Right before the weekend, things have started to pick up for Bitcoins and the price broke out of the $910 range. And all this is happening despite lowered interest from Chinese markets, which have been almost slashed by the newly-imposed buying fees since Tuesday. Who knows, we might now just see Bitcoins enter a new stage, one hopefully plagued by less volatility from purposely inflated volumes.
In other interesting news from the Bitcoin worth, US President Donald Trump is continuing to add Bitcoin supporters to his administration. Namely, according to recent news updates, Trump is considering Bitcoin entrepreneur Balaji Srinivasan to head the Federal Drug Administration (FDA). If he is accepted, it would make Trump’s government one of the most pro-Bitcoin governments in the world.
Balaji Srinivasan, a Standford academic and founder of BTC startup 21.co, is the second proponent of Bitcoins that Trump has considered to head an office during his presidency. The other instance is Mick Mulvaney, a congress member and one of the people who launched the Blockchain Caucus, who is being considered for the role of head of Office of Management and Budget.
Buyers Return to the Scene
In the past 48 hours since our last update, the price of Bitcoin remained stable for most of the Wednesday trading, consolidating between the $895-900 range, just like we predicted. Its lowest point was brought by a short burst of volatility the same day, which took the price down to $883.58, while its highest point was reached in the early morning hours today, when it hit $915.61.
The trading volume also saw a slow rise that started on Wednesday afternoon, which most reports assume to be coming from other popular markets like India. It is currently at $137,806,000 and rising, while the market cap is at $14.8 billion.
Our technical analysis shows that the market is heavily pro-buy. Out of 12 moving averages, 11 are sending a buying signal, with 8 out of 12 technical oscillators also signaling the same trend. However, on a five hour frame the SMA 100 lies safely below the SMA 200, which hints at a possible reversal downwards, with the Stochastic also sliding in the “overbought” range.
Judging from the volume increase and the overall buying mood, the price seems headed for a test of the $915 resistance. However, if sellers overtake, we are likely to see a break below $910. As always, keep a close eye on the market for any sudden swings, especially right before the weekend.
Venezuelan Miners Arrested for Stealing Electricity
In other interesting news, four Venezuelan miners from the city of Charallave were recently arrested on charges of stealing electricity and committing Internet fraud. Among the arrestees are three Venezuelan men and one woman, aged 23-57, all of which are accused of running over 300 Antminer mining units and then selling their mined BTC through a commercial platform.
According to official updates, the miners were accused of affecting electricity consumption and stability in the area around the Colombian border, the same location where they chose to sell their Bitcoins. The charges stem from Venezuela’s electricity droughts and blackouts brought by over-consumption, which is reportedly why the miners moved to the industrial zone, so they can avoid any interruptions.