The past week has been anything but boring for the cryptocurrency community as a strong bullish sentiment swept over the market and the world got its first hint at who Satoshi Nakamoto could really be. The winner of the past week’s rally is undoubtedly Bitcoin, which grew from a $5,200 level to reach new heights supported by higher trading volume. As market signals now indicate, the buying mood still prevails and Bitcoin could very well be headed for a new price increase.
With the recovery of Bitcoin in the past month, the internet and media are abuzz with analyses as to what this latest price rally means for the nature of the coin. As the New York Times reports, people are now moving away from the Tulip Bulb theory that compared Bitcoin to a 17th century tulip craze in the Netherlands and are instead comparing Bitcoin to the dot.com bubble.
If you’re not familiar with it, the dot.com bubble was the internet bubble triggered by the rise of internet technology which eventually crashed but later stabilized, paving the way for the tech world of today. However, as a reporter of NY Times explains, Bitcoin may not be fitted into either bubble category but seems like an entirely different beast, one which unquestionably has a future as verified by the persevering interest in the sector.
Bullish Signals and High Trading Volume
Over the past week, Bitcoin’s price saw significant gains as it moved from a weekly low-point of $5,236.03 last Friday to reach $5,624.84 yesterday evening. Looking at the charts, it’s clear that Bitcoin’s rally was supported by a higher 24-h volume which grew over $16 billion as Bitcoin made its push. At present, the volume is at $15.9 billion and rising again, hinting at a new price change, while the market cap is at a healthy $99 billion.
Our technical analysis paints a strong bullish picture, with all 12 moving averages and 9 out of 12 technical oscillators sending green signals, indicating a buying mood. The SMA 100 is over the SMA 200, telling us that there is less resistance on the upward course. If bulls keep pushing, Bitcoin will likely break $5,650 and head to test the $5,800 resistance level afterwards. However, as short-term signals show, there’s also a danger of bears returning to test the $5,400 resistance.
McAfee Backs off from Revealing Satoshi’s Identity
One of the most exciting news from past week was legendary cyber security pioneer John McAfee’s claim that he knows the true identity of Satoshi Nakamoto and will reveal it within a week. McAfee first posted on his official Twitter account a few days ago and talked to Bloomberg that he will start dropping clues about Satoshi’s identity until either the Bitcoin creator steps out in the spotlight or McAfee reveals him. But now, he’s announced he’ll be backing off due to advice from his legal representatives.
In his first clues, McAfee said that it was not the CIA who made Bitcoin but a collective of people, one of which is Satoshi. Reportedly, Satoshi was the person who wrote the original white paper and he currently lives in the United States. McAfee also revealed that Satoshi’s very much alive and is no longer involved in Bitcoin.
However, following his first clues, McAfee was sent a letter from his lawyers that convinced him to stop the reveal as it could complicate his legal fight over his extradition to the US. He also said that he spoke to Satoshi, who is not “a happy camper” about McAfee’s attempts to out him.