Bitcoin prices have been consolidating for much of today after rising above $16.000. (Photo by … [+]
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Bitcoin prices have been trading within a relatively well-defined range today, after surpassing the $16,000 level this morning.
The world’s most prominent digital currency climbed above $16,0o0 close to 5 a.m. EST, according to CoinDesk.
The cryptocurrency rose to more than $16,150, before falling back to roughly $15,600, additional CoinDesk figures show.
After that, bitcoin recovered, appreciating to nearly $16,200 before falling back to approximately $15,900.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Denis Vinokourov, head of research for London-based digital asset firm Bequant, described this price consolidation as “healthy,” stating:
“There is some congestion between the $16,170 and $17,150 zone (based off price action in 2017/18) but, ultimately, markets are looking to test all-time highs, and resistance before that looks futile, based on the current risk-on sentiment.”
“While the upside may have slowed somewhat, the ongoing rise in futures open interest, together with recovering Bitcoin hashrate and the fact that US elections are out of the way, points to further gains for Bitcoin and the broader market as a whole,” he added.
Jason Lau, COO of cryptocurrency exchange OKCoin, also weighed in.
“Bitcoin just cleared $16,000 for the first time in three years, confirming the existing bullish uptrend. It’s been a strong one, with six consecutive positive weekly closes.”
“Strong institutional interest (BTC futures open interest is at all time highs) and incoming retail flow (PayPal opened up crypto buys to all US users today) are providing continued fuel for this rally.”
“With minimal resistance until $20k, it’s hard to tell how the next few weeks will trade into year end, but signs are positive.”
Tim Enneking, managing director of Digital Capital Management, provided further input on bitcoin’s recent price movements.
He emphasized that while the cryptocurrency has been working through sell orders close to $16,000, market demographics have been shifting.
“The average BTC trader profile changes every 12-18 months or so,” said Enneking.
“The profile has now become much more institutional, more concentrated and more focused on ‘hodling’ rather than trading,” he stated.
“We are seeing the result: much less volatility, temporary correlation with equities markets as the new institutions were getting comfortable and familiar with the space, less attention to key psychological levels (those with lots of zeros) and, now, a steady increase in price.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
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