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article imageBitcoin price trending up towards $9,500

By Ken Hanly     Apr 24, 2018 in Technology
According to a CoinDesk article, bitcoin (BTC) is being solidly bid today, April 24, and could be on its way for a test of the $10,000 mark and have recovered half of its value from its high close to $20,000 last December according to a chart analysis.
Bitcoin prices convincingly breaks $9,000 barrier
The CoinDesk article notes that just after midnight UTC bitcoin hit the highest level since March 14 in a spike to $9,308. As of this writing that mark has been breached. As reported in a Digital Journal article several days ago, the BTC price has breached the $9,000 mark several times only to drift back down below the barrier.
The price has also moved significantly above the long-term descending trendline. There is also a bullish daily relative strength index. The article sees resistance points at about $9,280 and $9,800 according to the daily chart analysis. $9,900 may also be a resistance point.
The one hour and 4-hour relative strength indices show overbought conditions a bearish signal. However, a 4-hour chart sees the bullish pattern continuing showing the possibility of a rally significantly above $10,000. This pattern is likely to prevail in spite of the overbought signs.
The CoinDesk article concludes with its view of the future: " BTC will likely cross the resistance around $9,280 in a convincing manner and test the 200-day moving average of $9,808 in the short-run. Acceptance above the long-term moving average would further strengthen the bull grip. In such a case, BTC may rise to $10,300 (bull pennant breakout target). Rejection at $9,280, despite the bull pennant breakout, followed by a drop below 8,930 could yield a pullback to $8,550 (ascending 10-day MA). Overall, the outlook remains bullish as long as BTC trades above the long-term descending trendline." The price has already crossed over the $9,289 resistance point in a convincing manner.
Present price situation
At 20:06 UTC the BTC price was $9,457.59 marginally off the days high. The price opened below the $9, 000 mark at $8,938.36. The low was just a few dollars less at $8,932 and the trend has been up all day so far with the high $9,458.37, just marginally higher than the present price.
It remains to be seen whether the price can break through the two other resistance points and breach $10,000, However, unless there is a sudden drop it should hit the $9,500 mark soon. The present price can be found here.
Bitcoin's price recovery
On March 14th bitcoin dropped in price a whopping $800 in just the one trading day and reached a one-month low of around $8,000. It did not stop there though but suffered further decline until on March 30 it hit a low of $6,593.
The price has risen 39 percent since that low. Bitcoin has now recovered close to half of its record high of close to $20,000 last December.
Why bitcoin price is rising
Fran Strajnar, CEO of Brave New Coin, a data and research firm concentrating on the blockchain and cryptographic assets markets said that bitcoin was trading up for a number of reasons. He thinks that one reason is that the fundamentals of the coin have improved. This includes improvements to its lightning network, and investors are coming back after some fear of regulations.
Strajnar said: "The U.S. is stepping in to regulate security tokens instead of commodity assets (utility) and we are seeing major value investors stepping into buy as a results." Security tokens are cryptocurrencies issued by startups similar to shares, while utility tokens are like coupons used for a specific service the issuer offers. Both can be traded on an exchange.
There are reports that George Soros' wealth management fund is moving into the cryptocurrency area. Rockefellers' also are moving into the area. Stajnar says the movement of established billionaires into the area legitimizes cryptocurrencies. He thinks that the odds of bitcoin getting an Exchange Traded Fund (ETF) approved by the Securities and Exchange Commission are improving.
Eiland Glover, the CEO of Kowala, a blockchain platform with its own cryptocurrency said: "Word is getting out that traditional financial industry players are preparing to enter the crypto trading markets soon."
Other signs of establishment acceptance of the cryptocurrency area is that Goldman Sachs is reported to have hired crypto trader Justin Schmidt, and Barclays is considering setting up a crypto trading desk.
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