The year is not over yet and Bitcoin has already exceeded all expectations. There was hope that by the end of the year, Bitcoin will hit the 8,000 price and probably exceed that. Well, with slightly more than a month until the end of the year, Bitcoin investors are smiling all the way to the bank as the price stands at $8,700 today. This is a big relief considering that a few days ago; Bitcoin price had gone down to below $8,000. It made its bounce back by trading at $8,200 earlier today to stand at its current price a few hours ago.
The past 24 hours have been very busy for the Bitcoin with Bitcoin platforms from across the globe swapping around $4.4 billion worth of Bitcoin. When the price started climbing this morning from $8, 200, the expectation was they would not go far but rather stop there. The price however continued climbing up. The dominating currency in today’s trading is the Japanese Yen at 57% followed very closely by the US Dollar, which holds the fifth position in global volume. The South Korean won, makes it to the trails the top three trading currencies. Exchanges made a large profit out of today’s trading with the top five being Bithumb, hitbtc, Poloniex, GDAX and Bitfinex. Altcoins getting stronger has largely had an impact on Bitcoins dominance, which stands at 52% of all the cryptocurrencies in the market.
What is driving up the price surge?
Buyers are totally in control of all Bitcoin markets at this time. A look at the charts show that simple moving average and the long-term moving average are at par. When there was a drop in Bitcoin price, the two averages came together but with the prices up again, the two are bound to spread. This might see the simple moving average go above the long-term moving average. This is a good indication clearly showing that an upside is on the way. There is also alot6 of optimisms from every corner and if this goes on, there is very clear indication that the target by the end of the year is now $9150 or sometime next year. There could be a resistant on the$9,000 mark as shown by the order books. If it comes to this, a stalemate at $9,000, a few sell-offs could take place.
How the Other Cryptocurrencies are behaving
You may think that it is only Bitcoin doing extremely well at the moment. On the contrary, almost all other digital currencies are doing as well. Ethereum price for example also shot up from $470 to now trade at slightly less than $500. Bitcoin cash, which a few weeks ago was a force to reckon is doing great too. It had an extremely successful week. This was due to the South Korean markets pushing its price well above the $1,700 mark. Bitcoin cash markets are down today by 3% seeing the price per token go to $1,600 all across exchanges from all over the world. Ripple is also up by 3% selling at $0.24 per Ripple.
Litecoin is out of the best performing five digital currencies with its position now taken by Dash. Dash is up by 10% with the price standing at $620. Even though Litecoin price is also up by 11% with the current price at $83, it did not perform as well as dash did thus losing its position.
Bull vs Bear Scenarios
The bear scenario indicates that the bearish market could lead to a downward trend ending up in the $7,900 mark while the bull scenario indicates the likelihood of the price breaking up to $8,800 soon. With over excited buyers in the market currently, the price could exceed the $9,000 mark and hover around $9150.
There is a lot of excitement and optimism surrounding Bitcoin trading now. The excitement does not end with Bitcoin but all the digital currencies. As the year ends, all the cryptocurrencies are trading well. The overall cryptocurrency market capitalization is slowly edging to the $300 billion US Dollar mark. Before the end of next week, most likely the cryptocurrencies will reach that mark.
Whichever way you look at it, digital currency continues to win.