Bitcoin breaks back above US$11,000, may be set to rise even higher
There are plenty of reasons to be optimistic about bitcoin prices right now.
OPINION: Bitcoin has spent the last 24 hours sauntering up the price hill with relative ease, breaking US$11,000 twice in the last few hours and three times in the last week. Its typical hyper-volatility is still on full display though, with prices ping-ponging as low as about $9,400 and as high as about $11,200 in under 12 hours.
Over the last week, each rise above $11,000 has been followed by hard troughs, but this last break looks like it might see bitcoin riding above $11,000 for a bit longer than before – potentially entire hours.
Firstly, the prices have been steadily walking up over the last 24 hours, breaking $11,000 twice in the last few hours. Secondly, the uptick trade volume compared to the previous week suggests that bitcoin has a bit more body today than it did for its previous rises.
Any analyst will tell you that on a weekly basis, bitcoin prices show a distinct methamphetamine squirrel situation, but tighter focus on the last 24 hours paints a different picture, hinting at an emerging anticipatory mountain goat price pattern.
This rise of bitcoin from Thursday to Friday was also a lot gentler than the more extreme peaks near the start of the week. Coupled with the similarly steady growth in trade volume, that may or may not mean something.
The important thing is that it's visible to the naked eye. With most of the lines moving upwards, and more numbers being green in color than red in color, people have every reason to be excited. Animal spirits drive the market, so the significance of semi-coherent patterns in bitcoin's price charts cannot be overstated.
All factors carefully considered, a detailed analysis suggests that bitcoin prices will keep going up and down. Speculators who are banking on this notoriously volatile asset retaining both its volatility and its notoriety can probably look forward to further price changes, and more moving lines and changing colors, in the very near future.
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, SALT, BTC, NANO