Another week closes on a very positive note with the price of Bitcoins sticking closely to the $740 mark. The strong bull pressure we observed on Wednesday has pushed the cryptocurrency way beyond what anyone expected, scoring a 3.3% increase in the course of one hour. These sudden price boosts we’ve been seeing in the past two weeks only serve to prove of how unpredictable, but also favorable the trading market can be.
Just like with any rapid price increase, the cause of the surge is beginning to start rumors through the markets with anything from whales buying high loads to massive interest in the Asian markets being considered as a possible reason for the uptick. The strongest rumor so far is that Chinese traders were responsible for the increase since the Chinese Yuan hit an eight-year low, as reported by several news media.
However, this is largely a speculation without any tangible evidence to support the claim. But while Bitcoin fans speculate on the market trends, the real question remains whether this price will stay or tumble down on seller pressure at weekend?
Price up by 0.4%; Bulls Still Driving the Market
The past 48 hours have been pretty exciting in the world of Bitcoin, as the price hit its highest point in the past months, leveling with what it once was in June this year. The spike was brought by the Wednesday trading market, when during the afternoon the price jumped from $712.26 to $735.36 in the course of a single hour. And while it expectedly reversed a bit after the surge, it has remained fairly strong and always between the $735-740 range.
The daily volume charts show a decrease in interest over the past hours, with the current value being almost half of what it was yesterday when the price hit its highest point, or $86,520,800. The market cap, on the other hand, is at a record high of $11.9 billion. The loss of momentum, as always, doesn’t instill hope for another major push, yet the market does.
Our technical analysis shows that the overall market trend is pro-buy, with all 12 moving averages indicating buyer pressure and 4 out of 12 technical oscillators signaling the same trend. The SMA 100 has moved way past the long term SMA 200, indicating that the upper range is where the least resistance is, while the Stochastic has reversed from the “oversold” zone to being pro-buy. If the buyer pressure continues, we are looking at another possible resistance break past $750.
Dubai Authorities to Discuss Bitcoin Legislation
Even the United Arab Emirates are considering hopping on to the Bitcoin wagon, according to a GDN news report. Namely, the Supreme Legislation Committee, or SLC, will be holding a workshop in Dubai on Sunday, November 20th, 2016, called “Virtual Currency: Fact and Law”, during which there will be talks of creating a legal framework and legislation to regulate the use of Bitcoins in the emirate.
The workshop will be attended by officials from the local Dubai government and the federal UAE authorities and is expected to help spread knowledge and awareness of how Bitcoin and other cryptocurrencies work. For this purpose, the SLC has teamed up with the Dubai Electronic Security Center (DESC), who will be supporting the workshop.
Commenting on the event, the executive director of the DESC, Yousef AlShaibani, said that the DESC believes the UAE and Dubai emirate should take the lead in the region when it comes to setting up a legislative, financial, and organizational framework for the cryptocurrency.