Bitcoin had a disastrous end to last week, slumping down to around $11 000 and down to the R130 000 region on Luno.
From people taking out their money for a present or two during the Christmas period, to the various announcements causing a bit of controversy surrounding Litecoin, Bitcoin Cash and even Bitcoin itself having its own struggles with its own capacity to establish itself as a transaction value, there is no certainty as to what actually caused the shift in bullish momentum. Many people are struggling to work out if it is going to dive further or start another large bullish trend.
After a positive weekend and Christmas period, Bitcoin came back with vengeance, reclaiming $4000 of the $9000 fall, reaching the heights of $15 000 midway through the week, seeing resistance levels fall, one by one. Today however, this lacklustre revival has been short lived and the price has dropped back to the $13 500 – $14 000 range, with momentum shifting to the bearish foot once again.
Today will play a vital part in in the short term outlook of Bitcoin’s price, so be patient and get ready for those heart palpitations once more.
One thing that has been extremely noticeable about the current Bitcoin price variations between Luno and the USD market price is that they barely correlate anymore.
The South African market has seen a huge spike in the volume of traders recently, with Luno coming close to R1 Billion in daily trading volumes at one point and has started to develop its own price points for Bitcoin, which currently sits between 17% and 24% above USD market price… [insert arbitrage here]
Not all is lost however, over the recent years, Bitcoin has seen many falls and has always recovered to heights never seen previously, so is it just a matter of time before we see the ALL TIME HIGH become just another statistic along the way to greater success.
Or will we see the price head downwards towards the last real support level of $8000? There is a lot of money to be made with careful planning between support and resistance level price jumps, however I do not advise playing this risky game unless you have the patience of a saint and are willing to get burnt a little along the way.