The surge of the cryptocurrency continued yesterday and during today’s Asian morning however it was not able to reach the last week high yet. Despite the fact that the cryptocurrency covered Friday’s losses, marking possibly a temporary stabilization, fears of high volatility remain according to media reports. The high volatility, could also be a factor which prevents large businesses from accepting the cryptocurrency and hence reducing its overall acceptance as a payment method, having an unseen detrimental effect on Bitcoin and highlightening its role mostly as a speculative instrument.
Bitcoin continued to rise yesterday and today during the Asian morning, it broke the 15580 resistance zone and its price hovered slightly above it. Our opinion is that the direction of the cryptocurrency could continue currently on a sideways manner with the risks still tilted to the downside. Should the bulls take the driver’s seat, it could break the 17000 resistance level and aim for the 19500 resistance zone. On the other hand should the bears take the reins, bitcoin could break 15580 resistance level and test the 14000 resistance zone.
Bitcoin regained some of the major losses it had on Friday. The cryptocurrency started to rise again since the European afternoon and has continued so during today’s Asian morning. It could be the case that Asian traders pushed the cryptocurrency’s price back up again. Another interesting fact of Friday’s rise and fall in Bitcoin would be that other cryptocurrencies showed similar behavior, making Bitcoin, currently at least, the trend setter for other cryptocurrencies. On other news headlines, the Israeli Securities Authority seems to be about to propose a ban of companies which are based on Bitcoin from the Tel Aviv Stock Exchange and the Russian finance minister stated that cryptocurrencies should be traded only by professionals, adding further to the voices urging caution.
As mentioned, Bitcoin posted heavy losses during Friday, breaking the 14,000 US Dollar barrier and briefly the 12,000 level. The cryptocurrency regained from then on and continued trading today, above the 14000 US Dollar barrier but still below the 15580 resistance line. Should it come again under selling interest, we could see the cryptocurrency trading in a similar manner once again by breaking the 14000 level and testing the 12000 barrier. Should the buying interest continue to push the prices higher, we could see Bitcoin breaking the 15580 resistance hurdle and aiming the 17000 resistance zone. It could be the case that Bitcoin is not out of the woods yet and a second sell off wave is still possible, hence we are quite hesitant to call for a new rally in Bitcoin prices at the moment these lines are written.
Bitcoin dropped heavily over today’s Asian morning after media reports suggested that large investors intend to reduce their exposure or even realize the profits of the last months surge in the cryptocurrency. Should the reports be true, there could be a shift from few large holdings and large investors to smaller holdings and more but smaller investors. Also it could be the case that more and more investors are opting to switch to other trading instruments which allow them to go short on their investment, hence providing more flexibility. On other news reports, Goldman Sachs is intending to open a cryptocurrency desk, accommodating the increased demand from its clients.
In the meanwhile Bitcoin dropped heavily yesterday and during today’s Asian morning, breaking the 15580 dollar support zone and tested the 14000 support level. We still have the view that the bears have the upper hand on Bitcoin and should they continue to do so, the cryptocurrency could break the 14000 USD support level and test the 12000 support zone. Should the 12000 support zone also be broken we could see bit coin aiming for the 8900 level which could be viewed as the starting point of this month’s surge. On the other hand should the bulls take control of the market we could see the cryptocurrency breaking the 15580 resistance level and aim for the 17000 resistance zone.