Today could be a good day for Bitcoin holders after all. Earlier this morning, it appeared that the Bitcoin price was on the brink of going below US$2,200 again, but things are turning around in the right direction. More specifically, the Bitcoin price is pushing toward US$2,500 once more, as the market notes a 4% price increase out of the blue. Additionally, the Bitcoin market cap is above US$40B once again. Things are looking quite good for Bitcoin right now, but can its momentum be maintained?
Are We Witnessing a Bitcoin Price Reversal?
For some time now, speculators have wondered when the Bitcoin price would start to make a move toward US$3,000 again. So far, that has proven to be rather difficult, as the Bitcoin price showed plenty of bearish signals these past few days. The effect of last weekend’s price crash is still visible on the charts, yet it seems that things may finally be turning around in favor of the popular cryptocurrency.
Indeed, the Bitcoin price is making some upward moves as we speak. Earlier today, one BTC was worth close to US$2,250. At that time, the overall trading volume was rather small, which may have explained why prices were slowly slipping. It now appears that the volume is picking up, and we can see multiple green candles appearing on the charts. With one Bitcoin being valued at US$2,460 and still climbing, it is safe to say that Bitcoin is on the mend. This is good news for anyone who believes in this particular cryptocurrency, to say the least.
Even though the Bitcoin price has gone up by around US$200, it only represents a 4.12% price increase, according to Coinmarketcap. That is only normal, as the platform gathers price information from many different exchanges all over the globe. In Korea and China, Bitcoin prices are always higher compared to the rest of the world. Consequently, a US$200 price increase in the West is a mere blip on the radar for Korea, China, and Japan. The bigger question is whether or not this momentum can be maintained for more than a few hours.
Speaking of the Bitcoin price across multiple exchanges, Poloniex is leading the charts volume-wise with its ETH/BTC market. Bitfinex is in the lead with fiat currency exchange, with a very solid BTC/USD volume right now. bitFlyer is the next exchange dealing with crypto-to-fiat trading, followed by GDAX, Bithumb, Gemini, Bitstamp, and OKCoin. This could turn out to be a very good day for fiat-to-Bitcoin trading. Just yesterday, these fiat currency markets looked a lot bleaker than they do right now.
With a 24-hour trading volume of over US$1.2B, Bitcoin is slowly getting back on track. However, there is still a lot of work to be done before it can overtake Ethereum again. For some reason, Ethereum trading is double the volume of Bitcoin right now. It is possible this has something to do with the recent Parity hack and people selling ETH across exchanges as quickly as they can. Only time will tell the real story behind these numbers, but we do know that Ethereum is suffering from a value decline whereas Bitcoin is on the rise. Then again, this is only a momentary snapshot of the cryptocurrency markets, and things may change by the time you read this article.
In the end, it is good to see that Bitcoin still has some life left after a few days of very mixed market signals. While the road to US$2,500 – and perhaps even to US$3,000 – is still long and hard, we are seeing positive signs right now. It is certainly possible that Bitcoin maintains this bullish momentum for some time to come, although things can switch into reverse in a heartbeat as well. Now is a good time to make some decent money through margin trading and even exploring arbitrage opportunities.
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