The last time we saw Bitcoin around these levels was exactly one year ago in November 2014. We were just coming down from a down trend correction that peaked at $667,530 on the 25th of May as people were desperately trying to get rid of their remaining coins and we had no idea where it would stop. Then, less than a month later we finally hit the bottom at $200 where the price remained solid for almost a year, continuously dancing between $260 and $198.
Strong news to back it up
The first thing that comes to mind when you look at such a chart is obviously that someone’s trying extra hard to manipulate the prices for their own evil profit. I thought so too until I read the following news:
The above article talks about how global banks are super hyped about the Blockchain technology that Bitcoin is running on and how they have already invested billions of dollars into it. They are finally taking this new technology seriously enough and who can really blame them? It’s a lot more secure and simply a better way to transfer funds than the traditional system we currently have. The article fails to show the relevance of Bitcoin in all this, because as you know, Blockchain is *not* Bitcoin, but there is more!
Since China is a global giant such news are definitely going to change a lot. The article talks about how China already devaluated their currency in order to help exporters and more devaluation is imminent. The current price rise of Bitcoin is almost entirely made up of money flowing into Bitcoin from China so people are already getting ready for a serious meltdown by the looks of it. This reminds me how Kim DotCom tweeted in August suggesting people to buy Bitcoins now and thank him later.
Gemini is the world’s first legal and regulated Bitcoin exchange with its headquarters located in New York, USA.
“Cameron and Tyler Winklevoss, famous for their legal spat with Facebook founder Mark Zuckerberg, launched bitcoin exchange Gemini on Thursday. While the currency has received criticism for its role in exchanges such as online black market Silk Road, the brothers contend they have established sufficient safeguards to unlock its potential. ”
“Bitcoin can now legally be treated the same way as real money after a court ruling on Thursday which stated that Bitcoin transactions are exempt from VAT (value-added tax). That alone is enough to raise the price of Bitcoin considerably for obvious reasons. Even the oldschool investors who didn’t care about Bitcoin before are now looking into this tax-free investment.”
Panic buyers fueling the price further
Given all the positive media fuss around Bitcoin lately and seeing the price skyrocketing in a matter of days has got a lot of people standing on their toes right now. The value of Bitcoin rose from $328 up to $420+ in a single day today as more buyers are jumping on the train, thus fueling the rally even further.
$500-$600 a very real possibility
In one of my previous posts I was quite skeptical about the price moving anywhere above the $450 area and even though I still believe we are going to see some resistance at the $454 area, it looks like Bitcoin is just getting started and we have only seen the tip of the iceberg right now. Basically any correction, especially the one that should happen around $454, will be a good entry point for a LONG position from now on.