The price of bitcoin is once again breaking new all-time highs on Sunday, December 3, 2017. The decentralized currency has rebounded considerably as markets touched an average of US$11,800 after it dipped below the $10K region just five days ago.
Bitcoin’s Market Cap Is Steadily Approaching $200Bn
The bitcoin price train is moving northbound again, testing uncharted territories. Global trade volume has been high at roughly $5-7Bn traded every 24-hours for the past few days. At the moment one bitcoin is trading between $11,550-11,650 per BTC, and markets are up over 5 percent since yesterday. The top five currencies swapping the most BTC worldwide include JPY, USD, KRW, EUR, and USDT (Tether). Today’s trade volume is around $5.3Bn with Bitfinex, Bithumb, Hitbtc, GDAX, and Bitflyer capturing a vast majority of that share. Cryptocurrency proponents seem fairly optimistic right now as bitcoin has also helped push up the price of the top 14 digital assets, according to data website Coinmarketcap.
Technical Indicators
Looking at both the weekly and daily charts clearly indicates buyers are currently commanding the market action right now. Order books show two pretty sizable sell walls at $12K and $12250, so watch for resistance and sell-off around those price regions. Today the Simple Moving Averages (SMA) have a pretty extensive gap after crossing paths on December 2. Now the short term 100 SMA is well above the long-term 200 trendline which indicates the path of resistance is still on the upside.
Currently, RSI levels and Stochastic have started moving back north after showing signs of an oversold market and buyer exhaustion yesterday. If bearish sentiment sets in, order books show some strong foundations between $11,000-11,250 range. If the $11K region is broken, further sell-off could bring the price significantly lower into the $10500-10800 areas. If bulls manage to keep the pressure going, they have to surpass the resistance above and just below $12K, and it looks like they are attempting to tackle these zones soon.
Cryptocurrency Community Sentiment: Optimistic
Bitcoin enthusiasts are thrilled about the price, and there are a few reasons why we might be seeing more demand this week. First off, bitcoin had crossed the $10K and $11K territories a few times this week for the first time. As soon as the currency hit these price milestones, mainstream media pushed out headline after headline with stories about bitcoin’s phenomenal rise. More so than ever before the mainstream masses are hearing about bitcoin from the likes of the of the Wall Street Journal’s front page or hearing about it on the #1 sitcom in the world The Big Bang Theory this past Thursday. In addition to this, bitcoiners got some more good news after BTC dipped down to $9,200 region. This is because both CME Group and Cboe announced the dates of their new bitcoin-based futures products. Bitcoin proponents and traders believe the price could go even higher when these derivative markets open, but some skeptics fear Wall Street players could manipulate the price.
Digital Asset Markets, In General, Get Some Green Light Action
As we mentioned above the top fourteen highest cryptocurrency market cap coins are all in green. The total market cap of all the digital assets in existence is over $350Bn at the moment. Ethereum (ETH) markets are up 3.3 percent as one ETH is averaging around $480. The third highest market cap held by bitcoin cash (BCH) is up 12.2 percent right now with BCH prices hovering around $1,610 per token. Ripple (XRP) is also doing pretty well as markets have increased by 2.4 percent as XRP is around $0.26 at the time of writing. The number five position has been claimed by dash as the decentralized currency has performed phenomenally over the past two weeks. Dash is only up 1.7 percent at the moment but is currently averaging around $800 per token.
The Verdict
Markets are going wild right now, and it’s kinda tricky to watch some of the charts as order books are moving at a mile a minute. It’s safe to say that traders expect BTC to touch the $12K zone, but some spectators also believe a correction is overdue. The correction five days ago was deep, but some are expecting a bigger turnover on the next dip. For now, bulls have the market reigns, but the price may consolidate around the $11,200-11,400 range over the short term.
Bear Scenario: If bitcoin meets resistance and buyers get exhausted a drop below $11K could easily happen. Buy walls around the $11K through $11,200 regions are there but are small compared to lower foundations. If bears manage to push the price back down into the $10K price territory, we could see values between $10,500-10,800 and possibly lower.
Bull Scenario: Bulls have some work to do if they want to break the $12K region but that target is in sight. If buyers can keep the steam going and manage to crack the $12,000-12,250 zones, then some smooth sailing will take the price even higher. Fibonacci retracement at 61.8 percent shows prices could realize $12,700 if bulls can breach key resistance.
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