A few days have passed, and not much has changed. Despite all the hoopla surrounding the bitcoin price’s recent rise to $620, a drop has occurred, and everyone’s favorite coin is still hovering in the low $600 range.
Also read: OKCoin to Blame for Bitcoin Price Retraction to $600?
“Bitcoin price trend remains up, but a downward correction prior to the next wave of advance remains likely… We’re waiting for price to either surge higher or make a surprise downward correction, but the market’s uncertainty to choose a direction keeps price action on a tightrope… Of course, we’d like to see an explosive upward price move here, but the downside risk remains.”
SolidX Adding Fuel to the Party?
And yet, despite what appears to be general indecisiveness, bitcoin is still expected to see a bull run shortly, thanks in large part to SolidX Management, LLC. The company has built what many believe will be the first Bitcoin ETF to operate via the stock market. The problem, however, is that the SEC is delaying approval.
Does the stock market fear a little friendly competition? For many, the idea of replacing stocks and bonds with bitcoin has become a normality, and the market has been considered an unstable investment platform since the Great Recession.
The SEC delay could last as long as 240 days, which increases doubt about whether or not it will receive approval. On the plus side, should the Bitcoin ETF be approved, many enthusiasts and analysts alike feel the move could double the bitcoin price within a short period, and bitcoin-holders could likely make a lot of money.
Director of Global Advisors Bitcoin Investment Daniel Masters says:
“Retail and equity investors, who wouldn’t or couldn’t go direct to the commodity markets, were prepared to invest in these vehicles. That, in turn, sucked physical commodities used to back the ETFs out of the markets in question, leading to price appreciation.”
And of course, the sentiment remains that bitcoin is likely to undergo further spikes, though they’re likely to occur in incremental stages. One analyst writes:
“Things have been pretty good to us as of late – we’ve had plenty of opportunities to get in and out of the markets according to our intraday strategy… We are looking almost certain to close out the week net positive on the bitcoin price markets. This is not guaranteed, of course. We might see some rough action this evening or as we head into Friday’s session and take a few stop hits on the day’s trading. So long as we keep our risk tight, however, and don’t break our own rules, it’s as close to a guaranteed winning week as we can get.”
How long will it be before the bitcoin price becomes $1,200? Post your comments below!
Image courtesy of crunchbase.com
