Say whatever you want about bitcoin but the world’s favorite cryptocurrency seems to have shrugged off all of its recent woes to rocket past the $5,000 mark, with no sign of stopping. $5800 to be precise…
As the daily chart shows, this rise encounters no resistance or any counter signals. The price is well above the 21-day EMA and even further above the 50-day SMA. These indicators act as a strong support in a downturn and equally strong resistance in an upturn.
On the chart, you can notice the distance between these markers and the price. This shows the price acceleration. The midsection of the chart backs this up with a strong 14-day ADX indicator and the long positive pulse indication lines – which indicates the strength of the movement upwards.
Lastly, there is confirmation, in the lower section of the chart, by virtue of the climb since the divergence indicator became positive, confirming the uptrend on 3rd October, the day Bitcoin prices started the climb.
Even Beijing’s ban on local trading seems to have had a little impact. China has long been assumed to be the epicenter of cryptocurrency trading with 17 bitcoin exchanges in Shanghai alone.
The focus of cryptocurrencies trading brought in plenty of investors looking to crowdfund through ICOs (initial coin offerings).
That all changed with Beijing getting heavy and clamping down on the transactions, which evaporated and sent prices tumbling. Since then investors have realized that bitcoin is, along with all other cryptocurrencies, both fluid and international. The exchanges can be set up anywhere and although China has around 70% of the world’s bitcoin mining power, this can always be transferred elsewhere, assuming that the server farms are willing to pay a little more for their electricity.
In the same way that traditional mining expands, and is able to spend more on its infrastructure when the price is high, cryptocurrency start-ups are realizing that while the profit remains as high as it does at the moment, there is a cushion which provides them with the flexibility to move their operations and remain profitable.
Globally, there are plenty of countries which would be more than happy to take even a small portion of the 70% that China seems determined to lose.
Of course, you can’t please all people all the time. Several weeks ago JP Morgan’s, Jamie Dimon, began a major onslaught against bitcoin and all that it stands for. Dimon told CNBC, on 12th October, that he would stop discussing bitcoin as it was “irrelevant.”
However, the following day, on 13th October, at the Institute of International Finance conference, in Washington DC, he said: “if investors are stupid enough to buy it, you’ll pay the price one day.” He went on to say “the only value of bitcoin is what the other guy will pay for it.”
Dimon seems quite peeved at the remarkable success of bitcoin. The reasons for his ire are not really known, given that bitcoin has a market capitalization of less than $100 billion, whereas J.P.Morgan, alone, moves around $6 trillion around the world each day.
Regardless of Dimon’s opinion, the public set its opinion in Bitcoin’s recent exponential surge. Bitcoin continues to trade with a bullish sentiment and you can guess that the new headlines will be about Bitcoin’s breaks the $6000 level.
Noble Gold specializes in IRAs and 401(k) rollovers through precious metals and cryptocurrencies investments.
This article was originally posted on FX Empire