The bitcoin price has risen by $21 since our last price piece. The joy is spreading throughout the digital currency community, and enthusiasts are feeling the love. Some analysts seem to think that the fall of the Chinese yuan is responsible for this most recent rally.
“Bitcoin price staged a strong rally to break past the short-term channel top and aim for the longer-term resistance… Buyers are taking control of bitcoin price action… Moving averages are in line with the 4-hour bullish channel support at $610, adding to its strength as a floor. Bitcoin seems to have its sights set on the $650-655 area from here.”
Despite an air of positivity, this same analyst is predicting that bitcoin may once again enter bearish territory in the coming weeks:
“Bearish pressure could be returning as stochastic has already reached the overbought region. The oscillator has yet to turn down to indicate that sellers are gaining control of bitcoin price action, and are ready to push it back down towards support. If buyers keep going strong, a break past the $650 resistance could take place and spur a sharper climb.”
At the same time, other analysts are saying that bitcoin could potentially remain standing in the bullish territory through the rest of the year. It appears sources are split relatively down the middle on the topic of where Bitcoin will head, north or south, and this should come as no surprise to the rest of us.
Should We Thank the Chinese Yuan?
In the present moment, however, bitcoin appears to be doing alright for itself, possibly due to the continued devaluation of the Chinese yuan, which is once again receiving widespread attention. The yuan fell to a six-year low last Monday, and many are wondering if Beijing is “putting the currency back on a slow depreciation path.” After all, the yuan held a solid stance just last September, so why the sudden change?
One source mentions:
“A depreciating renminbi will fuel a rising Bitcoin price – albeit minimally. This may be continuous if Goldman Sachs Group’s warning that a rising amount of capital is exiting the country in yuan rather than in dollars is anything to go by.”
It’s yet another example of Asian influence over digital currency. Just last week we discussed heightened bitcoin publicity in India, and how the country could potentially increase public usage and the price in general. With China’s native currency falling yet again, Asia may be adding even more fuel to the fire.
Do you foresee bitcoin rising higher than ever in the coming weeks? Post your comments below!
Images courtesy of China Today, Global Risk Insights