Bitcoin Price Flying High for Long?

The price of Bitcoin recently dove to US$3,824 and subsequently picked back up to reach a high of US$4,480. At the time of this post, the price sits at around US$4,294. Bitcoin has been fairly volatile lately due to the recent all-time highs, and the market is at a crossroads in regard to its next move.

We have seen the largest increase in market capitalization yet, with one Bitcoin pricing in at over US$4,000 in recent days and the current market capitalization hovering at around US$68 billion. In August 2013, roughly four years after the inception of Bitcoin, the market cap was at approximately US$1.3 billion and the price of one Bitcoin was a measly US$111.70.

Many respectable people in the Bitcoin industry or even outside of the industry have recently speculated that BTC might go to US$500,000. Another has speculated US$7,500 by this year’s end, which is more realistic in my opinion. I do personally speculate that Bitcoin can reach 5 digit pricing in the near future.

Key Points:

  • Bitcoin price mania continues
  • Rarity of Bitcoin pushes the price up
  • RSI has been over 70, still overbought

Source: Bitstamp.com

In other news, most altcoins have been seeing red as of late, potentially due to the recent Bitcoin price increase and speculation of much higher pricing.
alts decrease

Source: Coinmarketcap

A trader named DianKemala on Tradingview.com recently noted a “new support and new target” for Bitcoin, which goes to show that bullish market sentiment still exists!

Source: Tradingview.com

Bitcoin’s RSI has been over 70 since August 9th, so for 10 days now the market has been in the overbought zone. The cryptocurrency market is ever-evolving and doesn’t seem to be slowing down anytime soon, even with the high RSI. However, traders should be careful about buying in when the market has been in such a dangerous zone for so long.

Bitcoin pricing sponsored by Denarius [DNR]. More information at https://denarius.ioThis is not investment / trade advice. Always do your own independent research.

Image(s): Shutterstock.com