During the past two weeks the price of Bitcoin has set on a new course over $1,000 thanks to an unusually calm period with little reports of regulatory restrictions and negative events. With no new updates from China and the expectancy of the first Bitcoin ETF, the cryptocurrency has enjoyed a positive increase that allowed it to touch yet another record.
Even single-family offices (SFO), according to news reports, are hopping on the Bitcoin bandwagon as a way to diversify their portfolios. While these single-family trusts have always been tied to traditional assets, there is a rising trend among SFOs to invest in Bitcoins and their technology, thanks to the cryptocurrency’s increasing acceptance by businesses, hedge funds, and “institutional players”.
Bitcoin Nears $1,200
The price of Bitcoin hit another record as it remained very close to the $1,200 mark. This rounds up weeks of Bitcoins trading over $1,000, which is the longest period the cryptocurrency has stayed above this level and a personal record. The long-persisting trend has led some analysts and market watchers to conclude that there is a new floor in the making that will keep the price from breaking below $1,000.
The price growth has also been correlated to the growth of other assets like US Stock Indices, including Nasdaq and Russell 2000, which likewise hit a record high last week. This correlation has also given analysts room to speculate that Bitcoin is changing into a more traditional asset – an assumption which, if realized, could see the cryptocurrency enter a more stable era.
But the real question everyone’s asking right now is how high will Bitcoin grow? Well, there are plenty of talks that the Winklevoss’ Bitcoin ETF will catapult the price even higher, but this dream is still very far from reality, as most predict the chances of SEC approval are only 10-15%. Thus, if the application is denied, we might also see a downward trend after March 11th.
Bulls Keep Pushing
During the past two days since our last update, the price of Bitcoin went on a rise that took it close to its all-time record, but not without frequent drops. The lowest point was observed on Monday, when Bitcoins traded at $1,171.31, while the highest point was hit early yesterday morning, when the price went up to $1,199.10 only to roll back and start stabilizing around $1,185.
It’s interesting to note that the trading volume has remained mostly consistent throughout this time and always above $110m, showing a healthy interest in Bitcoins. It is now at $145,591,000, which is good news for those hoping to see the price growing, while the market cap is also high, at $19.1 billion.
Our technical analysis shows that the market still remains generally pro-buy on a 5-hour time-frame, with 9 of 12 moving averages and 7 out of 12 oscillators showing a buying trend. The SMA 100 is safely above the SMA 200 on this time-frame, so there is less resistance to the upside, while the STOCHRSI hints sellers are getting tired.