The past week has been a good one for Bitcoin. After 5 days of quite waters, a second wave of bulls joined on January 30th. Since then the price has been rising day in and day out. As the week came to an end, the market slowed down a bit as some traders claimed profit. However, right as it seemed the run up was over, a few large buys disrupted the market. The price jumped almost $30 in a few hours as traders FOMOed.
In an earlier article, we discussed how the most speculated reasons to Bitcoin’s recent price increase are the current political tension, and organic adoption. People in developing countries are learning how Bitcoin can benefit them and how it can provide them with a way to survive an economic collapse. Furthermore, Bitcoin’s price recently spiked to $1600 on Nigerian exchanges, showing further proof of demand for the cryptocurrency.
Taking a look at this current price chart from Bitcoinwisdom we can see strong support for $1000 meaning BTC will most likely stay above that level. However, the volume has died down for the weekend, meaning that traders are still on the sidelines and are watching for any big moves. While a few major buys were made here and there, the trend moving forward is still undecided. Taking a look at r/BitcoinMarkets, quite a bit of traders agree that it would be smart to take profit now and try to rebuy later at a lower target.
It is quite surprising to see how quickly the crypto has recovered from Chinese regulation crackdown. In the past, any bad news coming from china – especially its government – would send Bitcoin into dark ages for weeks or even months. Furthermore, India’s war on cash is only further pushing Bitcoin upward. As the Indian government is aggressively pushing citizens to use alternative forms of payment, cryptocurrency is becoming more and more popular. Last but not least, Trump’s border wall may bring even more attention to Bitcoin in Mexico, and may even spur it’s adoption.
If no major players take profits any time soon (especially on Sunday), then expect Bitcoin to keep rising all through next weekend. While some economists are extremely optimistic and calling Bitcoin at $10k for 2018, the current target is $1100, but expect some pullbacks at $1040. Checkout this video to see Tim Draper’s crazy Bitcoin prediction:
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Disclaimer: The article reflects the author’s personal views who may or may not be a Bitcoin investor. This article is no meant to be treated as trading advice, always do your own research before making any investment decisions.