- Bitcoin (BTCUSD on xStation5) smashes $4,000 on growing exuberance about the spread of the digital currency
- Tensions between the US and North Korea propped up Bitcoin during the weekend
- Other cryptocurrencies tread water at the start of the new trading week
The Bitcoin’s price surged during the weekend and managed to smash a round $4,000 for the first time on growing optimism that faster transaction times would speed up the spread of the cryptocurrency. It’s worth recalling that the price of Bitcoin is up more than 40% in August, and more than 280% this year. Cutting to the chase, there was a plan to quicken trade execution by moving some data off the main network which was activated last week. The pace of Bitcoin’s rally is impressive. It first passed the $2,000 mark in May, and topped $3,000 for the first time in June.
Moreover, some people deem BTC (and remaining virtual currencies as well) a safe haven asset which tends to gain amid growing geopolitical tensions such as the JPY or CHF. Looking at the recent joint performance of Bitcoin and the USDJPY one could spot that there has been some correlation (the pair has gotten an inverted axis). When the Bitcoin’s price surges, the currency pair tends to go down meaning a pronounced demand for the Japanese currency.
The USDJPY (an inverted pivot) and Bitcoin have tended to correlate to each other lately. Source: xStation5
The last week was the same, a rally in Bitcoin was preceded by rising fractions between the US and North Korea. What’s more, Japanese traders were predominantly in charge of a soaring demand for Bitcoin as they accounted for about 46% of Sunday’s global Bitcoin trade volume, according to Cryptocompare.com.
Even as Bitcoin experienced a hefty increase of a demand, it was not seen in case of Ethereum (ETHUSD) which, as other digital currencies as well, remained little changed. Technically, the Ethereum’s price has tried to break out $310 several times but it’s failed to do so thus far.
Ethereum (ETHUSD) has failed to break $310 several times so far, hence a downward move could be in the offing. Source: xStation5
Meantime, the Bitcoin’s price has completely gone nuts recently which might be seen in an almost vertical increase. Two outstanding bullish gaps suggest there is no a reprieve for traders and just exceptionally shallow corrections could be seen as a buying opportunity.
Bitcoin’s buyers have gone crazy lately as the price has knocked down $4,000. A move towards $4,400 – where a 161.8% retracement is placed – might be another objective for them. Source: xStation5