Bitcoin soared above $14 000 and is due for a possible correction

bitcoin
Investments |6 days ago

The price of Bitcoin soared to above $14 000, driving the growth of the world’s favourite cryptocurrency to more than 40% this month. Investors smile all the way to the bank with the latest rally but should be prepared for a correction. Currently trading at about $14 981 for one BTC, it almost seems as if there is no end to the rally but technical analysists expect a pullback to 38%, or even 50% Fibonacci levels before the price is expected to continue on its way up.

Bitcoin cap nearing $400 Billion

Data from the CoinDesk Bitcoin Price Index (BPI) shows the price of bitcoin was just under $12,000 at 1:00 UTC on Wednesday, before climbing to $14,000 today.

Their data also reveal that the total value of all cryptocurrencies is now nearing $400 billion, up from just under $10 billion at the start of 2017.

Cboe Global Markets has said it will start trading bitcoin futures on December 10, while CME Group’s contracts are set to debut on December 18, as the FT reports. Nasdaq is also planning to offer futures by next year.

According to crypto hedge fund manager Alex Sunnarborg, of Tetras Capital, one of the driving factors behind the latest buying frenzy, is fear-of-missing-out. He is of the opinion that both new investors and long-term market observers are preparing for the debut of Bitcoin futures next week.

“People who had bitcoin and went into alts are going back into bitcoin,” Sunnarborg said to Coindesk.

A pullback is bound to happen

Any experienced trader knows all too well that what goes up too fast, certainly comes back down with a bang. In fact, Swissquote’s analyst Arnaud Masset warned a few weeks back that BTC was bound to face a bumpy road in the future. Indeed, the Bitcoin is due for a strong correction after a price increase of nearly $5000 in just more than 2 weeks. Such a pullback can provide a valuable buying opportunity for late-comers.

The RSI on the BTC daily chart is also making its way out of the overbought zone to signal that a correction is underway. However, SMA lines suggest that Bitcoin can skip a pullback, for now, reacting on the introductions of futures products, and continue to soar to breathtaking heights.

Similar News

Become a member

Join our Community and stay updated to the latest financial news, discussions and insights.

Become a member to start your Gooruf experience.