Supported by strong volumes, bitcoin prices sprinted to a five-week high of $4,875 last night before the move ran out of steam.
The bitcoin-U.S. dollar (BTC/USD) exchange rate spent 12 hours working hard to retake $4,800. However, at press time, bitcoin’s price had dropped to $4,770 – still up 12 percent in the last 24 hours. Week-on-week, the price is up 10 percent, while on a monthly basis, the cryptocurrency has seen 12 percent gains.
Indeed, despite the Chinese ban on ICOs as well as hints Russia may take new restrictive actions, bitcoin has been able to regain poise in a relatively short period of time. Less than a month ago, BTC had dropped to $2,980. As of now, bitcoin is only 4.8 percent short of its all-time high of $5,000 set in early September.
The stellar recovery could be attributed to an increased trading activity in Japan, South Korea and Hong Kong in the aftermath of Chinese crackdown. Speculation is also doing the rounds that fears of increasing ICO restrictions across the globe may have triggered a rotation of money out of ether and ethereum-based tokens and into bitcoin.
Currently, bitcoin looks set to revisit record highs.
Every time there is a crash in cryptocurrencies, the alarm bells ring out and panic often ensues.
People predict the end, see the bubble popping and sell off for a loss.
However, there is another way to look at it, and that is to see a significant drop as a buying opportunity and a chance to profit.
How to profit
There are a few ways to try and cash in on a sharp fall in price of cryptocurrencies. Some are more effective than others, and some more suitable for different types of crashes or currencies. It is up to the investor to decide.
There are five methods described below that can help turn a sickening crash into a chance to make more money than before.
A lot of these methods are well known, and almost cliched, but the real difficulty is not simply knowing them, it is being brave enough to enact them in the face of a collapsing market.
A group of Bitcoin companies plans to deploy a hard fork to double Bitcoin’s block weight limit to eight megabytes this November. Known as “SegWit2x,” this incompatible protocol change follows from the New York Agreement (NYA) and is embedded in the BTC1 software client.
SegWit2x is highly controversial. Most of Bitcoin’s development community, a number of other companies, some mining pools and — if public polls and futures markets are representative — a majority of users and the market are not on board with this hard fork. Some of them are even engaged in a sort of protest movement, under the banner “NO2X.”
For those who have not kept up with the debate, here’s an overview of the main arguments for and against the 2x hard fork part of SegWit2x.
The bitcoin-US dollar (BTC/USD) exchange rate is gaining altitude after the bearish Doji reversal seen earlier this week failed to keep the cryptocurrency below its 50-day moving average.
At press time, bitcoin is trading at $4,325; up 1.46 percent as per data from CoinMarketCap. The two-day sell-off ran out of steam earlier today at the low of $4,150. The subsequent rebound then gathered pace above the 50-day moving average of $4,187.
However, the rebound from the 50-day moving average support seen in the one hour indicates the fears over the event are overblown. So, is bitcoin set to fly high or is the rally a bull trap?
The price action analysis suggests the cryptocurrency is currently hovering in the no man’s land.
Bitcoin could hit $6,000 by year-end, experts said
But investors should brace for more volatility as another “fork” could take place
Bitcoin rose more than 74 percent in the third quarter
Bitcoin could rally nearly 40 percent to hit $6,000 before the end of the year but investors should brace for more volatility, according to industry experts.
The cryptocurrency was trading around $4,333 on Tuesday.
The third quarter has been one of the most eventful in bitcoin’s history. It is up over 74 percent in the September quarter, with a shifting landscape in regulation and developments in the underlying technology taking place in the last three months.