In just a few short hours, Bitcoin came back from a serious dip by surging to values in excess of 10% higher than where prices had previously been. Earlier in the day, Bitcoin had plummeted to lows not seen within the last seven months and a steady bear run seemed imminent. However, in a surprising turn of events, very likely accredited to seller fatigue, a quick rebound by Bitcoin turned things around for the popular virtual coin.
Bitcoin prices were registered under the $6,500 mark by midday and a mere 12 hours later, coins were selling for more that $7,400. Since late October, there hasn’t been a single day showing growth as high as what we just witnessed, and it could be a sign of positive things to come.
One positive outlook is that a rebound as large as this can mean sellers have grown tired and are taking a break. The comeback was significant enough to cancel out value loss from the entire week before and did wonders to point the situation back toward bullish territory.
In fact, the steady decline of Bitcoin value over the past week made a long-term bear run almost definite as such a large increase in value was not expected or predicted. However, now that the rebound by Bitcoin has occurred, the bear case is anything but a sure thing.
Of course, the comeback spells good news for Bitcoin, but the coin still isn’t quite out of the woods yet. At the time of writing, Bitcoin is trading at $7,145 and a climb to beat previous highs would be necessary to confirm a bull run for Bitcoin. The current value to beat is just over $7,850. Registered at the end of November, that ceiling has been out of reach for Bitcoin for nearly a month now.
Further gains in excess of $700 seem quite possible at the moment, thanks to indicators on the 14-day RSI that make a case for the bulls. The 14-day charts show that lows are closing higher which means an upward trend is likely. If the trend continues over the next day, and if we see valuation exceeding $300, the bull case would almost certainly be a strong one.
The fact that there are two strong indicators pointing to an increase in Bitcoin price is quite exciting. Especially seeing as how the most evident indicator has to do with seller motivation. As prices continue to climb, and as sellers hold on to more of their Bitcoins, a scene is set for continued growth for the cryptocurrency.
Despite the good news, it is always important to remember that Bitcoin is quite volatile. Should things turn south for the coin over the next days and weeks, the value to confirm a further bear run is currently set at just under $6,500.