Bitcoin Shifts Around Before Settling Above $16K Again

The bitcoin price shot past the $16,000 level a couple days ago. It has since added more than $200 to its price, and it looks like many analysts are convinced that $20,000 – the asset’s all-time high initially achieved in December of 2017 – could be struck again prior to the end of the year.

Bitcoin Has Moved Around a Bit in the Last Few Days

However, it looks like the bitcoin price may have gone through some up and down motions before finally recovering and trading for what it presently sits at. The currency rose to $16,200 but then fell back down to $15,600 briefly. From there, it shot back up to $15,900 before finally settling back above the $16,000 mark.

This suggests that the move is not a fluke, and that the currency is potentially experiencing a small taste of resistance here and there. However, the asset is proving its strength and resilience and is not allowing the drops to be permanent. The currency has moved forward into the $16,000 range and for the most part, it is staying there.

Denis Vinokourov – head of research for the London-based digital currency enterprise Bequant – explained in a recent interview:

There is some congestion between the $16,170 and $17,150 zone (based off price action in 2017 and 2018), but ultimately, markets, are looking to test all-time highs, and resistance before that looks futile, based on the current risk-on sentiment. While the upside may have slowed somewhat, the ongoing rise in futures open interest, together with recovering bitcoin hash rate and the fact that US elections are out of the way, points to further gains for bitcoin and the broader market as a whole.

He believes that the consolidations of recent days are healthy signs that bitcoin is doing exactly what it should be. Jason Lau – COO of cryptocurrency exchange OK Coin – further explained that bitcoin is also in a solid place, and that the bull rally is likely to continue in the long term. He explains:

Bitcoin just cleared $16,000 for the first time in three years, confirming the existing bullish uptrend. It’s been a strong one, with six consecutive positive weekly closes. Strong institutional interest (BTC futures open interest is at an all-time high) and incoming retail flow (PayPal opened crypto buys to all US users today) are providing continued fuel for this rally. With minimal resistance until $20K, it’s hard to tell how the next few days will trade into year end, but signs are positive.

What Are Traders Concentrating On?

Tim Enneking – the managing director of Digital Capital Management – suggested that the market demographics surrounding BTC and crypto have shifted, commenting:

The average BTC trader profile changes every 12-18 months or so. The profile has now become much more institutional, more concentrated and more focused on ‘hodling’ rather than trading.

Source: Read Full Article