It seems that the panic-induced storm that hit the Bitcoin market is coming to an end, as the price of the world’s number one cryptocurrency has once again broken over $900, only a few days after suffering a $200 price drop. And while two days ago the market was heavily shaken by sellers, the current analysis shows a different picture – one that gives hope of seeing fewer surprises ahead.
The high fluctuations over short time frames only serve to fortify the view on Bitcoins as being not a replacement for traditional currency, but more of an asset that you can invest in, just like gold. This new stance is now being accepted, according to the Forbes, by even as well-established futures exchanges like the CME Group, who have been offering asset trading in anything from bonds to energy resources for over a century.
In short, the CME group will now be offering a Bitcoin Real Time Index and Reference Rate for those interested in trading, since, according to Executive Director of digitization, Sandra Ro, the company has always been about discovering asset markets. One of the main reasons for this change, she says, is Bitcoin’s investment potential and its use to move around value.
Bitcoin Breaks $900
After fluctuating around the $890 mark for a few days, this early morning the price was taken over $900 on a gradual wave that started right after midnight. It seems that the sell-off of big positions is finally at a halt, most probably due to the subdued panic which the news of Anti- Money Laundering checks in Chinese exchanges started.
Currently, the trading volume is fairly low, at $110,888,000, which only serves to confirm that the panic wave is taking a pause, but also crushes most hopes of any major price boosts, at this time. The market cap, on the other hand, is at $14.7 billion.
Our market analysis shows that bulls are picking up momentum, with 8 out of 12 moving averages and 6 out of 12 indicators sending a buying signal. The SMA 100 is still over the SMA 200, which hints that an upwards path is the most probable, although the Stochastic shows that bears are still keeping their grip.
Our analysis shows that the market is in favor of buyers, but still not entirely. The price seems headed for consolidation near the $900 mark, as long as a stronger change in tide doesn’t happen. If it does, we might see a push beyond $910 or below $890, depending on the winds.
China Not to Regulate Bitcoin, Yet
It seems that all the speculation about Bitcoin regulations in China we’ve been hearing for the past months can be put at rest, for the moment, as new light was shed on the recent talks between the People’s Bank of China (PBOC) and Bitcoin exchanges in the country. According to the latest information, it seems that the cryptocurrency will not be subject to any new regulations at this time.
Namely, after news spread of Bitcoin exchanges engaging in talks with the Chinese authorities, the Bitcoin community started buzzing with fears of price crashes due to panic from Asian markets. However, recent news reveals that these talks were only conducted to reinstate the importance of current regulations and not the prospect of any new ones.
But this is not to say that there will be none in the future. After all, China is the number one country by Bitcoin trading volume – a trend which, if continued, is likely to stimulate Chinese authorities to draft new regulations.