It’s time once again for another Bitcoin price forecast. Several days ago Bitcoin hit a low reminiscent of the middle of November last year. People freaked out. Many, mostly in traditional financial sectors, talked about the bubble bursting. The sky was falling, the world was ending. And then, it wasn’t and now things are better.
2018 had not been kind to cryptos making any kind of Bitcoin price forecast a tough sell. However, the past few days have seen a ray of sunshine in the form of the U.S. government. Shocking, right? In congressional hearings the heads of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) had positive things to say. Their testimonies showed that they have at least a passing understanding of blockchain technology and cryptocurrencies.
They essentially broke it down to a policy of do no harm and light regulation in order to spur technological innovation. That morning, making a Bitcoin price forecast was super easy, it was going to go up. It did. Bitcoin perked up to around $7,800. Then the next day it peaked at $8,500 before closing lower. Yesterday, it again touched $8,500 and closed just under it.
So what is the next big Bitcoin price move? Barring any drastic negative news, things should continue positively. We seem to have entered a period of consolidation where a new new local high was followed by a higher low and another higher high was followed by another higher low.
That type of consolidation shows that maybe the bear run is over and the sell off has ended. There was also a marked increase in volume when Bitcoin dropped under $7,000. It has now settled back into a lower volume period. On Tuesday, volume just missed $14B for the day. Meanwhile, every day around it has been around $9B.
Looking at a 4-hour chart of Bitcoin price shows that a third period of buying over selling is about to close. Volume is quite low right now but hopefully the upward trend will continue to build momentum.
This past six weeks was tough to do a Bitcoin price forecast. It seemed that any time the price might turn around or that the sell off might stop, bad news showed up. This trend continued all through January and February did not start much different. Until this week.
The SEC and the CFTC testimonies definitely helped stem the flow. There was worry over China cracking down and banning cryptocurrencies. Now it seems to have been the work of a hacker. The South China Morning Post first reported on Wednesday that the email was not sent by the the Chinese central bank. There is no event scheduled for February 14th in which China would announce a ban on cryptocurrencies.
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Those two items mean that many are creating a Bitcoin price forecast with a fast upward climb. Right now Bitcoin is trading just above the volume weighted average price, but far below the 100-day moving average (MA). Bitcoin is moving generally toward MA though. It seems like the next twelve hours could decide what happens. A continued upward trend could be a sign that we are ready for another bull run on Bitcoin price.
Now, remember this is all information, not financial or investment advice. We are only analyzing some aspects of the entire market. We are not advisers and one should do their own research before investing in anything.