The Bitcoin price keeps going up, and it doesn’t show signs of slowing down anytime soon. At this rate, according to technical projections, bitcoin will hit $1600 and beyond in a matter of weeks.
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Defying the Charts: Bitcoin Price Ignores All Technical Indicators and Reaches for the Moon
For several weeks, technical projections at Bitsonline had a heavily bearish outlook. Due to certain chart patterns, it looked like traders would start selling at any time, ultimately pushing the price to a $600 support level.
While the markets didn’t prove those projections wrong immediately, the pending decline never came. Instead, the bitcoin price opted for somewhat of a holding pattern, making small gains and eventually settling down in the $1000-$1200 range.
Last week, however, the bitcoin price finally broke $1300 — reaching a new all time high. For the rest of the week, the price fluctuated between $1300 and the $1340s.
This activity switched technical projections to mainly bullish, calling for highs of $1600. At Bitsonline, we said that the price needed to hold above $1250 to ensure a continued rally to $1600.
A day after that analysis’ publication, the price burst upward to $1400 — securing yet another historic high.
Only Going Up From Here?
Since breaking $1400, the trading community has become overwhelmingly convinced that bitcoin at least has a chance of hitting $1500. More bullish predictions have the price at previously unfathomable highs of $2000.
Looking at today’s (May 2) charts, we actually came pretty close to $1500. After hitting a peak of $1481 on Bitstamp, though, the price fell quickly into the $1430s. At press time, the price seems to be settling in the high $1420s.
What Caused the Sudden Spike?
While the digital currency has been on an overall upward trend since the start of 2016, the jump to $1400 and above came as a surprise to many.
CNBC writer Evelyn Cheng reported Tuesday morning that CoinDesk analyst Alex Sunnarborg credited the sudden 7 percent spike to a rise in trading volume from Japan.
Supporting that statement, our analysis at Bitsonline maintained that the upcoming bullish patterns had been generated by international traders hedging against political uncertainty. However, with a primary desire to protect wealth, our own analyst warned that the heights resulting from increased volume may not last.
Once the global political situation calms down — or traders decide another asset provides more security — the new, weak hands will liquidate their bitcoin holdings. If that happens, the price may go down as far as $600.
A more likely scenario is that weak hands exit and the price falls to a theoretical support at $850 before bouncing back to $1250. People in the trading communities have echoed this sentiment, seeing the $1200 range as a stable resting place if the markets can’t sustain bitcoin’s new highs.
As usual, Bitcoin enthusiasts and market spectators have formulated bullish, bearish and moderate predictions alike. The bitcoin price will do something eventually — either crashing or continuing to climb.
Until then, please keep your hands and feet inside the roller coaster at all times and enjoy the ride.
Will the bitcoin price hit $1600 or $2000 soon? Share your thoughts down below.
Images via Pixabay, CoinDesk