The Bitcoin price is rising once again, passing US$1,060 per BTC. Bitcoin’s value has consecutively stayed above $1,000 for 22 days.
Bitcoin’s 1K Consolidation
The price of bitcoin seems to have consolidated in the $1,000 range during most of February. Bitcoin’s fiat value kicked into high gear again on February 16, reaching a high of $1,040 over the course of the day. Technical indicators show that bulls have broke through resistance and have initiated an upward momentum. However, the 100-200 Simple Moving Average (SMA) and Stochastic indicators show bitcoin may be in overbought territory and bears could strike at any moment.
The past few weeks have been quite interesting as Chinese bitcoin exchange policies caused small hiccups in bitcoin trading markets. The leading exchanges in China have ceased offering margin lending, added fees to trades, and just recently halted BTC withdrawals for a month. Nonetheless, bitcoin’s price value still spiked even after BTCC announced halting withdrawals on February 16. Throughout all the chaotic tales from China, speculators and investors have been trying to predict bitcoin’s price course for 2017.
The well-known bitcoin price forecaster and entrepreneur Vinny Lingham expects the price to stay in the $1,000 range for a month or so. “This is largely what I’ve been saying,” explains Lingham on Twitter. “Volatility is decreasing. More time at $1k is needed. Maybe a month or two. Buy the dips, sell the rips.”
Patiently Waiting for Bitcoin ETFs
Many Bitcoiners have been waiting for the Securities and Exchange Commission (SEC) to approve a bitcoin exchange-traded fund (ETF). Currently, there are three ETFs waiting for SEC approval, which include the bitcoin trust dubbed COIN, Grayscale Investments bitcoin ETF, and another fund initiated by Solidx Partners. Whether or not SEC will approve a Bitcoin ETF may be revealed in March and many have speculated the price could spike if these funds are approved.
The investment banking and asset management firm Needham & Company has given insights on the bitcoin ETF possibilities alongside many others. Furthermore, Seeking Alpha has just published a thesis written by Emerita Capital, who believes if an ETF is approved in 2017 the price per BTC could reach $3,678. However, the company states the probability of approval is “35 percent against a 65 percent probability for rejection.” Moreover Emerita Capital believes the Trump administration may help approval as they explain in their thesis:
The Trump Administration is well known for its anti-regulation stance, as it was seen with the Dodd-Frank Act repeal. There are multiple pro-bitcoin enthusiasts involved in some way or another with the current US administration. — Trump’s entourage leans the balance towards a more accepting perspective for bitcoin.
Bitcoin’s Price Perseveres After China’s PBOC Scares
Throughout 2017, bitcoin’s fiat value has remained on a tear. This has happened as trading volumes in China have dipped significantly alongside other market players emerging like Japan. The price had dipped 15-20 percent in value during the initial PBOC inspections, and then the Chinese exchange withdrawal suspensions.
But bitcoin’s value has shown resilience rebounding back to above the $1,000 range and inching towards the currency’s all-time-high.
What do you think about bitcoin’s price trend at the moment? Let us know in the comments below.
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