Since our last markets update bitcoin’s fiat value dipped 30 percent throughout the second week of June. Following the correction, the price of bitcoin started moving back up on June 16th taking 15 percent off the previous day’s downfall. The price has been moving up the ladder ever since and is testing the $2780 range at the time of writing.
Also Read: Forbes Encourages Readers to Buy Bitcoin at All-Time Highs
Bitcoin’s Value Has Started to Ascend to Higher Levels Once Again
Over the past few days, the price of bitcoin has once again started rallying after a steep dip down to the $2100 mark. Market volumes have been phenomenally strong with a massive $1.7 billion in daily trade volume. Bitcoin’s market dominance hit an all time low a few days ago touching 36 percent, but since the price has started ticking upwards, market dominance has also rebounded to 39 percent. As the price of BTC has been rising, this time around Ethereum isn’t following bitcoin’s lead and is currently down 5 percent.
Technical Indicators
On June 20th bitcoin’s value spiked quite a bit from the day prior’s $2575 price to a high of $2783. According to technical indicators, the 100 Simple Moving Average (SMA) is now above the long-term 200 SMA, showing a bullish comeback. However, the gap between the two SMA levels is not as wide as the past run-ups in price. Stochastic shows we still may see some sell offs in the future, but the Relative Strength Index (RSI) indicates some solid buy pressure is currently in motion. Order books across a few popular exchanges are currently showing strong resistance above the $2900-3000 range. We skipped breaching a head and shoulders formation, and it seems we may be in the clear from a bearish downtrend for the time being.
Bitcoin News and Community Sentiment
Overall markets have been a little more positive after the decline last week. Some bitcoin proponents have attributed the spike to the New York agreement which seems to be gaining some headway. On June 19th 70 percent of the network hashrate signaled their support for Segwit2x by placing “NYA” into their blocks. Although the compromise has seen a lot of support, it’s still not certain Segwit2x will activate in the future. On the flipside, mainstream media is still reporting on bitcoin markets and demand nearly every day. However, some news headlines have been a touch dreary with talks of increased regulatory action from governments all around the world adding a degree of uncertainty.
The Verdict
At the moment bitcoin is grinding steadily upwards and slowly approaching the $2800 range. It’s entirely possible the price could test above $3000 this time around if enough steam and buy pressure is built up. For now, it looks like there is substantial support between the $2500-2600 territory. If the price follows the consistent pattern, like it has over the past few months retracing back 20-30 percent, and followed by a higher run-up in price, the value may exceed the last all-time high in the near future.
Bear Scenario: If the price breaks current support we could see a drop back into the $2500-2600 range. At the moment there is significant consolidation happening, but things could shift at any time. The price is still volatile and should make for some good profits for intra-range players. Stochastic trends continue to indicate the price may be in a overbought zone which could lead to some bearish slide backs.
Bull Scenario: Bitcoin’s price has come very close to reaching $2800 on June 20th. Bulls are charging, and the buyer’s market looks like it should continue in the short term. It’s going to take some hefty buy pressure to surpass the $3000 sell walls, but at current momentum, it still seems very possible. The 100 SMA and longer term 200 SMA gap continue to widen showing dynamic buy pressure will continue over the next 12 hours.
What do you think about the price of bitcoin right now? Do you think bitcoin will continue to rise to higher levels? Or do you expect bears to lower the price further shortly? Let us know in the comments below.
Disclaimer: Bitcoin price articles and markets updates 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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