The price of bitcoin has been trending upwards this past week, giving a bullish sentiment to traders. The price per BTC is $584 USD at press time, and it looks as though we may see more spikes.
Bitcoin Price Moves Away From the Bears’ Grasp
Bitcoin has seen some significant demand over the last week, moving past the downward trend that began two weeks ago. Buyers returned to the market at the end of last week’s trading sessions, running past overbought trendlines. The 100 SMA and Stochastic show resistance in the $600 range and strong support in the $575 area. If the price breaks the $600 mark, we will most likely see a sharp uptrend towards higher positions.
Weekly View
The entire week shows higher volumes and significant buying taking place. The weekly candlesticks show stability for the time being, and a breakout approaching soon — possibly above term resistance.
If the defined break happens, we will get into a long position above the $600 range, adding more intra-range strategies. Currently, indicators from the Fibonacci trendlines on the 24-hour chart seem to suggest an immediate upside target with significant congestion points in the $650-700 range.
In the News
There are some headlines that may bring the price upwards and away from bearish traders testing short gains.
This week, Bitfinex updated its customers concerning its investigation into the recent hack, which resulted in the loss of of 119,756 bitcoins. The exchange says they are still working with forensic teams, auditors and law enforcement to identify the thief and possibly recover the coins. Additionally, the exchange addressed the BFX token payback solution, explaining that they are doing everything they can to make their customers whole. This news may have given markets optimism; last week, Bitfinex topped the list of USD/BTC exchanges once again.
More positivity comes with the recent dropping of the California BitLicense Bill AB-1326. Lawmakers decided to put the Bill on hold for the rest of the year and plan on revisiting the regulatory policy in 2017.
Bitcoin supporters thought the Bill was outrageous, and possibly worse than the New York Bitlicense due to its substantial fees and background checks for startups. Bitcoin proponent Andreas Antonopoulos was pleased after regulators announced the Bill’s suspension, stating over Twitter:
Jerry Brito, Hey good news! Almost fucked up the 8th largest economy in the world for cryptos, but pheewwww, dodged it at the last moment.
The Verdict
These market indicators suggest the bitcoin price will see an upward trajectory as long as buying, demand and optimism stay consistent. The community and recent positive headlines show this may be the case over the next couple weeks.
Additionally, the UK authorities may ramp up Article 50 discussions which may push more demand towards Bitcoin markets.
China is also clamping down harder on capital controls, which may drive more buying as well.
Also on the upside is the Bitcoin mining hashrate, which is reaching new ranges at 1,706,022,091 GH/s at press time.
Bear scenario: If the uptrend hits significant resistance and bears pull the price downward, we can see support hovering in the $560-575 with short-term profit taking in the intra-range.
Bull scenario: Charts suggest a bull charge will break out soon, but we will see congestion throughout a few price points, including the $600, $650, and $700 range.
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.