No one can deny that the yo-yo effect is clearly visible across all cryptocurrency markets right now. After a week filled with ups and downs, it seems the Bitcoin price may finally be headed back to US$4,000 and more. Thanks to a 10.05% price increase over the past 24 hours, things are looking pretty solid once again. Breaking the resistance at US$4,000 will not be easy, though.
Can the Bitcoin Price Surpass $4,000 Again?
Zooming out to see the bigger picture, the bullish trend for Bitcoin is still intact as of right now. Even though the past few weeks have been volatile, the upward momentum is still there and hasn’t missed a beat whatsoever. In these volatile times, many people tend to forget Bitcoin was worth less than US$1,000 on January 1st. Right now, that same BTC is worth nearly US$4,000 even though it has declined in value quite a bit from its all-time high.
With a 10.05% gain in the books over the past 24 hours, the Bitcoin price is heading back to the US$4,000 mark as we speak. It is important to keep in mind that overcoming that particular resistance has happened before, although it remains to be seen how long it will take this time around. With so much volatility affecting the markets over the past two weeks, no one should expect any major uptrend out of the blue right now. Then again, the China news is effectively irrelevant to Bitcoin itself, and the market is slowly responding in a positive manner.
Most people tend to overlook how the Chinese exchanges will not close down entirely. Instead, they will disable CNY trading, but any activity taking place between cryptocurrencies directly will still go through. Moreover, CNY trading will not be halted until the end of October, which means there are still six full weeks of trading opportunities. There was never just cause for the Bitcoin price to decline in the first place, although that is all water under the bridge right now.
Looking back at the information that actually matters, the Bitcoin price sits at US$3,864 according to Coinmarketcap. Bitfinex is trading it at US$3,970, whereas Chinese exchanges are still driving down the Bitcoin value by valuing it at US$3,250. This gap between China and Western platforms will remain in place for quite some time to come. In fact, it may never disappear, given the government’s stance on cryptocurrency altogether, which raises a lot of questions.
That being said, Bitcoin has seen US$1.65 billion in 24-hour trading volume, which is pretty solid for a Sunday. Most of this volume originates from Bitfinex, OKCoin, and BitFlyer. All of these exchanges have dominated the charts for several days in a row now. Huobi and Bithumb complete the top five as we speak. It is pretty intriguing to see South Korea value Bitcoin at the same price as the West, rather than following China’s example in this regard. Whether or not that will remain the case is anybody’s guess for now.
For the time being, the first objective is to push the Bitcoin price back above US$4,000. That will not be easy, though, as a lot of people bought the previous dip and are looking to cash out around that price point. It will take some significant bullish momentum to topple $4,000 and maintain that level for longer than an hour or two. Whether or not that will happen today remains a big question mark. The uptrend is still there, but no one should bank on any major positive market movements right now.