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article imageBitcoin breaks through $11,000 but then falls back

By Ken Hanly     Mar 2, 2018 in Technology
A recent report from Coindesk shows that the price of bitcoin had risen about 19 percent from its weekly low of $9,304.68. It had recovered five percent just over a period of 24 hours.
Cryptocoin tether being used to trade bitcoins
The highest volumes are on BTC/USDT -bitcoin tether- pairs on the exchange OKEx. Three out of ten of the biggest exchanges offer the pairing. Tether is pegged to the U.S. dollar and stays near the value of one U.S. dollar for each tether. Traders may use it for its low volatility and in lieu of the U.S. dollar.
Bitcoin trading volume
Although 24-hour trading volume was $8.4 billion the highest since Feb. 21st the number does not appear large when compared with the average daily January volume that was $13.4 billion.
This morning, bitcoin breached the $11,000 level but dropped quickly back into the $10,000 level. At 19:27 UTC the price was around $10,867.
Price chart analysis
Coindesk has a technical analysis of several charts.
The analysis notes that stagnant volumes are a cause for concern but the chances for a breakout have improved according to the analysis. Yesterday's close above both the five-day and 10-day moving average (MA) favors those who take a bullish view of the moves. The relative strength index (RSI) also has moved higher, another bullish sign.
However the analysis concludes, "yesterday's price gains were not backed by strong volumes and the retreat from the intraday high of $11,189 to $10,900 seen today has neutralized the immediate bullish outlook."
Future outlook
For the future several scenarios are set out: A high volume break above $11,610 (inverse head-and-shoulders breakout) would open the doors for a rally to $17,000-$17,400. Meanwhile, a drop below the descending trendline support of $10,000 (on the linear chart) would signal bullish invalidation. Bearish scenario: As discussed yesterday, a daily close below $9,280.4 (Feb. 25 low) could yield a sell-off to $6,500-$6,000.
Naeem Aslam, chief market analyst at ThinkCoin does not think bitcoin is at the start of a comeback: ”A break of $15k would really send the signal that the cryptocurrency is back in business, but we are far off from that level.The biggest question among investors is if the cryptocurrency would make a comeback.”
U.S. government making money from bitcoin
The U.S. government is considering confiscation of 500 bitcoins from four culprits charged with creating fake identification documents. The Ohio Department of Justice claims the four produced and transferred fake documents including drivers' licences and personal identification cards from Ohio, Michigan and Utah.
Over nearly five years the four netted 500 bitcoins in proceeds worth about $5.5 million now. The prosecutors have asked that those charged forfeit the coins. The coins would likely be auctioned in public.
The U.S. Marshals Service held an auction of 3,600 bitcoins in January. The last sale was of 2,700 bitcoins in 2016. In 2014 the Service also auctioned off 50,000 bitcoins forefeited by Ross Ulbricht of the dark web Silk Road.
UPDATE: As of 20:59 UTC bitcoin was back up about $11,000 at about $1,056.
More about bitcoin price, cryptocurrencies, coindesk
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