The price of bitcoin is back on the upside after a slight correction over the past 48-hours, dropping from a high of US$1870 to a low of $1601 on the evening of May 12. Currently the price per bitcoin is resting at $1725, rebounding on May 13, presently struggling to push above current resistance.
Are You Not Entertained?
It’s been an entertaining week watching the charts as bitcoin’s price once again hit an all-time high. After breaching the $1800 range the digital currency’s value almost touched the $1900 mark, but settled in the lower $1800s a few hours later. The price held stable in this territory for a little less than 12 hours and started to see a bearish dip. At its lowest point, the price spiraled downwards losing 10 percent in value throughout May 12 as the currency’s fiat value came awfully close to entering the $1500 territory.
Weekly View and Technical Analysis
Reaching a high of $1890 was sure to bring volatility and the following correction. Many traders this past Friday predicted the price to drop lower into the $1400-1300s. However, the downtrend has led to a slight comeback into the $1700 range, which is an excellent sign for global trading markets. The possibility of approaching new all-time highs is still probable in the near future with the way bitcoin’s price has been trending. Technical indicators are showing different stories once again as the Simple Moving Average (SMA) shows the price may continue its path on the upside. Meanwhile, the Relative Strength Index and Stochastic show buyers are getting tiresome.
Most altcoin prices are presently lower than the weeks prior, as a majority of the top ten markets have declined a touch. Ethereum (ETH) holds a price of $89 per ETH with a $8.2 billion market cap. Ripple (XRP) is one token still climbing slowly in value as the price per XRP is $0.20 cents at the time of writing. Litecoin (LTC) fans never got the large pump they were expecting from Segwit integration as the price dipped from a high of $35 to a low of $27 per LTC coincidentally after the implementation. Other altcoins at the moment are all seeing lows with NEM ($0.12), Dash ($86), Ethereum Classic ($6), Monero ($28), Stellar ($0.03), and Augur ($16). Bitcoin dominance compared to the rest of these markets is currently 53 percent at press time.
Bitcoin buying pressure is keeping the price above the $1700 range, and a bigger push could get the value back into the $1800s. Volume is a bit lower than the past two weeks with $700 million traded daily so exhausted traders are likely resting and watching on the sidelines. Many people agree the subsequent dip after closing in on $1900 wasn’t that bad as the price was destined for correction after moving so fast. At present, looking at technical indicators and trader sentiment another all-time high is attainable.
Bear Scenario: May 12th had shown there is a good floor between the $1600-1650 price territory. However market confidence could drop at any moment, and bearish traders could short the price to lower levels in the $1400-1500 range. Over the next week, traders should expect a very volatile price until markets settle down.
Bull Scenario: Bitcoin’s fiat value can once again reach new highs in the short term or over the course of 4-7 days if the upside continues. Last week we predicted the dip would take place in this current price range which shows markets are healthy and could continue to push the price up. Short term technical indicators seem more reliable at present, and it seems the uptrend in bitcoin’s price will likely continue unless there is an unexpected adverse occurrence.
What do you think about the price of bitcoin coming back down to the $1700s? Do you think bitcoin will hit another all-time high? 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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