The price of bitcoin continues to ascend upwards reaching new highs during the end of April. Last week our markets update revealed bitcoin markets experienced a slight bearish hiccup as the price per BTC dropped to a low of $1140. Now the value has been steadily progressing back up over the past three days breaking key resistance and currently testing new levels at $1260 per BTC, at the time of writing.
Bitcoin Price Weekly View: Bulls Take Charge
Another exciting week has passed in the world of cryptocurrency markets and trading. Bitcoin’s market value is on the move again as the digital asset has broken into a higher price territory hovering at $1240-1260 per BTC, depending on which exchange price you observe. Traders have noticed a significant difference in price spreads across global exchanges but most notably the price on the Bitfinex exchange. On April 20 the price per BTC hit a high of $1336 on Bitfinex as the price was $90 higher than most exchanges. Price spreads remain inconsistent at press time as Bitfinex prices reveal a $1320 per BTC average over the past four hours.
Technical indicators show the bullish price run may continue as bitcoin charts show the 100 Simple Moving Average (SMA) is still well above the 200 SMA, indicating higher price levels are possible. Order books across many exchanges indicate buyers are in control, but there is key resistance around the $1300 mark. The Relative Strength Indicator (RSI) also shows the upswing is looking to test new levels, but the Stochastic analysis suggests bitcoin is getting psychologically expensive and sellers could step in at any moment. For now, bulls have the market for the time being, and a few more spikes seem likely in the short term.
Bitcoin Market News: What’s up With the Bitfinex Price?
Over the past few days, most of the cryptocurrency community has been following the developments with the exchange Bitfinex. Currently, the exchange has halted most fiat withdrawals and has explained it is having issues with banking partners. One would think the news of Bitfinex not allowing withdrawals would affect the price negatively but the opposite happened. Instead, the global average of bitcoin’s price continued to rise and oddly enough significantly higher on Bitfinex.
Some skeptics within the community have compared the different price spreads to the Mt Gox prices of 2013. On April 20 the exchange made an announcement about the banking issues and dismissing rumors of insolvency stating;
Bitfinex is not alone in the bitcoin community in confronting challenges presented by correspondent banks; other exchanges in the digital currency ecosystem are also being affected — We want to be absolutely clear here that Bitfinex is solvent. We have assets that exceed all user balances.
Total Cryptocurrency Market Capitalizations Close in on $30 Billion
Overall cryptocurrency markets are currently capturing record highs of $29.6 billion with an average of $600 million in daily trade volume. The second largest valued market Ethereum is currently encompassing $4.4 billion of the overall market share with a price at $48 per ether. Ripple (XRP) markets have dipped to a low of under 3 cents per XRP, but the digital currency still holds the third highest market capitalization.
The fourth runner-up Litecoin is currently experiencing a bull run after hitting a low of $9.50 per LTC but is now averaging over $11 per token. The LTC price rise could possibly be attributed to the Litecoin Global Roundtable Resolution a roundtable meeting dedicated to the scaling discussion. Dash markets seem uncertain as the digital currency has tried to test new levels but has been kept pushed down. Currently, Dash is around $70 each and has a market cap of around $547 million.
Most of the other altcoins in the top ten are doing well seeing price rises between 20-30 percent. For instance, Ethereum Classic is reaching new highs at $3.25 per ETC at press time. Alongside this three new cryptocurrencies are close to joining the cryptocurrency top ten which include PIVX, Golem, and Zcash.
The Verdict
Many bitcoin proponents are excited about this month’s bull run, but the unusual market spreads have made people uncertain. Plenty of people have attributed the price success to Japan’s recent digital currency legislation alongside growing demand in countries like India. Traders will be watching the exchanges Bitfinex, Okcoin, and BTC-e as all of them seem to be experiencing banking issues. Furthermore many continue to wonder when Chinese exchanges will reinstate withdrawals as well, as people are growing concerned with the regulatory bumps in the road worldwide.
Bear Scenario: If there is an upcoming correction in price coming, it looks like bitcoin could hold steady between the $1150-1180 range again. There’s quite a bit of support in that price territory, and Stochastic indicators show buyers may jump to the sidelines in the short term. Inconsistent price spreads also indicate as they have in the past a negative downturn could happen at any moment.
Bull Scenario: Bitcoin’s price can very well rise above the $1300 price range across other global exchanges disregarding the current wacky price displayed on Bitfinex charts. SMA and RSI technical indicators and order books show the bull run should continue for the short term and into the weekend. Traders on Trading View and other forums seem to agree bitcoin’s price is still “long.”
