With the Sunday trading session over, things are looking well for Bitcoins, as the price is still holding to the $920 support it broke through on Saturday. With fewer bursts of volatility noted in the past week that were nowhere as violent as in the first days of 2017, it seems that Bitcoin is once again on a slow track to recovery, hopefully one that will restore faith in the cryptocurrency.
If there’s anything that the past several days can confirm is that the predictions about President Trump’s effect on the Bitcoin price look more real than ever, as ever since the notion of his inauguration started reaching the far corners of the world the price saw a much needed improvement after a period of strong instability.
But what’s really interesting to note is that Bitcoins, as much as they are advised against by the financial world, have become a commodity or a safe haven asset not only for the general population or Chinese investors, but also for a number of high-profile tech moguls. Namely, as the New Yorker reports, Bitcoins are frequently discussed as a doomsday failsafe among the inner circles of Silicon Valley’s rich and wary.
Bitcoin at $920; Bull Pressure Still Here
During the weekend, the price of Bitcoin mostly remained in the safe zone with only one notable drop during Sunday trading, which coincidently was the same day China’s three biggest exchanges announced trading fees. The highest point was on Sunday, when the price hit $930.87, only to drop to its lowest point of $890.48, five hours later.
The trading volume has also remained fairly consistent, reaching only slightly above $110 million during the weekend. It is currently at $105,532,000, a level that’s not large enough for stronger price pushes, while the market cap sits at $14.9 billion.
The market analysis shows buyers once again have the upper hand, as our technical indicators show the trading market is heavily pro-buy. All 12 moving averages are currently sending a buying signal, with 8 out of 12 technical oscillators showing the same trend. At this time, the analysis predicts a price increase, which for now will be slow and steady. As always, a close watch on the market is advised for any signs of trend changes, especially around Tuesday.
Chinese Exchanges Impose Trading Fees to Restrain Volatility
In the latest Bitcoin news from China, the three largest Bitcoin exchanges in China, Huobi, BTCC, and OkCoin, have issued statements on their websites on Sunday that they will start charging trading fees for Bitcoin transactions, effective this Tuesday. These Bitcoin exchanges were the same parties scrutinized by the PBOC (People’s Bank of China) and the ones allegedly tied to the recent BTC price drops.
The PBOC engaged in discussions with the Bitcoin exchanges a week ago over concerns of money laundering, market manipulations, and unregulated money outflow from the country, which prompted the exchanges to introduce fees as a way to assist the PBOC in cooling down the BTC market.
The official statements said that the introduction of 0.2% flat fee per transaction will help restrain the extreme volatility of Bitcoins and market manipulations from China’s side. Thus far, there have been no fees imposed in Chinese Bitcoin exchanges, allowing for the creation of the largest Bitcoin market in the world that’s responsible for nearly 42% of all Bitcoin transactions.