The past few weeks, Bitcoin has been breaking headlines left and right as its price continues to rise. Almost doubling in a matter of 2 months, according to Bitstamp the current price of Bitcoin is $1550. So far the bullish momentum is so high that there doesn’t seem to be an end in sight. However, what does the immediate future hold for Bitcoin’s price, and why is the price rising at all?
The big question on everybody’s mind is why Bitcoin’s price rising so much so quickly One possible explanation is the fact that Japan is finally beginning to adopt the cryptocurrency as legislation regarding exchanges has been passed. Furthermore, consumers from China are now flocking to Japan as the regulations there are much more lax compared to that of China. Analysts have pointed out that 50% of the trade volume is coming from Japan, with the introduction of new exchanges it is no surprise that investors are coming on board.
Another explanation is how the SEC is giving the Bitcoin ETF a second chance by reviewing the application. While this may generate hype, keep in mind that any application has a right to the appeal and the SEC has to reconsider it. Just because the SEC is giving the ETF a second chance doesn’t meant the agency is favoring Bitcoin or is going to change its position.
Remember what happened the first time around when the market eagerly waited SEC’s approval? Let me refresh your memory.
Minutes before the SEC decision was announced the price spiked over $150 to an all time high of $1350. However, extreme highs lead to brutal lows. After the ETF was officially rejected the price bottomed out at $970. As always, it is a good time to remind you to never trade what you can’t afford to lose.
If you look at the trade volume around March 11th – the time the ETF decision was announced – you will notice a large spike of buys. This means that many people lost a substantial amount of money as the price kept on slipping for multiple weeks to a low of $891.
History aside, the current ATH to break is $1565 on Bitstamp. During such time of high volatility if the price keeps climbing another $100 rise is no unexpected. However, if the bears decide to take advantage of traders’ fears, the price can slide all the way to $1300 and test support there.
Disclaimer: This is not trading advice, this article is written for informational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.