5 160 Bitcoin Buoyant As Price Sets New All Time High

0
18

Bitcoin is has reached a new all-time high today, with prices hitting a record $5,161.

At press time, the bitcoin-U.S. dollar (BTC/USD) exchange rate is trading at $5,130 levels. Week-on-week, BTC is up 18.75 percent, while month-on-month it’s up 23 percent.

Prices had dropped to a low of $2,980 after China banned token sales and local cryptocurrency exchanges ceased services as a result. The stellar ‘V’ shaped recovery from $2,980 could be attributed to pick-up in trading volumes in Japan, South Korea and other markets due to rotation of money out of the ether and ethereum-based coins and into bitcoin.

Increased institutional interest also appears to have played a role in boosting bitcoin prices. For example, earlier this month, news hit the wires that Goldman Sachs is considering a brand new operation which would be dedicated to bitcoin trading. A ‘bitcoin desk’ at Goldman Sachs would certainly be a game changer.

Still, while skeptics continue to call 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 Sep 15 low – Sep 18 high – Sep 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 $5378.56.
  • A healthy technical pull back cannot be ruled out, given the overbought conditions. On the downside, the key support levels to watch out for are $5000, $4809, $4500.

Space shuttle image 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.

Source: CoinDesk