As we predicted in our last markets update, bitcoin markets were behaving like a shaken can of soda — waiting to pop. The bitcoin price rocket started its ascent yesterday surpassing the $4,500 zone. Then the price of bitcoin blasted to a high of $4,865 just 24-hours later on October 9. As the fork(s) loom in the backdrop, many people are speculating that altcoins are being sold off for BTC so people can get in on capturing split tokens.
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Bitcoin’s Price and Trade Volume Surge
During the early morning hours of October 9, the price of bitcoin gradually lifted to the $4,650 range. However, the price train didn’t stop there as bitcoin’s value kept rising, reaching a high of $4,865 across global exchanges. Bitcoin trade volume has increased significantly since our last report reaching close to $2B in 24-hour trade volume. The decentralized currency’s price has wholly shaken off the 30 percent dip that took place during the first week of September. The top five exchanges pushing significant volume this week include Bitfinex, Bithumb, Bitflyer, Hitbtc, and the GDAX trading platform. Presently, these five exchanges are currently capturing roughly $544M in bitcoin trade volume.
Technical Analysis
At the time of writing one bitcoin holds an average of $4,790 per BTC across multiple exchanges throughout the world. Currently, technical indicators show the 100 Simple Moving Average (SMA) has risen well above the long-term 200 SMA indicating the market is indeed very bullish. Order books show a massive sell wall at the $5K zone, and there may be some sell-off if the price reaches this height. If the price can manage to surpass the $5K territory, then we may see some more smooth sailing upwards. Stochastic has finally turned north alongside the Relative Strength Indicator (RSI) confirming buyers have the reigns. Looking at the Fibonacci extension (Golden Ratio) at 61.8 percent shows the climb could reach an all-time high of $5,200 and higher. If the price gets choppy along the way and settles back, prices could easily fall back to the $4,400 range.
Overall Cryptocurrency Market Sentiment
Market sentiment seems very optimistic even with the two possible forks coming in the near future. Altcoin markets, on the other hand, have seen better days as nearly every alternative cryptocurrency had dipped a touch before catching some of bitcoin’s positive rally around 5 pm EDT. Speculators believe over the course of the next few weeks traders will be dumping altcoins to get in on the upcoming blockchain split so they can accumulate the forked currencies. At press time the price per ethereum is $295, ripple $0.25, bitcoin cash $300, litecoin $50, dash $285, NEM $0.20, NEO $28, Monero $85, and IOTA $0.45.
The Verdict
Overall besides the scaling drama and the upcoming fork(s), most crypto-enthusiasts are still in high spirits. Lots of things are happening with bitcoin across the globe as the currency is trending in Japan, Russia, South Korea, and many more countries worldwide. There has been increased regulatory action from many nation-states, but officials are slowly starting to realize how powerless they are trying to deter bitcoin growth.
Bear Scenario: The price of bitcoin could hit some resistance and pull downwards from here. There’s a substantial floor between the $4,300-4,400 zone at press time. It would take a considerable sell-off to continue dropping below these price points, but if it does fall to $4,300 and the Stochastic and RSI is heading south, we could see a flat $4K range again or lower.
Bull Scenario: The price of bitcoin at this vantage point could easily crossover past the $5K zone. Fibonacci extensions show we could reach heights between the $5,200 through $5,800 territories. Currently, its a buyers market and it doesn’t seem like it will slow up for the next 12-hours unless something unexpected happens intermittently.
Where do you see the price of bitcoin heading from here? 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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