After August 1, the success of bitcoin hard fork gave confidence to the market hoisting bitcoin price up to its all-time high $3490. This mark was seen by many short term traders as a profit point so now bitcoin is floating with its strong support held around $3300. Will this price hype keep strong even the next days and near future that is ahead of us.
For the moment even technical factors that we could use to support our analysis are very uncertain and doubting because of bitcoin price being in an “unknown territory”.
Taking a look at MutexLock‘s chart on Tradingview we can see one interesting indicator to notice is the formation of a nasty head and shoulders pattern. Here you can see it highlighted:
Two indicators that are very worth mentioning is the surge of volume which would hoist up the BTC price over the supporting mark and on the other side RSI is floating beneath 30% which tells us the Bitcoin has more value than what we think and got its potential for price increase against the dollar.
BTC-E’s recent report about the position of its users fund may have made a downward pressure on the market. Even with the completion of the exchange, BTC-E will have control of around 55% of their user’s funds.
As mentioned above the selling force that made bitcoin price to fluctuate around its support right now happened because of this reason. Traders understood that they could make profit right now and that their bitcoins will be in the market so they could be back at around end of September.
Just to help keep the hopes up on the domination coin of the top-ten cryptocurrencies Bitcoin you can see the Google Trends by yourself which is quite a clear indicator that BTC will be hitting another all time high.