During the past week, the price of Bitcoin moved away from the $9,000 range it reached on Wednesday to being close to a value of $12,000 per 1 BTC. Thanks to a week free of turbulence and positive news coming from key markets, Bitcoin began to stabilize around its former highs.
One important news update we saw this week was that the government of South Korea reportedly had a change of heart about starting a country-wide crackdown on cryptocurrencies. As reported by CNBC, representatives from the local government have now announced that South Korea would instead support and encourage cryptocurrency operations, but only as long as transactions stay “normal”.
Furthermore, the US state of Wyoming also passed a new bill on Monday that would prevent crypto tokens being labeled as “securities”, thus disabling more government restrictions and regulation of the cryptocurrency sector. This new legislation, along with the positive news from South Korea, could be what helped push the price up.
Market is Turning Bearish
During the past week since our last update, the price of Bitcoin began a steady climb that wasn’t interrupted by any significant bursts of volatility. The lowest price point during this period was reached on Thursday morning, when BTC price dropped down to $9,581.35, while the highest that Bitcoin’s price climbed was near the end of the day on Tuesday, when 1 BTC reached a value of $11,901.50.
During the price increase, the trading volume remained fairly consistent, just like last week, showing that there hasn’t been any drastic change in interest from traders. As our charts show, the trading volume mostly stayed between $7-8 billion until today when it climbed to $10.3 billion. Bitcoin’s market cap is also on the rise, currently sitting at $189.6 billion.
Our technical analysis shows that the market is currently turning bearish, with 8 out of 12 oscillators and 8 moving averages sending a selling signal on a short-term time-frame. Less resistance is still to be found on the upward course, so all is not lost. On longer time charts, the market is sending mixed signals, indicating that we’re at a neutral zone where we have to wait for a clearer sign that’ll point to the next direction. So, stay vigilant and keep an eye out for any longer trend changes.
Anonymous Buyer Dumps $400 Million in Bitcoin
In other interesting news, an anonymous Bitcoin buyer spends $400 million on the cryptocurrency, or enough to buy the priciest home in the state of New York twice, according to Fortune magazine. The investor, whose identity remains a mystery, has spent the massive sum to double his cryptocurrency portfolio during February 9th-12th, a time when Bitcoin traded near the $8,000 mark.
Namely, the buyer went from owning 55,000 Bitcoin to holding over 96,000 of the coins by originally buying a bulk on February 9th and then adding 9,000 more coins on February 12th. The estimated gains for this trade are reportedly $83 million while the entire portfolio of the buyer is estimated to be worth $1.1 billion.
However, this investment isn’t the first time the buyer went all-in on Bitcoin and dumped a massive amount of cash on it. S/he also made an investment on December 12th, buying around 48,626 coins when Bitcoin sold for $17,000. Not long after this purchase, Bitcoin hit a peak of $20,000 per coin and then the price started crashing to eventually hit a point of $6,000 this February. Thus, whoever the investor may be, s/he must be someone that really believes in Bitcoin.