Bitcoin price weekly analysis 4 June: Recovery in progress
A recovery looks to be in progress after a couple of bleak weeks for Bitcoin.
Key takeaways
- Price is up about 5% for the week.
- The 100-day moving average has passed the 200-day value, indicating a long-term recovery is in progress.
- A Danish bank suggests we could get to $100,000 by the end of 2018.
Bitcoin is slowly climbing again. Last week, the fear was that it might be heading down to the US$5,700 level. But despite some nervous moments last Tuesday, when the price dipped to $7,100, we've seen the bellwether coin work its way up.
This time last week, BTC was trading at around $7,230. After that dip to around $7,100, the market responded with a $300 jump and we've seen a repeating pattern of steady rises followed by a steep fall. But each rise is greater than the fall, resulting in an overall rise to around $7,600.
We're still some way from the highs we saw in early May, when $10,000 looked like a real target, but it seems the market is acting along some buy and sell orders based around those green candles we've seen over the last week.
Looking at longer term moves, the 100-day simple moving average (SMA) has crossed the 200 SMA. NewsBTC suggests this is a sign that "the path of least resistance is to the upside". In other words, they think the market is on the way up. Interestingly, they suggest the political unrest in Italy is having an impact on markets as people are seeing more risks in fiat currencies.
Looking at the upper and lower trend-lines for recent movements, FXStreet said we're on the way to $8,000 – something the last week-or-so's price movement suggests is well and truly on the cards.
As always, there are plenty of outrageous predictions around when it comes to bitcoin. Smarterum quoted Kay Van-Petersen, an analyst at the Danish Saxo Bank, who correctly predicted the massive price jump we saw with bitcoin last year. He's saying $100,000 is possible this year. Whether he's right two years in a row is anyone's guess.
Disclosure: At the time of writing, the author holds BTC, ETH, STR, LTC, BCC, ADA, XRP and ETN.
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