Following a heavy drop, the bitcoin price showed signs of recovery last week when it ascended to $590. Now, bitcoin has dropped again and is hovering around $580 at press time.
Also read: Silk Road Auction Could Help Bitcoin Price Bounce Back
Bitcoin Price Still Bullish?
Bitcoin has likely found a comfortable place to reside for the time being. All that climbing and falling is sure to take a toll on one’s energy, and bitcoin is no exception. After nearly two weeks, the price seems to be shifting only slightly within the range of $580 and $590.
One source explains that bitcoin is now competing against the U.S. dollar, which seems to be doing better in the value department. The platform states:
“US equities ended in the green once more, renewing demand for the dollar versus other assets such as bitcoin. Economic reports from the US have been surpassing expectation these days, keeping hopes up for a Fed interest rate hike in September or December… If the actual readings beat expectations, the US dollar could gain more traction in its climb.”
With a spike in the dollar’s value, we’re likely to see potential rises in additional currencies such as the Chinese yuan and Japanese yen. When fiats take off, bitcoin and related altcoins usually stumble.
However, other analysts are more optimistic. Bitcoinist.net explains that the price is in for a steady rise in the coming months, and traders should expect an oncoming bull-run:
“The bitcoin price is beginning a reversal pattern to the $700 level, where a congestion area should reinforce quotes for another climb to $820. Now at the $580 support level, prices are starting to form an upward reversal pattern, which will allow pull back to $700… The current trading box we are considering was built according to the ended rounded bottom first pattern with the 28 percent and 62 percent Fibonacci retracement theory – it seems to be working so far. The next stage could be an upward rally into the new technical cycle. Now, after a plunge to the support at $580-$600, a new bullish consensus is expected to provide the concurrent elements that ensure a change in the current trend.”
Despite thoughts of a rise, the same analyst suggests that traders wait to take action until the price hits $600:
“Average traders should wait for quotes to reach $600 before buying. Doing so will allow them to take advantage of the initial rebound to $700, which should lead into a new bull cycle to $820, where the box resistance is still waiting on the quotes.”
Is bitcoin in for a massive spike? Post your thoughts and comments below!
Images courtesy of Wikimedia Commons, Bitcoin.com.