Ever since a month ago, when the price of Bitcoin broke out of the $2,000 range, things have been going very fast for the most popular cryptocurrency as a global buying wave pushed the price even higher, at one point even very close to $3,000 per 1 BTC. And looking from the current market stats, things might just continue this way.
Another interesting update that popped recently was that Apple’s very own Steve Wozniak was also revealed to be a Bitcoin convert. Talking to a CNBC interviewer on Monday, Wozniak reportedly said that he bought an unspecified amount of Bitcoin when it sold for $700 per BTC – not because he wanted to invest in it but simply because he wanted to “play” with the cryptocurrency.
Wozniak also revealed during the interview that he became fist interested in Bitcoin when it sold for $70 but due to it being very complicated to buy at that time he gave up the idea. He later bought it at 10 x that price, because he wanted to see how it was used, bought and sold. When the price subsequently dropped by half, he still didn’t fret, as he eventually earned plenty of money by sticking to his Bitcoins.
Market Still Pro-Buy
Looking back at last week, the price of Bitcoin has suffered a notable change, although not a drastic one when compared to previous price drops. The highest point of $ 2,920.38 was hit on Sunday evening, while the lowest point was last night, when the price dropped down to $2,669.49.
Yet, judging by the market stats interest is still going very strong as the trading volume has hit $1.62 billion, while the market cap is at a staggering $45.64 billion. Only a month ago these numbers were 2-3 times lower, so if you bought some Bitcoins at that time, you have little to worry about.
Our technical analysis shows that the trading market is still heavily pro buy, with 9 out of 12 moving averages and 11 out of 12 indicators signaling a buying trend. The SMA 100 is still over the SMA 200 on this time frame, hinting that the future path is upwards.
A very similar conclusion can be reached from short-term signals as well, which suggests that Bitcoins are to keep going up. However, as always, stay on the lookout for any rapid changes, especially in times like this.
Is A Bitcoin Bubble Really Coming Up?
It seems that talks of a bubble bursting soon will never stop but only intensify the longer Bitcoin keeps its incredible rally. This week the financial media world was once more buzzing about a potential price crash as the logical outcome of the steep uptick Bitcoin saw in the past weeks
Namely, several high-profile media reported on the speech of Raoul Pal – an investment strategist and author of the Global Macro Investor – at the Mauldin Economics SI Conference, where he spoke of Bitcoin now being in a “bubble phase” that would soon burst. He mentioned previous examples when the price lost three times its value and took long to recover, suggesting another such event might be coming soon.
The main reason, as he puts it, is that Bitcoin is having its most exponential rally thus far, which, according to him is not a good sign. This, combined with the probability that a hard fork might be introduced to allow for more Bitcoins to be mined and thus eliminate its image of a “store for value” was enough to convince him to sell his Bitcoins, which he had since they were only $200.