There are a lot of eyeballs on the Bitcoin price right now, as the value continues to climb up on a daily basis. However, a lot of people are well aware this trend is not likely to continue forever, and there are some signs of resistance along the way. Moreover, no one is certain where this sudden demand is coming from, albeit there are plenty of reasons as to why this could be the case.
A Bitcoin price increase is always a joyous occasion for cryptocurrency enthusiasts. Many people have bought or earned their Bitcoin at a lower price point, and every price increase goes to show they were right in believing in Bitcoin. Contrary to what most people may believe, Bitcoin is here to stay, and it will survive all of the hardship it is enduring.
Up, Down, or Sideways?
Looking over the Bitcoin trading data – provided by Bitcoinity – there is a strong trend for everyone to see. Trading volumes are way up there, with a peak on June 12th which saw 220,000 BTC in volume in the early hours. The majority of that volume originated from OKCoin, which is kind of interesting to note. Then again, OKCoin has been generating 57.88% of all Bitcoin trading volume over the past three days.
Major Western exchanges are well behind the curve as far as the trading volume is concerned. Bitfinex is the first one to appear on the charts, with just 184,000 BTC volume in three days. We all know China is driving the Bitcoin price at all times, although we usually depict the price in its USD value. ItBit has a legitimate chance to overtake both GDAX and LakeBTC in the coming days, though, as there is only 6.4k BTC volume separating these exchanges.
The big question becomes what will happen to the Bitcoin price moving forward. There are growing talks about how the upcoming Bitcoin halving is influencing the price before this historic milestone will take place. But at the same time, there is no clear indication the current Bitcoin price trend has anything to do with the halving. Sometimes, events like these are just coincidental.
What most people are concerned about is whether or not the Bitcoin price will hold, go up further, or face a retrace. Every time the price goes up by a significant margin in a short timespan, the retrace seems to be the most likely outcome. However, it is impossible to predict to which values the Bitcoin price will drop if this were to happen, as there are a lot of people looking to buy in right now.
It is equally possible the price trend will continue, and higher values are achieved. However, we are coming into a price range where the prospect of taking a profit and looking to buy back in cheaper can cloud people’s judgements. Regardless of the outcome, Bitcoin is still undervalued by quite a margin, but we should not run the marathon before we can take our first steps either.
Source: Bitcoinity
Header image courtesy of Shutterstock
