Last week the price of bitcoin was trending downwards as bears controlled the market, pulling the price down to a low of US$920 per BTC on March 25. Currently, bitcoin’s value is once again ascending upwards over the past 24-hours reaching a high of $1068.
Also read: Bitcoin in Numbers — a Visual Look at Bitcoin Growth and Demand So Far in 2017
Bitcoin Price Weekly View
Bitcoin markets have been interesting to watch this week as technical indicators had shown much of the week was a seller’s market. The volatile price of bitcoin during the seven days dropped to a significant low breaking the psychological four digit price point. However, the downturn didn’t last long as another upward trend took bitcoin back above the $1,000 range on March 27. At the moment bulls seem to have found new entry points as buyers appear to be breaking resistance towards the $1,100 mark.
Technical indicators show the 100 Simple Moving Average (SMA) is trending higher than the 200 SMA, possibly indicating a continued price rise in the short term. Order books on popular exchanges like Bitstamp and Bitfinex show there is substantial resistance in the $1,100 range and it may take some time to break past that price point. Stochastic and the Relative Strength Index (RSI) also indicate that buyers may be back in the game for now, but in the long-term trends could change rather quickly. Bears can easily steal the spotlight once again and claw the price down back into the $900s as markets are still shaky and traders seem uncertain. For now, buyers have left the sidelines and have managed to push the price action upwards for the past 12-hours.
This Week’s Bitcoin Headlines
News from China’s central bank made headlines this week as authorities are reviewing new anti-money laundering (AML) guidelines for Chinese bitcoin trading platforms. Exchanges from the region are considering a 4-page proposal with strict AML procedures like “remote video verification” and “on-site identity verification” as well. A vast majority of Chinese bitcoin exchanges have still not lifted BTC withdrawal suspensions as parties from both sides work out the regulatory details.
Furthermore this week the Japanese authorities have revised some amendments to the ‘Payment Services Act’ which will require exchanges to enforce firmer Know Your Customer (KYC) regulation procedures. Exchanges such as Coincheck and Zaif have already informed customers via their websites that they will comply with the new KYC rules. This means Japanese bitcoin trading platforms will enforce identity verification frameworks in order to prevent the transfer of criminal proceeds.
This week many bitcoiners were either focused on the ongoing scaling debate or have been following the recent regulatory actions nation states are taking towards bitcoin. On a positive note, the “Big Four” multinational financial services firm Deloitte announced its in-house restaurant in Canada will now accept bitcoin for services. Iliana Oris Valiente, co-founder at Rubix by Deloitte told Bitcoin.com that “hundreds of Deloitte practitioners purchase their meals from Bistro 1858 every day,” and “many Deloitte professionals have shown excitement for the opportunity to start using bitcoin to buy their lunch and breakfast” from the restaurant.
Overall Cryptocurrency Markets
Combined cryptocurrency market capitalizations have pushed higher this week to over $24 billion. Additionally, bitcoin’s market dominance commands close to 70 percent of the entire market share as the percentage reverses last week’s downturn. The second highest market cap token, Ethereum, is still hovering above $50 per ether as its market has been stable for the past 48-hours. The price of Dash has seen a significant correction as the price hit a low of $83 per token this week. Ripple has stabilized just below a penny while other markets within the top ten are seeing small dips. Meanwhile, Litecoin has seen a price increase over the past two weeks and has risen above the $4 range.
The price per bitcoin is slowly trying to obtain the $1,100 range, but there will be some struggles along the way. Technical indicators are showing an upside, but the market still seems uncertain after the past two bear traps dragging the price below the 4-digit mark. Overall bitcoin’s price is up over 2.5 percent since the last dip, as market buys have picked up the pace.
Bear scenario: If bitcoin breaks under $1,000 once again short term support looks healthy in the $950-60 range. The past two downward slides this month reveal the market is trying to find a stable position after the March 10 ETF rejection. Traders will find that markets may continue to be slightly volatile over the course of the week if more key trend lines are broken.
Bull scenario: As of now the market is on the upside but nothing like the bull market that took place three weeks ago. The price per BTC could ascend past the $1,100 mark in the short term, but there is massive resistance above this range. If buyers continue to hold the market, then bitcoin’s price could slowly regain the bull market it was riding weeks prior.
What do you think about Bitcoin’s price trends at the moment? Do you think bitcoin can break above $1,100 again? Let us know in the comments below.
Disclaimer: Bitcoin price articles are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money”.
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