first day of the new year. The price has steadily hovered in the $1010-1030 range over the course of the past 24-hours. Then on January 4 the price shot forward to above $1100 per BTC. Candlestick charts show the bullish uptrend may continue after pushing through certain resistance levels. Currently, bitcoin’s volume of over $294 million is very high, and the digital assets’ crypto-currency dominance level, which measures a digital currency’s performance in relation to other coins, is approaching 90 percent. However, the psychological aspect of reaching the 4-digit range is making the ride along the way quite bumpy.
One week charts show a bullish formation, as well, with the price edging towards the $1120-1150 marks. If the price corrects, there’s a strong floor in the $1000 range and its doesn’t look as though bears could pull it down lower than that. As usual, during these shaky times, it’s a great opportunity for day traders and intra-range strategies. Buying levels could fade a touch as Stochastic variables suggest the value may be overbought. Nonetheless the 100 and 200 Simple Moving Average (SMA) suggest the uptrend may see $1200 in the near future.
Bitcoin In The News
Mainstream media was awfully quiet when the price broke 4-digits, but that may have been due to light work schedules over the New Year holiday. There have been headlines from the BBC, the Guardian, and a couple of others but not as many stories as there were in 2013. Nonetheless, the Netherlands mainstream newspaper de Volkskrant covered the subject in great detail. U.S. media has been covering bitcoin’s price performance but definitely way less than before. Of course, cryptocurrency and blockchain-centric news outlets have been all over the story. Even though it’s not as chaotic during this particular bitcoin bull run, media over the past two weeks has been pleasantly positive, to say the least.
Some of the biggest stories of the year that affected bitcoin’s high demand were headlines about economic turbulence throughout the globe. Brexit set off one of the first big prices pushes of the year alongside capital controls, hyperinflation, and devalued currencies. Tales from India, China, and Latin American were abundant this year, and many speculate a vast portion of these citizens have turned to bitcoin. Another factor that has set in was this summer’s reward halving and the mining of the 16 millionth bitcoin. The fact that the digital currency is becoming more scarce has increased its worth in the long run.
So What’s the Verdict?
Bitcoin’s current resistance is in the $1140-1150 range at press time with a global spot price average of $1125. Of course, the $1200 mark and higher is attainable, but there will be some stops along the way if upward momentum keeps up. Another psychological moment will be when the price outperforms the value of one troy ounce of .999 gold. Bitcoin’s high price can be scary to some as many are expecting a bubble burst or deeper correction. A bearish trend could happen if something triggers a shake up, like an unfortunate event for example.
Bear Scenario: Bitcoin is holding steady above $1100 USD per BTC at the moment. As abovementioned, this number is extremely psychological, and there could be a downturn. Floors suggest a correction no lower than $1000, looking at current depth and order books. A few bear traps should be expected in the near future.
Bull Scenario: Technical indicators show that the pressure upwards will continue for the time being. Strategically the price looks to be headed north at ranges in between $1150-1200. Fibonacci trend lines suggest the bull run is headed towards parity with the gold ounce shortly. Economic events from China like yuan devaluation, confidence in the U.S. federal reserve, and failing Latin American economies will likely keep the ascending momentum going.