Skip to main content
Bitcoin Prices Surge To Five-Week Record Before Fall

Bitcoin Prices Surge To Five-Week Record Before Fall

in Bitcoin & Cryptocurrency published on 16, October 2017

Bitcoin prices surged to a five-week high in the past week, following strong trading volumes.

Prices climbed to $4,875 on October 10, within touching distance of the landmark $5,000 mark, after strong demand from investors. However, the price swell was cut short at the five-week peak, falling back slightly since.

At the time of writing, bitcoin had recovered ground to reach $4,803, which still represents a substantial rise in price from previous days. On the month, the price remains over 12% higher than the previous month.

The trading performance will be seen as good news for bitcoin investors, especially with more adverse news about regulation coming from Russia. When China announced a ban on ICOs, or initial coin offerings, prices dropped sharply to $2,980, and there were fears that similar sentiments coming from Russia could lead to further instability.

However, despite the news, bitcoin is currently trading at just a few percentage points below the all-time high of $5,000, which was hit for the first time earlier in the month. Analysts are now expecting bitcoin to continue to rise towards the all-time high.

Much of the recovery in bitcoin’s price has been attributed to activities in Asia, where investors across South Korea, Japan and Hong Kong are set to be upping their investment activity following the localised bans in China.

There is also some speculation that the increasing moves to clamp down on ICOs could be leading to a capital rotation, with investors switching their money from ether (intrinsically linked to ICOs) to bitcoin as a more stable alternative.

While there is some analysis suggesting prices could fluctuate in the short term, technical analysis over the coming days suggests bitcoin will continue to increase in price towards, and potentially beyond, its previous all-time highs.

This would support the wider trend in bitcoin prices, which have grown steadily, in spite of various downward flashes, over a number of consecutive years.

Analysis suggests that an end of day close below $4,400 would be the only factor that looks likely to prevent bitcoin from surging to new all-time highs.

While there is much talk of a further pullback, and thus traders are being urged to proceed with caution, the general consensus is that the market will see further strong price rises as the month progresses, mimicking the trading patterns seen back in July.

 

Like this article? Place your comments below