[2017-10-12] Bitcoin Price Hits $5,220, Astronomical Short-Term Rise

[FollowSynergy]

Earlier today, on October 12, the Bitcoin price experienced a sudden surge in price, demonstrating an overnight increase in value of 8 percent, from $4,780 to $5,220.



On October 11, Cryptocoinsnews reported that the Bitcoin price had recorded a slight correction from $4,900 to $4,780, after increasing by over $530 in a span of three days. But, the report also noted that the minor correction had placed Bitcoin at a better position to gain momentum and establish new highs in the short-term.

“Normally, when the price of Bitcoin increases by over 10 percent, it tends to correct its short-term surge, providing a more stable platform to build momentum and achieve new highs,” the report read.

In the past 10 hours, the Bitcoin price has done exactly that. It has picked up strong momentum, increasing from $4,780 to $4,950, and then rising by over 8 percent in a three-hour span.

Major Factors Behind the Increase in the Bitcoin Price

It is difficult to pinpoint one single driving factor behind the Bitcoin Price surge because through the exit of the Chinese market, the global Bitcoin exchange market has restructured and the Japanese market has evolved into the largest Bitcoin market overtaking the US.

Three major factors that have contributed to the recent price surge of Bitcoin most likely are the SegWit2x hard fork in November, introduction of national licensing program for cryptocurrency exchanges in Japan, and the rise in demand for Bitcoin in the US market by institutional investors.

As Cryptocoinsnews previously reported, the SegWit2x hard fork in November is beneficial for the short-term price trend of Bitcoin because investors that do not believe SegWit2x will become the majority chain would in invest in Bitcoin and investors that do believe SegWit2x will become the majority chain would also invest in Bitcoin, as it is the only way to obtain SegWit2x coins upon its launch.

With major Chinese mining pools such as ViaBTC clarifying that they will allocate all of their hashrate to mining SegWit2x coin or B2X, it is likely that the Bitcoin community has gained confidence over the original Bitcoin blockchain.

More importantly, as prominent Bitcoin investor and Atlanta Digital Currency Fund partner Alistair Milne mentioned, miners tend to follow more profitable Bitcoin blockchains and ViaBTC’s statement has demonstrated such tendency.

“Miners follow the money, they do not lead the money. This has never been illustrated more clearly than by Bcash and the joke that is their difficulty adjustment algorithm. A rational miner fears the market negatively valuing the tokens they are trying to mine. They are extremely sensitive to profit & loss (no matter how rich they pretend to be),” wrote Milne in an analytical blog post.

Institutional Investors Preparing to Invest in Bitcoin

Furthermore, Billionaire hedge fund legend Mike Novogratz have stated in an interview with CNBC that institutional investors and key figures in the US finance industry are preparing to engage in the cryptocurrency and Bitcoin markets.

At the moment, a variety of positive developments in the Bitcoin industry such as trading volumes from China flowing into a more mature and efficient market in Japan, the Russian government’s intent to regulate and legalize cryptocurrency usage, and increase in demand for Bitcoin from institutional investors are contributing to the momentum of the Bitcoin price.

https://www.cryptocoinsnews.com/bitcoin-price-hits-new-all-time-high-at-5220-astronomical-short-term-rise/

[Real_Person]

A strong push through the all time high (after a quiet period) should be a good signal, but the "Astronomical Short-Term Rise" is not sustainable. I predict a "high level of excitement" in both directions, followed by more examples of Greed and Fear.

[Enzo 666]

High price for bitcoin from start Hope price down soon 

Stop up

[Kemarit]

A strong push through the all time high (after a quiet period) should be a good signal, but the "Astronomical Short-Term Rise" is not sustainable. I predict a "high level of excitement" in both directions, followed by more examples of Greed and Fear.

This astronomical rise of bitcoin today is due to the fact that we are getting closer to the Oct. 25 date. A lot has been expecting that they will get free coins from Bitcoin Gold. But let see how it goes, $5000 tends to be a psychological barrier for a trader, is he willing to sell off today because of the current price? or continue to hold?

Definitely, any short price rise is not sustainable long term. A price correction will soon happened. But this bullish market will remain steadfast and will try how far this bull run will last. If it continues to go beyond $5000 remains to be seen. It will be critical after the Oct 25 it the market can sustain this astronomical rise or not.

[Slow death]

I believe that this increase has to do with this news:

 " Beware of Bitcoin's possible incompatibility with some major services
11 October 2017

Summary

A subsection of the Bitcoin economy including prominent businesses such as Coinbase, Xapo, and BitPay have signed an agreement to adopt and implement a contentious hard fork of Bitcoin sometime in November. A hard fork is a backwards incompatible change to the Bitcoin network. This hard fork is not supported by the majority of the Bitcoin users and developers and is therefore a contentious hard fork. By adopting this hard fork, we believe the supporters of this agreement are shifting their users to an alternative currency (an altcoin) which is incompatible with Bitcoin.

The signatories of this agreement wrongly believe that the currency created by adopting this contentious hard fork will eventually become Bitcoin. Therefore storing any BTC on services such as Coinbase, Bitpay and Xapo is strongly not recommended. By storing BTC on these services, you could find that after the hard fork, your BTC has been renamed to something else or replaced entirely with the new altcoin. The best way to ensure that your BTC is protected is to download the latest version of Bitcoin Core and transfer out any BTC stored on services that are a signatory to this agreement. We have listed the businesses supporting this contentious hard fork at the bottom of this document.

For users who aren’t prepared to install Bitcoin Core and go through the lengthy set up process, we recommend a wallet such as GreenAddress or Electrum. Avoid using web wallets like blockchain.info. However users should only use these wallets to store their coins and never perform transactions until well after the hard fork. Any transactions you make on the Bitcoin blockchain can also be replicated and “replayed” on the altcoin chain. If the coins on the contentious hard fork have any value, there will be methods you can use to “split” your coins and have access to them. Pay extra attention to major Bitcoin communication channels and media shortly after the fork so you stay informed.

Mobile wallets

Miners in Bitcoin are responsible for transaction ordering through putting transactions into blocks, and collectively creating a chain of these blocks. Most mobile wallets depend on blindly trusting the longest chain produced by the miners in order to safely send and receive transactions. There is considerable mining power supporting the contentious hard fork. A majority of miners have pledged to support the contentious hard fork, therefore the longest chain as seen by most mobile wallets may not be the true block chain. As a result of this, spending money from a mobile wallet during a hard fork is dangerous. You will be vulnerable to many attacks as your wallet is not aware that the miners are breaking the consensus rules on the longest chain.

If the contentious hard fork has failed and the majority of miners have broken their pledge to support the hard fork, it is safe to continue using mobile wallets, however you should check multiple sources of Bitcoin news such as this website, /r/bitcoin, and the Bitcoin Forum to make sure that it’s safe to continue using your particular wallet. As a general rule, you should not perform any transactions during and shortly after the hard fork.

After the fork

Blocks may be slower shortly after the hard fork and your transactions will take longer to confirm. You will have to pay a higher transaction fee if your transaction is high priority and you want it confirmed in the next block. You should try to get any important transactions done a few days before the hard fork date. A lot of websites and programs will likely pop up around the time of the hard fork offering to split your Bitcoin so you can have access to both your BTC and to the new altcoin created by this contentious hard fork, you should exercise caution as many of these services are likely to be scams trying to steal your bitcoin. As the hard fork has very little replay protection, most transactions you perform on the Bitcoin network will also be valid on the hard fork network. You should keep this in mind when transacting.

Some services may continue to present and name the altcoin created by this contentious hard fork as Bitcoin. Users should be aware that this new currency is not Bitcoin. Bitcoin can only be changed with the overwhelming consensus of the entire Bitcoin community of individuals, miners, developers and economy. Even when there is overwhelming consensus, unless in an emergency, a hard fork should have at least a year notice period to give enough time for users to upgrade. This hard fork being adopted by the signatories of this agreement achieves none of these things. It is a rushed and hasty upgrade which only has minority community support and has been thoroughly rejected by users and the technical community. As this new altcoin is not Bitcoin, Bitcoin.org will not list wallets and services that present this altcoin as “Bitcoin” or “BTC” to their users after the hard fork. These services have exited the Bitcoin system in a contentious manner and therefore are no longer useful to our visitors.

The following companies and services have pledged to adopt the contentious hard fork:

Wallets

Abra (United States)
Bitcoin.com (St. Kitts & Nevis)
BitPay (United States)
BitPesa (Kenya)
Blockchain.info (UK)
BTC.com (China)
Circle (United States)
Coinbase (United States)
Coins.ph (Phillipines)
GoCoin (Isle of Man)
Jaxx (Canada)
Luno (Singapore)
Ripio (Argentina)
Unocoin (India)
Xapo (United States)
Exchanges

ANX (Hong Kong)
Bitex (Argentina)
bitFlyer (Japan)
Bitso (Mexico)
BTCC (China)
BTER.com (China)
Coinbase (United States)
Coins.ph (Phillipines)
CryptoFacilities (UK)
Korbit (South Korea)
Safello (Sweden)
SFOX (United States)
ShapeShift (Switzerland)
Miners

1Hash (China)
Bitcoin.com (St. Kitts & Nevis)
Bitfury (United States)
Bitmain (China)
Bixin.com (China)
Genesis Mining (Hong Kong)
ViaBTC (China)
Other

Bitangel.com /Chandler Guo (China)
BitClub Network (Hong Kong)
Bloq (United States)
Civic (United States)
Decentral (Canada)
Digital Currency Group (United States)
Filament (United States)
Genesis Global Trading (United States)
Grayscale Investments (United States)
MONI (Finland)
OB1 (United States)
Netki (United States)
Purse (United States)
Veem (United States) "

People will be aware of the danger that segwit2x represents and will not use the services that support segwit2x and with that they will lose their fear of segwit2x, and also see that f2pool has stopped signaling its support for segwit2x

Block 489492: F2Pool does not signal NYA anymore! Finally! Good bye Segwit2x!

[2double0]

The price tends to be moving up just because we are in for some "forkful" festive season. I don't see this as a short-term rise but this might not end up before 7500 and we may see the correction between 5k-6k which doesn't seem a big loss in the price but something reasonable. We must hodl and see what will happen this month's end because price won't stop here after breaking those sensitive levels of 4k and 4500. All set for a rally, just sit tight and see to the reactions of market.

[SvenBomvolen]

We all know that China banned ICO and cryptocurrency exchanges ,but the market quickly digested this bad news. Even if barriers are introduced in a particular country, capital quickly flows from there to other markets.
Traders from China, where the main focus of mining power, relocated to neighboring regions - Hong Kong and Japan. Bitcoin will fly to the moon and sad news from Russia will not stop it!