The price of bitcoin is back in the spotlight, but following weeks of sky-high gains, market observers are beginning to assess what could be next. After hitting two-year highs earlier in the week, bitcoin prices fell notably entering Wednesday, nearing correction territory after enjoying a sharp rally. However, several market observers asserted this decline was only temporary, and that the price could push its price higher in the coming weeks.
Experts pointed to a number of factors, including rising volatility, the coming decline in bitcoin rewards and falling bond yields and the looming possibility of a ‘Brexit’.
Combined, however, market observers believe that bitcoin prices have only experienced a ‘temporary pullback’, and that future price appreciation remains a strong possibility. Support persists
Though hovering at a press-time total near weekly highs, the price of bitcoin has been on the move over the past few days.
The digital currency fell to a low of $661.60 on 14th June, after reaching $719.85 the day before, CoinDesk USD Bitcoin Price Index data revealed. This represented a decline of more than 8%, just short of the 10% drop required to signal a correction.
However, this $661.60 low seems to have represented strong support, as bitcoin prices then began a steady climb, hitting an intraday high of $691.70 by 20:45 UTC, BPI figures reveal.
Petar Zivkovski, director of operations for bitcoin trading platform Whaleclub , told CoinDesk that he believes this action has established $660 as a key price indicator.
Zivkovski told CoinDesk: “$660 is now very ‘hot’ support. [The] price pumped almost $30 quickly after touching that level." Confidence high Even as prices fell, Zivkovski said Whaleclub observed that this didn’t correspond to an increase in short positions."Rather, traders adopted a neutral position with the aim of buying at lower prices, creating support and limiting downside," he continued.This is […]
