The best performing asset in 2016, Bitcoin started the new year on a high note, only to witness a sudden drop in its price. For many, who are used to the cryptocurrency’s volatility, it didn’t come as a surprise. Bitcoin has had a good run, thanks to unprecedented demand, which defied the predictions of qualified analysts. The initial demand for cryptocurrency probably originated from the Asian and European countries following their economic and monetary crisis. The initial rise in demand was mostly organic as those who were looking for alternative investment options started buying into the cryptocurrency. The positive Bitcoin price rally influenced people to hold on to the digital currency for longer periods than usual, effectively reducing the…
We’ve come to the end of the week for our daily bitcoin price analysis, and it has been quite an interesting one, to say the least. After the initial sharp run we saw last Sunday (which came on the back of a previous run seen throughout the holiday period) and the follow-through heading into the middle of the week, price seemed to have had enough, and took a nose dive. The bitcoin price broke support at 1200, 1100, then 1000 – levels we had smashed through just days earlier, and fell to find what amounts to (albeit weak) support around current levels. What happens from here on out is anyone’s guess. If this author was to have a go at a near term forecast, I reckon current levels will serve to hold as support, and then we’ll see a run back up to test…
Bitcoin Price Key Highlights Bitcoin price made a sharp much-needed tumble after price hit record highs around the $1200 area. As predicted in an earlier article, that long-term resistance level is likely to inspire a lot of profit-taking that might unwind the cryptocurrency’s gains. Price is still trending higher on the daily chart, though, and bulls might be eager to hop in the climb at these bargain prices. Bitcoin price suffered a sharp crash upon hitting a strong ceiling, inspiring a major pullback that could revive bullish interest. Technical Indicators Signals The 100 SMA is safely above the longer-term 200 SMA on the daily chart so the path of least resistance for bitcoin price is still to the upside. In addition, the gap between the moving averages…
I’m tempted to stop writing these bitcoin analyses. Everything was running smoothly until I warned of a correction yesterday, and since then, things have just gone south. Well, we got a slight correction last night, some consolidation this morning, and then when we published an analysis early morning out of Europe, suggesting we may see a further decline towards the 1000 level, things started to fall again. As the chart below will show, the bitcoin price did fall towards this level, and has in fact broken it. At time of writing, we’re currently trading somewhere in the region of 980. It’s a bit disappointing from a long term holding perspective, but from an intraday perspective, ‘t’s been pretty good. Those that were with us this…
In yesterday evening’s analysis, our core focus was preparing for a large pullback on the gains we had seen across the last week or so. We surmised that the bitcoin price couldn’t just keep rising unchecked – at some point, people take profits off the table. As it turned out, when we published our evening analysis, we were only hours away from this correction. Price reached the 1300 level (which was a natural resistance level, we’ve talked about these sorts of psychologically important levels in the past), ran along sideways with that level for a while, then collapsed. Lows reached just ahead of 1050, before price bounced a bit and then consolidated into this morning’s action. To be fair, the collapse wasn’t as serious as it might have been. ON…