Now that the Bitcoin price is on the rise again, people start to wonder where the interest is coming from. China is leading the market, as it always had, and investors might be diversifying their portfolio. With the resistance being broken across Chinese exchanges, where will this trend end?
Andreas Antonopoulos mentioned on Twitter how he thinks the weakened yuan is one of the causes for this recent Bitcoin price surge. Consumers and investors in China are trying to build up a stronger portfolio not tied to the CNY, and Bitcoin provides a welcome alternative. Plus, investors can use Bitcoin to convert to virtually any other currency or asset in the world.
Moreover, Andreas touched upon the Bitcoin price resistance at the 3000 CNY threshold. This invisible line has been seen as a major point of resistance for several months now. Every time the Bitcoin price ramped upwards, it would not hold above the 3,000 CNY level for too long, before declining in value again.
Now that Bitcoin is sitting above the 3,200 CNY mark; it remains to be seen if the trend can hold this time. Albeit Bitcoin is far less volatile than it used to be many years ago, there are still some price swings on a semi-regular basis. If this resistance point is broken for good, though, things are looking quite promising for this cryptocurrency.
As is the case with any Bitcoin price surge, investors and consumers should not get ahead of themselves. Many people have predicted a Bitcoin price of several thousand US Dollars, but this small surge does not indicate such spectacular growth just yet. No one wants to be left out of being part of the next price surge, yet caution is always advised.
All in all, this new Bitcoin price point is quite promising and has a lot of people excited. While it is too early to tell whether or not the trend will continue, flatten out, or reverse, the weekend will be a time during which a lot of traders are glued to their Bitcoin charts. Unlike most other investment opportunities, Bitcoin has a very real chance to keep increasing in value.
Source: Twitter
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