Tuesday, 12 June 2018

Bitcoin price weekly analysis: a strong week followed by profit-taking


Five days of gains end with a sell off and slight price correction.

Key takeaways

  • A week of gains ends with a price fall as short termers take profits and run

  • Close to cracking $10,000 before the price took a hit

  • Market cap up by about $3B across the week

Bitcoin started the week at around US$9,300, peaked at a little over $9,900 early on the weekend before dropping to $9.500. It’s curently trading at around $9,700 with the beginnings of an upward trend appearing.

Market capitalisation followed the same pattern, starting the week at just under $160B, almost reaching $170B before dropping back to arounf $163B. Trading volumes peaked last Thursday as the price started to rise, before settling in the low $160B range over the weekend and so far today.

After the tumultuous fall of Janauary, when the price of bitcoin and most other coins took a beating after a rapid rise, I’m loathe to make any longer term predictions. But based on current trends and what I’m seeing from various analysts and advisors, it seems that bitcoin is set to hold about $9,000 for quite a while and, potentially even about $9,500 judging by current trends.

Overall, the bitcoin trendlines are positive and falls such as the we saw over the last 48 hours or so are part of the “two steps forward, one step back” trend we’ve seen over recent weeks.

We’ve seen some strong growth in bitcoin over the last few weeks. We reported last week on bitcoin;s recent proce rise from around $6,600. Now that the price is up by over 50% over recent weeks, it’s not surprising to see some traders turn that bull run into real, and not paper, profit.

TradingView suggests that the next step up where the price will stabilise will be between $10,800 and $11,000.

CCN says that when the bitcoin price fell by nearly 10 percent after getting close to $10,000 mark it dropped from $9,800 to $8,800 within a single day. But over the past 24 hours, the bitcoin price only dropped by $400 after testing $10,000. They say this shows bitcoin has gained stability in the $9,500 region and is can bounce back after large sell offs.

That makes sense looking at what’s happened over the last few days. While there has been a drop it hasn’t been as precipitous as other times and there are signs of the fall being arrested and the price recovering.

Disclosure: At the time of writing, the author holds XLM, BTC, EOS, NEO, ETH and XRP.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators’ websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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Picture: Shutterstock

Source: https://www.finder.com.au/bitcoin-price-weekly-analysis-a-strong-week-follwoed-by-profit-taking


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