As suggested in the recently published Bitcoin technical analysis on the 6th and the 13th after some fantastic gains Bitcoin broke the $8000 psychological barrier and moved towards $8355.
Looking at the daily chart of BTCUSD we can see that in the past 4 trading sessions Bitcoin has been stuck in a range between $7750 and $8355.
But, in my opinion, not for much longer ….
The past daily sessions show that after Bitcoin broke that magic $8000 barrier, investors are not sure how to continue. The price action is building a coil that is ready to spring.
The only question is, will the price spring north or south? We’ll know more once the current range is broken and confirmed.
Bitcoin is getting a lot of good exposure recently. Established financial firms are opening up Bitcoin futures which will see more investors’ money being poured into the currency.
Although the SEC recently rejected a Bitcoin ETF which was proposed by Tyler and Cameron Winklevoss (the originators of Facebook and the co-creators of the Gemini exchange), with all the new developments of Bitcoin futures by recognized financial firms, it is now speculated that the SEC might warm up to the idea of a Bitcoin ETF.
As most analysts predict, an introduction of Bitcoin ETF would see the price of Bitcoin rise to new heights.
So if nothing controversial happens, such as a major hack into the Bitfinex exchange, for example, one should expect the price of Bitcoin to go up to $8500 in the next bullish run.
However, if the bears get a hold of Bitcoin and force the price down, the $5617 level will be exposed. If even bigger correction will take place, than we could see Bitcoin fall below the $5000 level.