Price of Bitcoin has jumped more than 70% in only a month and, as CNBC put it, nobody knows why. Yes, there were some positive events we’ve covered already in our previous posts, but those events are far from enough to cause such an incredible value boost. The value of Bitcoin even surpassed $500 for a brief moment on popular Bitcoin exchange Bistamp.
Bitcoin has even caught the attention of mainstream media and economy experts since it seems almost unexplainable how the struggling digital currency managed to set a new record high for 2015. Only yesterday it hit the $400 and while everyone was speculating whether $450 per coin could become reality this week or not, the Bitcoin breached the $460 threshold.
These recent gains are surely welcomed by traders who never lost faith in the Bitcoin since only several months ago the value of the virtual currency was under $200. We can now say that the horror days can be forgotten as the Bitcoin confidently marches towards new price milestones with each passing day.
Bitcoin Rushing Towards $500 Mark
Saying that Bitcoin is moving towards the $500 mark on our price chart would be an understatement; the virtual currency is literally rushing to reach yet another record breaking high for this year and the $500 line has already been breached on Bitstamp. If we are going to remember the first half of 2015 as a very bad period for the Bitcoin, we will certainly remember these last months of the year as a true phenomenon.
Currently, the Bitcoin is trading for $462.38 per coin and that’s the day’s highest Bitcoin value as well. The day low is unbelievable $350.61, which resulted with an impressive jump of the market cap; at the time of this writing the market cap was $6.5 B. The volatility is still moving between 17% and 18%, a thing that can’t be said for the year to date change and the volume. These two rocketed overnight and have respective values of 47.35% and 346,652.37.
In order to understand better the shock we had when we saw these numbers, you have to know that only a day ago the market cap was $5.28 B, the volume was 201,797 and the year to date change was 19.66%. This means that some of these values were doubled in the course of only 24 hours.
Overbuying May Soon Become a Problem
There’s no question that most technical indicators and moving averages signal that buying is the smartest move Bitcoin traders can make right now. However, many indicators show overbuying may soon become a problem, because usually when there’s overbuying, the price might fall.
Nevertheless, we choose to believe that the bulls can’t be stopped and that our favourite virtual currency won’t get tired of this constant struggle to grow.
So, let’s first see which indicators should cause worry; the 14-day RSI, STOCHRSI, CCI, Williams %R and the ultimate oscillator are neutral and show that traders are massively buying Bitcoins.
On the other hand, we have the MACD (18.580), the highs/lows (37.5771), the ROC (18.227) and three other indicators that still indicate buying is the best option. Additionally, all simple and exponential moving averages are recommending traders to buy. Today’s intraday support level is $420 and the intraday resistance level is $500.
Whether we will see the Bitcoin breaching $500 on our chart or not remains to be seen; nevertheless, we would dare to say that such thing might happen as soon as today.