After a week of being in the doghouse, Bitcoin has finally broken through the $10,000 level and is back above it once again. BTC made a big move today right after Labor Day ended, jumping by almost $1000 in mere hours. Bitcoin is currently trading at $10,411 on Bitfinex, attempting once again to hold the new support level. Let’s go over some current events that might be affecting the market, and take a look at the charts to see what hints they may give as to what lies ahead.
Bitcoin News
In our last Bitcoin price analysis, we mentioned the new developments in the Wright vs Kleiman case. Last week, the judge has ordered Wright to hand over 500,000 BTC to Kleiman. The decision was a savage move by the judge after he accused Wright of presenting false documents to the court and acting in bad faith.
Looking at the court documents, Wright filed a motion to grant him more time to challenge the judge’s order. The motion is titled: “Dr. Craig Wright’s motion for enlargement of time to challenge Magistrate Reinhart’s order deeming certain facts as established and striking certain affirmative defenses.” In the motion, Wright blamed Florda’s hurricanes for not giving his lawyers an opportunity to put in the time required to present a fair defense.
Magistrate Reinhart has yet to respond to the motion. In my opinion, the judge will grant the motion as Wright has a right (no pun intended) to challenge the judge’s decision. If you want to learn more about the whole Kleiman vs Wright saga, read through the court documents linked above, you will get a clear picture of what the case was all about and how the judge reached his decision.
BTC Dominance Over 70%
While Bitcoin’s price of $10,400 might not be a big accomplishment, BTC did hit a huge milestone today. Bitcoin has finally reached over 70% global market cap dominance.
Looking at the above bitcoin dominance chart from coinmarketcap, we can see Bitcoin’s dominance has been climbing steadily in 2019. Today the dominance percentage hit over 70%, which hasn’t happened since march of 2017. This spells good news for Bitcoin and bad news for altcoins, which are still trying to recover from last year’s crypto winter.
Bitcoin Price Analysis
Relative Strength Index: The RSI at the time of writing is at 63 points. This means the market does have some power but is not quite overbought. We can see the RSI toppled over 70 points earlier, which is where Bitcoin made its crazy gains. If the RSI can stay high, Bitcoin just may make another move upwards.
Bollinger Bands: The current price is touching the top band. This means that we will either see a breakout in the next few hours, or the price will consolidate by a few percent and test support. Most likely, we are going to see a small retracement back (1-2%) followed by either sideways trading or another move up. A significant move down in the next few hours wouldn’t make any sense.
Volume: We saw some great volume earlier today during the bull run. Right now the waters are calm and volume is relatively low. If we don’t see any big orders the next couple hours, the chance for another breakout in the near future will decrease significantly.
Bitcoin Price Prediction
The RSI is pointing to a strong market, Bollinger Bands are signalling a retracement, and Volume tells us a sideways market is ahead. Each indicator is telling us something completely different, what do we do with that? When the indicators make no sense, the market usually doesn’t either. That means that we should expect further volatility in the next day or two. Hopefully the volatility comes in the form of another bull run, as dropping down below the $10,000 level again is going to be very anticlimatic.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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