Just when this week started looking as though it will end on an uneventful note, the Bitcoin price was pushed beyond $760, something we haven’t seen in several months. Namely, after the Wednesday buyer pressure persisted to steadily push the price over $740, this morning brought yet another unexpected turn of events, when the price jumped by almost $12 in a matter of two hours.
The positive price push is believed to be the result of several factors, the most prominent of which is the increased interest from the Chinese market, where traders have for some time been turning to Bitcoins as the next logical asset. This trend was even further boosted by recent news from Chinese $multi-billion investment company Huiyin Group who announced the launch of a $20 million fund they plan to invest in Bitcoin-related companies.
And thanks to the Merkle, there’s now an official proof for the increasing popularity of Bitcoins. As the portal reported, Google searches for Bitcoins were up by 57% this month. Judging from recent events, it seems that Bitcoin is getting more acceptance on a global scale, which is always great news for those hoping to keep seeing the price go up.
Bitcoin on a Bull Run
The past hours were quite eventful for the Bitcoin trading market, as the price saw a nearly 2% increase, something that hasn’t happened since Trump won the US elections. The biggest push happened early this morning, when the price jumped from $748.97 to $762.56 in less than two hours.
The increased interest in Bitcoin trading could be seen in the market volume as well, which saw a massive spike in the past couple of hours. While two days ago it was near $72 million, it is now at $110,527,000. The market cap, on the other hand, is at an impressive high, currently amounting to $12.4 billion. As always, increased interest hints at a higher price.
The technical analysis shows promising signs also, as it signals that the market is heavily inclined towards buying. Out of 12 technical oscillators, 9 are pro buy, with only 2 remaining neutral, while all 12 moving averages also send a buying signal. The long-term SMA 100 is above the SMA 200 with a wide gap, showing the upside path is the most probable.
If buyers continue their pressure, we are likely to see another resistance break. However, a close watch on the market is still advised, as the winds can change within the hour.
Coinbase Summons Served
Not everything stayed positive in the Bitcoin world this week. Namely, one negative report that hit the online community was that the court summons for Bitcoin exchange Coinbase to deliver user data to the IRs was approved by a Federal judge, as reported by Digital Trends.
More than a week ago, the IRS filled a “John Doe” summons to the popular Bitcoin exchange, on the grounds of suspicion that some of its users were using the service for tax evasion purposes. Coinbase responded to the summons at the time by calling it a “sweeping phishing expedition”, but is now preparing to fight the matter in court, in light of recent events, according to official company statements.
The Department of Justice, on the other hand, states that the summons has little to do with Coinbase’s operations but more with violations of IRS provisions by unidentified parties, which Coinbase has no means of discovering. If the summons ends on a positive note for the IRS, it might be a direct impact on Bitcoin’s image as a free and anonymous currency.