Continuing the rising trend we’ve been seeing since the beginning of this month, Bitcoin has reached a 3-year high that brings back memories from back before the Japanese Mt.Gox exchange collapsed and lead to a period of turmoil for the digital asset. Namely, during the past seven days the price broke out from yet another resistance range, with Bitcoin touching the $790 mark before returning to its current support.
A 3-year record high is bound to raise questions, especially since the milestone came despite many negative events in the world of Bitcoin. The key reason, as we reported earlier, is still believed to be high interest from China’s currency exchanges, with even Reuters reporting that the Asian country has played a significant role in the current value of Bitcoins.
Between China interest and the financial troubles that hit Venezuela and India, there should be little surprise as to why the number one digital currency is gaining momentum across the globe. However, whether the positive trend will continue or we’ll see it stop anytime soon will be entirely up to the market winds, which can change within the hour.
Price Back to $775 After Spike; Where Now?
Despite a period marked by relatively low volume, the past week proved to be exciting for the Bitcoin market as another short burst of volatility was brought on early yesterday morning. Namely, after breaking out of the $780 range on Monday, the price saw a sudden jump to the $790 mark yesterday morning, breaking its 3-year record on the way. But after spending nearly 2 hours near this range it dropped back to its previous value, where it has since remained.
Volume-wise, the past week hasn’t been very eventful, with the only major increase in interest seen around the time of the price jump, after which the trading volume once again went back to its current and relatively low value. As of now, the trading volume is at $64,513,800, while the market cap is at $12.53 billion.
Judging from our technical analysis, the price seems to be headed for further consolidation at this time. The long term signal coming from our technical oscillators is pro-buy, with 8 out 12 oscillators being in the buy zone. The same conclusion can be reached from the moving averages, all 12 of which also send a buying signal. But even though the long-term SMA 100 and the overall buying trend indicate an upward path, the Stochastic shows signs of seller pressure, which should keep the price around the current mark.
Bitcoins Used to Pay AI Hedge Fund Numerai
Long gone are the days where hedge funds were entirely dependent on human logic and expertise, as modern technology has now made room for the use of AI (artificial intelligence) in making trading decisions. In what is one of the few instances of positive news from the Bitcoin world lately, the cryptocurrency was used to pay around 7,500 anonymous coders who helped a hedge fund startup build its machine learning models for trading data analysis.
Namely, San Francisco’s Numerai hedge fund was built from the grounds up with the help of anonymous data scientists who voluntarily supplied data models to the pioneering startup, tech portal Wired reports. In return, Numerai compensated those whose predictions worked by re-paying them in Bitcoins.
This way, the hedge fund was able to build complex machine learning algorithms that allowed for automated stock trading and brought the promising company venture funding from a number of “big shots” in the hedge fund industry, including New York-based Renaissance Technologies.