Just when we hoped to see yesterday’s surge continue and break through the $800 range, the price of Bitcoin is once again on familiar grounds. The bulls we predicted in our last update took their biggest charge yesterday, pumping up the value by $10 within a couple of hours and offering sellers another opportunity to turn profits at the highest peak. But even though the boost once again instilled hopes of the price pushing through a long-awaited resistance, it seems that the trading market has other plans.
Bears Pushing Price; Will it Hold?
The past 48 hours were anything but uneventful, as the price did another sudden jump towards the same range it tested during Sunday. The highest value was hit yesterday evening, when the value reached $749.20, but after a short period of ups-and-downs it set on a steady decline that at one time even dipped below $740. Ever since early morning it has remained stuck between the 735-740 range while sellers tried to push the market in a different direction.
Volume wise, the biggest traffic the trading market had was in the early morning hours when the price took its biggest dip. But while the trading volume has stayed close to $12 million since Monday, it dropped down to $85,403,300 in the last two hours, hinting that there would be less surprises, for the time being. The market cap, on the other hand, is slightly increased and now amounts to $11.9 billion.
Moving over to our technical analysis, the market shows worrying sign, with all indicators signaling that sellers have a firm grip on the market, with very little bullish pressure left. Out of 12 technical oscillators, 9 are pro-sell, while 10 out of 12 moving averages show the same picture.
However, the SMA 100 is still above the long term SMA 200 with a wide gap, indicating that a further dip downwards might not be the next path. Stochastic is also in the oversold zone, hinting that sellers might be getting tired soon. For the time being, the overall estimate is that the $735 support appears strong and the price doesn’t seem to be headed for another dip below this range, as long the seller pressure doesn’t continue.
Global Events Bring Blockchain its 10 Millionth Wallet
The key reason why we’ve seen so many sudden price boosts are believed by many to be the result of the ever-increasing interest of Chinese investors that was “forced” by the devaluation of the Yuan. This, combined with the demonetization efforts of the Indian government, is seen as a major influence over the Bitcoin price, as both events added to the growing perception of Bitcoins as a higher-yielding asset.
This increased interest in the foreign markets is what allowed the popular Bitcoin wallet Blockchain to reach a new milestone – its 10 millionth wallet. Only last year in February the Bitcoin startup reported having near to 3 million wallets, but this number has increased by more than 200% ever since. The company now claims to be the first Bitcoin wallet to achieve such high numbers and that they now hold over 50% of the wallet market.
According to their official newsletter, reaching this milestone is no coincidence. As the newsletter explains, major geopolitical events like the US elections, the Yuan devaluation and Brexit have all played a role in turning Bitcoin into a “safe haven” and lead to “unprecedented” traffic and transaction volumes on Blockhain’s website. According to Blockchain, Bitcoin is not only a protection against geopolitics, but also a way of ensuring a “better economic future”.