A great day for Bitcoin traders, as what started off as a risky week that might have turned things the other way is shaping up to be a positive time for Bitcoins. After the market was taken over by sellers fueled by fears of new regulations that were allegedly being prepared in China, things have picked up in the last 24 hours in what is one of the quickest boosts we’ve seen the past few months. Sparked by the unpredicted twist the US political scene brought this morning, Bitcoin has once again proven to be a refuge for investors, just like gold is.
Trump Sends Global Markets Sinking
The key reason for such a positive increase was found by many experts to be in Donald Trump’s win in the 2016 US presidential elections. Ever since he became a viable candidate, financial experts were predicting a market turmoil that would plunge traditional currencies, at least momentarily, while the world recovers from the shock. And just like it was predicted, the US dollar and Mexican Peso took a steep dive this morning, as news of the electoral outcome started spreading across the globe.
Coinciding with the loss of value of traditional money, the price of Bitcoin has rapidly grown in the past day, noting a $25+ increase in just a couple of hours. A similar scenario happened in the wake of the Brexit aftermath, where the price saw an ever bigger boost of over $75 in a single day. However, as welcomed as the increase is, in most cases fast pushes are only temporary until the markets normalize. Thus, how long and if the value will stick will be up to the trading trends.
Will the Price Continue Climbing?
After sticking closely to the $700 mark for the past several days, the price of Bitcoin went on a fast climb upwards, about the same time the first news of Trump’s lead started spreading. In the early morning hours, when the first results started coming in, the price went from $704.30 to $731.90 in the course of only 4 hours, while the dollar went down. However, things have been quieter following the push and the price has been consolidating around $730.
Whenever such financial turmoil occurs, it makes difficult to predict future trends. While most of us may hope for further increases, the market doesn’t always mind our wishes. The current trading volume shows promising signs though, indicating a spike in trading interest. Almost double in size and currently at $133,713,000, it seems that further price increases are not off the table at this time. The market cap, on the other hand, is at $11.7 billion.
The current state of the trading market is entirely faced towards buying, with all of our indicators leaning heavily in this direction. Out of 12 technical oscillators, 9 send a buying signal, while only 2 remain neutral. The situation is even clearer when you look at the moving averages, all 12 of which are pro-buy. The bottom line here is that bulls are pushing heavily on the market at this time, which is always a sign of the prices driving past another resistance.
All the way since morning, the price has been fluctuating mildly and sticking to the $730 support. It is way past the SMA 200, which indicates that there would be no downward crossovers soon. Judging by the current winds, the price seems headed for consolidation, for now. If buyers persist we might see the value break $750, but if bears return, it will likely head towards $710.