Bitcoin prices look set to recover some of the ground lost over the end of 2017, with analysis showing the potential for a renewed bull run to take hold in the market.
According to analysis from CoinDesk, bitcoin could be set to return to $18,000 over the next few days, with optimism returning to the markets after a muted end to 2017.
Bitcoin prices in 2017 grew to all-time highs of near $20,000, up from just over $1,000 at the outset of the year.
However, with the launch of bitcoin futures on American exchanges for the first time in mid December, prices took a turn for the worse, losing much of the momentum in the inevitable consolidation.
Now, with the turn of the year, prices have recovered some ground. At the time of writing, bitcoin had risen to just under $15,000, up from lows of around $10,000 after the collapse in late December.
Significantly, the announcement that Peter Thiel’s investment vehicle Founders Fund was investing a significant proportion of their resources in bitcoin has helped shore up the price. Now, analysis shows bitcoin could be heading for $18,000, and back towards the heights of last month.
Seen as a sign of strengthening interest from institutional investors, the news has helped attract additional capital flows into the bitcoin markets in recent days.
Omkar Godbole, an analyst at CoinDesk, said the charts show bitcoin could be heading towards and beyond $18,000 before hitting the next level of resistance.
“The chart indicates that prices could revisit $18,000 in the short-run. However, the decline of the intraday high of $15,400 to $14,650 neutralizes the immediate outlook. A move above $15,400 in the next few hours would add credence to the bullish technical factors listed above and could yield a rally to $16,490 (Dec. 27 high). A violation there would expose resistance at $18,149.99 (Dec. 12 high).”
The projections will be welcomed by recent investors in bitcoin, and in particular those who bought bitcoin before the middle of December.
With the outlook somewhat more positive than in recent days, investors will be hoping the current bull run continues for the foreseeable future.