The price of bitcoin has once again crossed another all-time high reaching an average of US$1240 across global exchanges, before climbing to new heights above $1250. Bitcoin’s value had already met parity with the price of one ounce of gold and had also beaten the December 4th, 2013 Mt. Gox ATH price of $1242.
Bitcoin Price Kicks Into High Gear
Bitcoin’s incredible run up has continued to chug forward many believe the spike is due to the March 11 SEC decision for the first bitcoin exchange-traded fund (ETF). During the morning before the new ATH, the price per BTC had consolidated in the $1235-40 range moving in a steady upward motion. If the price goes south, there is strong support around the $1180-1200 range, but nothing suggests a bearish decline at the moment.
Technical indicators show sellers are keeping things interesting, giving room for intra-range and day trading techniques. At press time the 100 Simple Moving Average (SMA) and 200 SMA show a significant divide signaling the possibility of more upswings from buyers. The Relative Strength Index also shows bullish conditions may continue as momentum builds. In other countries, bitcoin price spreads are higher than the global average which shows strong demand. For instance, the South Korean bitcoin exchange Coinone shows an average of $1280 per BTC but one quick price spike brought the price to $1880 USD around 14:30 Beijing time.
A week ago bitcoin was trading at $1180 per BTC as the uptrend in value started rising steadily. The bullish trend doesn’t seem to be slowing up as it may coincide with the ETF decision that’s a little over a week away. Currently, the price is trying to test new levels that could enter into the $1250-60 range in the near future. Moreover, during the past seven days, bitcoin’s market capitalization is very close to reaching $20 billion USD. However, bitcoin’s market dominance against other cryptocurrencies has declined to a low of 84 percent as some altcoins are trading at new price highs.
In the News
News has been relatively positive in regards to Bitcoin, as long as it’s not coming from China. A majority of the bitcoin community is focused on the changes taking place with Chinese bitcoin exchanges. China’s central bank has imposed quite a few new guidelines essentially dropping the country’s BTC trading volume like a rock. Alongside, Japan has taken the reigns and now begins to lead in overall global bitcoin trade volume.
In other news, many headlines are paying attention to the upcoming SEC decision regarding the Coin ETF. Coin shares will, if approved, be backed by bitcoin held in reserves and enable mainstream investors to hold the non-traditional asset class in their portfolios. The recent price increase seems to be attributed to the ETF decision, and bitcoin proponents believe that if Coin is approved bitcoin’s value will go moon-bound.
Cryptocurrency Markets Overview
Meanwhile, as bitcoin breaks new levels, a few other altcoins have also been testing new highs. As said above, bitcoin’s market dominance has dropped while digital currencies like Dash and Ethereum are capturing quite a bit of capital. The biggest jump up has been demonstrated by Dash which is currently trading at $57 and holds the third highest capitalization. Alongside this, Ethereum has picked up the pace as well trading at close to $19 per Ether at press time. Bitcoin, Ethereum, and Dash have been pushing record trading volumes surpassing $384 million USD per day.
The bitcoin price could very well reach the $1300 range in the near future and possibly before the ETF decision. The SEC’s action on March 11 could effectively move the price either up or down as well. For the time being, technical indicators suggest the bull run will continue until this date, likely reaching new highs along the way.
Bear scenario: Short term support looks as though there is a solid floor in the $1180-1200 range at press time. During these highs literally anything could happen and a bearish decline could falter key trend lines.
Bull scenario: 24-hour and weekly charts suggest the bull run will continue to ride the ascending channel pattern. If things continue to progress upwards, the price per BTC could easily cross the $1300 mark over the course of the week.
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”.
What do you think about Bitcoin’s price trends at the moment? Do you see the bullish rise continuing as the ETF decision approaches? Let us know in the comments below.
Images courtesy of Shutterstock, The Coinone app, and Bitcoin.com.