Bitcoin’s 1K Consolidation
Bitcoin's Price Perseveres Above 4-Digit Sweet Spot
The price of bitcoin stayed above $1,000 for 22 days and counting. Image via Reddit user u/TRWNBC.
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.”