After breaking its first ATH yesterday on BTC-E – the oldest Bitcoin exchange still running – Bitcoin’s price is continuing to climb further nearing uncharted territory. Not only were other exchanges’ ATH’s broken, but this is the longest time in history where Bitcoin’s price stayed above the $1000 mark.
Bitcoin’s price has crashed over $70 as traders decided to take profits. While the crashed proved that the rally has strong resistance it also showed that Bitcoin isn’t a money machine whose price will keep rising to no end. Such market corrections are expected and serve as a good reminder to always trade with caution.
Bitcoin is nearing the last ATH left to break – MtGox. In November of 2013, MtGox hit an all time high of $1242. Many users do not consider this to be a true ATH due to the fact that it was almost impossible to move funds in or out of the exchange at the time. During that period, MtGox started having withdrawal issues and users started to panic, rightfully so. Many argue that the price was pushed further by the fact that users tried converting fiat to bitcoin in the hopes that their withdrawals would go through.
No matter how much we ignore the fact that MtGox was already insolvent at the time, breaking other ATHs doesn’t feel as good as reaching MtGox’s record. As Bitcon’s price nears $1200, the market is reaching uncharted territories. $1200 is definitely a mental wall in the market, because as the excitement builds up many traders might take profits when they see that even number. On the other hand, it is perfectly possible that new investors might also join in at that time pushing the price further.
If the price reaches $1250, Bitcoin would have officially hit uncharted territory. At no point in time in Bitcoin’s history has the price topped $1250, if that happens expect even more media coverage of Bitcoin.
Traders agree that one of the main reasons for Bitcoin’s recent rally is the upcoming ETF decision which based on the outcome could make Bitcoin an official exchange traded fund. As a result that approval would introduce more conservative investors to the scene. As traders are betting on the decision’s outcome the market is showing that most are betting for a positive outcome. You can try betting for the outcome yourself on the BitMex platform which allows for the settlement of the bet in Bitcoin.
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