Bitcoin surged yesterday rather unexpectedly, providing a parallel effect on Lite Coin, Etherium and Ripple. Fundamentals seem to be unclear, however media cite that the surge was prompted as investors which shorted the crypto, were squeezed as Bitcoin remained stable in the past few days. Analysts consider that there is a positive feeling among traders for the past few days which could open room for higher grounds. We see the case for Bitcoin to continue to rise, as long as positive headlines reel in.
Bitcoin surged yesterday and broke the 7425 resistance line. We see the case for Bitcoin to continue to rise, as long as positive headlines reel in, or else to continue to trade in a sideways manner. Technically in the broader picture, the crypto seems to be moving in a sideways manner between the 8895 resistance line and the 6235 support level since the 13th of March. Should Bitcoin find fresh buying orders, it could aim for the 8895 resistance line while should it come under selling interest we could see it breaking the 7425 support line and aim for the 6235 support level.
Monday was the first full day of trading for the Bitcoin futures market of CME. Volume and volatility was low, moderating any expectations of a new significant surge in the price of the crypto currency. Main reasons cited for the low volume and lack of excitement were high initial margins that are required, Dollar deposits instead of Bitcoin and time limitations set by exchange opening hours. In addition to that, warnings about the crypto currency increase as France’s finance minister is pushing for a debate about regulating the crypto currency at the next G20 meeting and the governor of the National Bank of Denmark states that bitcoin is a dangerous bubble. It remains to be seen whether Bitcoin is a bubble or not and if the warnings consist a self fulfilling prophecy or not.
Bitcoin dropped on Monday during the Asian morning, however it regained some of its losses during the European day and continued to trade in a consolidation manner throughout the day between the 17000 support level and the 19500 resistance level. Should the pair be influenced by the bad press and the low volumes we could see it break the 17000 support level and aim for the 15580 support zone. Should the crypto currency come under buying interest, it could break the 19500 resistance level and aim for the 21000 resistance hurdle.