[2017-10-02]Slow Ascent? Bitcoin Prices Climb Toward $4,500 on Weak Volumes

[cybersofts]

Having defended its 50-day moving average last week, the bitcoin-U.S. dollar (BTC/USD) exchange rate is looking up.

Now eying the next psychological resistance level at $4,500, BTC/USD remains well bid even despite the ripple effects of the recent regulatory news from China that caused the fall below $3,000.

At press time, it appears the country's bitcoin exchanges are following through with earlier promises to shut down domestic trading operations, though the lack of major price movement indicates the bearish news has now been priced in.

Prices remained on the front foot over the weekend, as investors shrugged off South Korea's decision to follow China in banning ICOs. Moreover, ether has regained poise, which has helped stabilize sentiment in the cryptocurrency space.

At press time, the BTC/USD pair is trading at $4,420 – up 2.8 percent on the day. The cryptocurrency is up 11.3 percent week-on-week, but still down 4.9 percent on a monthly basis.

The price action analysis suggests that the odds of the cryptocurrency revisiting record highs have improved following the bullish price action over the weekend.

However, patience will be tested as trend indicators signal a lack of vigor in the market. Another slight cause of concern is that volumes remain weak as well.
 

The rebound from the 100-day moving average followed by a convincing break above the 50-day moving average (as seen in July) coupled with a bullish relative strength index (RSI) and the directional movement index (DMI) indicate scope for a rally to $4,692 (September 6 high) and possibly $5,000 (record high).

DMI is used to confirm price action, and a bullish crossover occurs when the green line crosses up through the red line.

Only a convincing break below $4,180 (confluence of the 50-day moving average and the rising trend line) would abort short-term bullish bias on bitcoin.
 
Despite the bullish break above the 50-day moving average, volumes have remained low.

The average directional index (ADX) line is sloping downwards, suggesting the bullish move lacks strength.

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Although the medium-term outlook is constructive, a minor pullback to $4,200 cannot be ruled out, courtesy of weak volumes and lack of strength as indicated by the ADX line.


Source: https://www.coindesk.com/slow-ascent-bitcoin-prices-edge-higher-despite-weak-volumes/

[iamTom123]

The slow rise to gain back the territory it once had is the big testament on how resiliency has entered into Bitcoin. Had it been made up of bubbles, the market may not be able to recover after the deluge of bad news courtesy of China and the constant assault of many versions of FUD coming well-known and unknown personalities from many directions.

This affirms the fact that Bitcoin can be here to stay and though there would always be bumps and humps along the way, those challenges will in fact make the digital currency get stronger and more determined to continue its rule as the alternative currency for people who look for change and a better platform away from the prying control of the government (though of course regulations are already here but we have to also compromise).

[Argoo]

It seems that the market of crypto currency overcomes the state of instability, in which it was quite a long time after the prohibitions in China and finally decided to develop. A good impetus in this was the decision of Japan and the United States on the judicious regulation of the crypto currency in these countries, which will certainly lead to an ever-increasing demand for crypto currency and increase its rate. This is a very good trend, which everyone has been waiting for.