Bitcoin price weekly analysis: A strong week followed by profit taking
Five days of gains end with a sell off and a slight price correction.
- A week of gains ends with a price fall as short termers take profits and run
- Close to cracking US$10,000 before the price took a hit
- Market cap up by about US$3 billion across the week
Bitcoin started the week at around US$9,300, peaked at a little over US$9,900 early on the weekend before dropping to US$9,500. It's currently trading at around US$9,700 with the beginning of an upward trend appearing.
Market capitalisation followed the same pattern, starting the week at just under US$160 billion, almost reaching US$170 billion before dropping back to around US$163 billion. Trading volumes peaked last Thursday as the price started to rise before settling in the low US$160-billion range over the weekend. This has stayed the same so far today.
After the tumultuous fall of January, when the price of bitcoin and most other coins took a beating after a rapid rise, I'm loathe to make any long-term predictions. But based on current trends and what I'm seeing from various analysts and advisors, it seems that bitcoin is set to hold about $9,000 for quite a while and, potentially even about $9,500 judging by current trends.
Overall, the bitcoin trend lines are positive, and falls such as we saw over the last 48 hours or so are part of the "two steps forward, one step back" trend we've seen over recent weeks.
We've seen some strong growth in bitcoin over the last few weeks. We reported last week on bitcoin's recent rise from around $6,600. Now that the price is up by over 50% over recent weeks, it's not surprising to see some traders turn that bull run into real, and not paper, profit.
TradingView suggests that the next step up where the price will stabilise will be between US$10,800 and US$11,000.
CCN says that when bitcoin's price fell by nearly 10% after getting close to the US$10,000 mark, it dropped from US$9,800 to US$8,800 within a single day. But over the past 24 hours, bitcoin's price only dropped by US$400 after testing US$10,000. They say this shows bitcoin has gained stability in the US$9,500 region and can bounce back after large sell offs.
That makes sense looking at what's happened over the last few days. While there has been a drop, it hasn't been as precipitous as other times, and there are signs of the fall being arrested and the price recovering.
Disclosure: At the time of writing, the author holds XLM, BTC, EOS, NEO, ETH and XRP.
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