The upside move in bitcoin has gathered traction this weekend as investors brace up for BTC futures launch by the CME.
As per CoinDesk's Bitcoin Price Index (BPI), the world's largest cryptocurrency by market capitalization rose to a new all-time high of $19,783.06 at 12:14 UTC today. Bitcoin (BTC) has appreciated by 10 percent in the last 24 hours as per the data source CoinMarketCap. A year ago, it traded below $1,000.
The move towards $20,000 is in line with the bull flag breakout discussed last week. Prices moved above $16,000 in a convincing manner after the CBOE launched the first BTC futures contract at 23:00 GMT last Sunday. The CME is set to launch its own version today.
A major part of the rally from $6,000 (Nov. lows) could be attributed to speculation that a move to the mainstream via BTC futures listing on the CME and CBOE would open doors to yield-hungry institutional money.
So, the cryptocurrency might come under pressure this week due to "sell the news" trading following the futures listing on the CME. Also, the prices chart analysis says there is merit in being cautiously bullish on the cryptocurrency.
Bitcoin 4-hour chart
The above chart (prices as per Coinbase) shows:
Bull flag breakout on Dec. 10 and a bullish follow-through
Rounding bottom pattern along the rising trend line and a bullish break above $18,000
Clearly, the bulls are in control and could take prices well above the $20,000 mark. Comments on social media show a significant portion of the investor community is expecting the cryptocurrency to test $24,000 in the short-run.
View
The technical studies, except the overbought conditions as shown by the relative strength index, favor further upside in bitcoin.
Still, a risk of "sell the news" trading cannot be ruled out. In such a case, prices could test the upward sloping 4-hour 50-MA and 100-MA of $17,000 and $14,850, respectively.
@www.coindesk.com is quoted from
The rise comes as the Chicago Mercantile Exchange is poised to become the second exchange to offer Bitcoin futures. These will allow new institutional investors to speculate on the value of digital currency.
At the same time, the network seems to be a victim of its success. After having passed the 120,000 mark, the number of transactions waiting to be confirmed by minors was still very high, as were the costs associated with them. Figures that make it difficult to use Bitcoin for daily transactions, and that slow down its democratization.
But an answer to these problems could be made next year, with the arrival of the Lightning Network. This will be able to move transactions "outside the chain", to unclog the Bitcoin network.
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now we can observe the correction of the bitcoin course, and it is unclear how it will be in next mountg