Skip to main content

$5,200: Bitcoin Buoyant as Price Sets New All-Time High

Bitcoin has hit a new all-time high today, with prices reaching $5,226 on the CoinDesk Bitcoin Price Index.
At press time, the bitcoin-U.S. dollar (BTC/USD) exchange rate is trading at $5,200 levels. Week-on-week, BTC is up 18.75 percent, while month-on-month it's up 23 percent. The new record broke a previous all-time high of $5,013 set in September.
ADVERTISEMENT
All in all, it's a sharp reversal of trend given the cryptocurrency dropped to a low of $2,980 in mid-September on the news China had banned token sales and that local cryptocurrency exchanges would shut in the aftermath. However, in subsequent days, bitcoin's price quickly regained, reportedly due to a pick-up in trading volumes in Japan, South Korea and other markets.
Increased institutional interest seems to have played a role in boosting bitcoin prices.
For example, a rumored "bitcoin desk" at Goldman Sachs would certainly be a game changer for the nascent market. Still, it's just the latest sign professional traders are increasingly interested in the market.
Further, even while skeptics continue to call the bitcoin rally a bubble, the price action analysis indicates no serious trouble ahead for the cryptocurrency.

Weekly chart


The chart above shows that:
  • Bitcoin is chipping away at $5,154 – resistance offered by 161.8 percent Fibonacci extension of the move from the April low – June high – July low.
  • The RSI is overbought, although it's not a cause for concern, as the indicator is still well below the highs seen in August and June.

Daily Chart


  • On the above chart, resistance is seen at $5,378.56 – 161.8 percent Fibonacci extension of the move from the Sept. 15 low – Sept. 18 high – Sept. 23 low.
  • The RSI is overbought.
  • All major moving averages – 50-day moving average, 100-day moving average and 200-day moving average – are perfectly aligned one below the other, which indicates the long-run trend is bullish.

View

  • A break above $5,154 would open doors for $5,378.56.
  • A healthy technical pullback cannot be ruled out, given the overbought conditions. On the downside, the key support levels to watch out for are $5,000, $4,809, $4,500.
Water ballons via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.


Load Comments

Comments

Popular posts from this blog

Case-By-Case or Cease-and-Desist? In Search Of a New Approach to ICOs

That rumble you hear is the sound of regulators around the world mobilizing resources to tackle the pressing matter of token sales. Yet, in spite of the spectacular growth of blockchain token-based funding, no one seems to have a clear idea of what type of rules to introduce. The resulting uncertainty (not to mention ridicule) is left hindering progress as money flows to unviable projects and investors are left vulnerable to foul play – exactly what regulation is supposed to prevent. Perhaps a new approach is needed. But to see where this could go, it's worth stepping back and asking what we expect the regulation to do. Safety belt First, why do we need regulation, not just of finance, but of anything at all? To protect us. At its roots, that is the main role of government – to protect its citizens from avoidable harm and extreme loss brought about by others or from our own lack of common sense. When it comes to securities, that usually means stopping us from making poor decisions…

Frequently asked questions about Bitcoin

What is Bitcoin? Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping systemin existence. Who created Bitcoin? Bitcoin is the first implementation of a concept called crypto-currency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing much about himself. The community has since grown exponentially with many developers w…

Is Bitcoin Legal?

Bitcoin is of interest to law enforcement agencies, tax authorities, and legal regulators, all of which are trying to understand how the cryptocurrency fits into existing frameworks. The legality of your bitcoin activities will depend on who you are, where you live, and what you are doing with it. Bitcoin has proven to be a contentious issue for regulators and law enforcers, both of which have targeted the digital currency in an attempt to control its use. We are still early on in the game, and many legal authorities are still struggling to understand the cryptocurrency, let alone make laws around it. Amid all this uncertainty, one question stands out: is bitcoin legal? The answer is, yes, depending on what you’re doing with it. Read on for our guide to the complex legal landscape surrounding bitcoin. Most of the discussion concerns the US, where many of the legal dramas are currently playing out. Alternatively, you can access our comprehensive Regulation Report for worldwide expert …