Bitcoin Prices Re-take the $4,000 USD Mark on Bullish Sentiment
The month of September has been one of the most volatile months on record for Bitcoin. According to the monthly chart, Bitcoin has been able to attain its highest price ever in US Dollars in this month – a high of $4,979.90 USD. It also dropped to a low of $3,226 just two weeks later – a drop of more than 35%! However since the drop, the BTC price has been able to recover to above the important $4,000 USD mark at the time of this post ($4,151.10 USD).
Looking at the highs of the candlesticks that have been witnessed this month, there were close to 11 consecutive higher highs, giving an indication that the bulls are starting to exhaust themselves on the long-term timeframe.
Bitcoin Prices this Week
On this week’s timeframe for Bitcoin prices, there was some uncertainty as shown by the near-consecutive high and low count. There has been a bullish run for almost five weeks where the count attained five.
It has however been corrected because there have had about three weeks without a fresh high going beyond $4,979.90 USD. It is important to note that since the last market report was made, the price of Bitcoin has been swinging back and forth in terms of value. In general, the proponents of Bitcoin appear to be optimistic regarding the price just as the regulatory crackdown of China is slowly turning to a far-off memory.
After going below the $3,300 USD zone, the price gained some energy to move up to the $3,800 USD – $4,000 USD range throughout the week. On Friday, September 22nd, the price stability of Bitcoin in the China region made a wrong turn, causing about 5 percent loss in value.
This also came with a few sub-$3,600 USD low. But after some consolidation that has been ongoing for the last twelve hours, buyers have checked back to the trading area and raised the price to 3,798 dollars in the early morning.
Positive Moving Averages This Week
Order books from renowned exchanges as well as technical indicators show certain strong resistance going beyond the $3,800 USD to $3,900 USD zones. The Bitcoin market appears healthier than just a few days ago with the price holding above the day moving at an average of $125 USD.
But the bearish trend could just be far from being over as the weekly chart indicates the short term 100 SMA (Simple Moving Averages) just below the long-term 200 SMA. It is also predicted that the price will witness certain more consolidation within the next twelve hours.
China News in the Rear-view
Over the past two weeks, one of the extremely hot topics is news of China shutting down exchanges. As of now, the effects of the crackdown of Chinese exchanges appears to be waning, and the proponents have begun to focus on other things.
Right now, the price has moved up, but the volume is still very low with just about $1.1 Billion USD of bitcoins used for trade over the last 24 hours.
On the other hand, the market volume of cryptocurrencies have gone lower just as the weekend trading lull officially starts. Concurrent with this, the top twenty cryptocurrencies have been pushed by the price upswing just as the altcoins are witnessing a 5% to 10% gain.
Here is the bear scenario…
It is still possible that the price of Bitcoin could come down below the range of $3,500 USD and into other price zones that are very low.
The bull scenario…
At the moment, the Bitcoin market shows that buyers are still in control. However, they could be exhausted shortly since the volumes are not that strong. To gain real, strong momentum towards higher price points, the bulls should push past and hold above the $4,000 USD range for some time.
But the fight does not end there even if they attain the $4,000 price limit; they will still have some battles to catapult them to reach, and hold, above the range of $5,000 USD.
In our opinion – for now, the ongoing bullish sentiment will still go on with consolidations bearing any big news.