Bitcoin Targets $3,900 as Momentum Builds
Bitcoin’s price pushed higher on Saturday, as the bulls eyed a re-test of an important near-term resistance. The upswing in BTC was accompanied by solid gains across the market, as altcoins and tokens demonstrated renewed strength following a week of mostly lateral moves.
Bitcoin Grinds Higher
The bitcoin price swung back into positive territory at the start of the weekend, reaching a high of $3,932.71, according to CCN’s price tracker. Aggregate data courtesy of CoinMarketCap show an average price of $3,878.72 at the time of writing, a gain of 2% on the day.
Trade volumes have picked up sharply in the last 24 hours, rising from $3.8 billion to $5.2 billion. This suggests further upside is possible heading into next week.
In terms of technical levels, bitcoin faces strong resistance in the mid-$3,900 range. A breakout north would likely lead to a re-test of the $4,200-$4,300 range, which represents the high from Christmas Eve.
Bitcoin’s underlying volatility has declined gradually over the past three weeks after it peaked at nine-month highs Dec. 18. The 30-day bitcoin volatility index, courtesy of bitvol.info, has fallen to 4.52% as of Friday. The indicator conveys the amount of uncertainty about the magnitude of changes in bitcoin’s spot price.
Read about the latest trends in bitcoin in our Weekly Recap: Crypto New Year Begins Quietly as Apple Roils Traditional Markets.
Overstock to Pay Taxes in Bitcoin
Retail giant Overstock.com has announced it will pay some of its 2019 taxes in bitcoin, a move that CEO Patrick Byrne says could streamline mainstream adoption and government acceptance of digital currencies. The decision has already been blessed by the Ohio state government.
In a statement that appeared on Overstock’s investor relations portal, Byrne said his company is “proud to partner with forward-thinking governments and officials like Ohio.”
Ohio Treasurer Josh Mandel says he applauds Overstock for “becoming the first national brand in America to register to pay taxes via cryptocurrency.”
Byrne hasn’t let the year-long bear market affect his judgment on blockchain technology or cryptocurrency. Back in November, Byrne announced he will sell the retail arm of Overstock to focus exclusively on blockchain technology. The company behind tZero has also invested $175 million in a unit called Medici Ventures Inc., which will house several blockchain startups.
While efforts to streamline bitcoin adoption have not gone unnoticed, they’ve had virtually no impact on how the digital currency is priced in recent months. The decoupling of bitcoin’s price from the news wire likely won’t last much longer given the myriad of developments underway. This includes the forthcoming launch of new futures markets devoted to bitcoin as well as a decision by U.S. regulators to approve or deny a hotly debated bitcoin exchange-traded fund.
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.
Featured image courtesy of Shutterstock.