Bitcoin Price Stabilizes Above $6,600; Bullish Bias Still Intact
Bitcoin held within a narrow range on Sunday, as markets eyed a bigger recovery following last week’s bullish crossover. The largest digital currency by market capitalization is once again showing signs of stability, which is a positive sign for long-term holders.
Bitcoin’s price reached a high of $6,662.80 on Bitfinex Sunday, as calm returned to the market following a sharp rally attempt on Friday. At press time, BTC was trading hands at $6,633. Hourly momentum indicators suggest further gains are possible in the short-term, though Friday’s high of $6,826.40 is likely to offer strong resistance.
BTC trade volumes have fallen back to around $3.9 billion, according to CoinMarketCap Total market turnover reached $5 billion on Friday.
At current values, bitcoin has a total market capitalization of $114.5 billion. Its share of the overall cryptocurrency market has fallen to 50.1%, the lowest since mid-August. The combined value of all crypto assets currently sits at $225 billion.
As Hacked reported on Friday, bitcoin’s price is on the cusp of a major breakout after a key momentum indicator crossed the Relative Strength Index (RSI) for the fourth time this year. This analysis, which is based on RIG trend lines, contends that each of the last three crossovers sparked a sharp rebound in prices. The last crossover occurred in mid-August and was followed by a 21% surge in value.
In addition to a favorable technical outlook, bitcoin’s strong price floor suggests the market has a vested interest in keeping values from falling any further. As Fundstrat’s Tom Lee recently reminded, $6,000 BTC is the break-even rate for miners – i.e., the cluster of firms and individuals who utilize vast computing power to maintain the Bitcoin network.
In Lee’s estimation, bitcoin will likely finish the year on a strong note as two underlying catalysts work in its favor. They include fear of missing out (FOMC) among institutional investors and a more stable exchange market for digital currencies. He also touted the launch of Bakkt as a game changer for investment banks and institutional traders looking to enter crypto for the first time.
Set to launch in November, Bakkt will be one of the first regulated cryptocurrency exchanges to hit the market. The platform is being developed by Intercontinental Exchange (ICE), the world’s largest stock exchange operator, in collaboration with Microsoft, Starbucks and others. In addition to facilitating regulated cryptocurrency trades, the platform will build connected infrastructure for institutional and consumer applications.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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