The bitcoin prices have finally broken through their all time highs and through the $5000 region. They have been threatening to break through for the past few days and we had mentioned in our forecasts over this period that it was going to be only a matter of time before the breakout happens. We had also said that it was only a question of when and not IF and we were proved right as the prices have shot through the $5000 region and continue higher as we write this.
What has made the move even more remarkable is the fact that the bitcoin market had only taken a huge hit just a couple of weeks back as China, one of the prime markets for bitcoin in terms of trading and mining as well, banned ICOs and also shut down all the bitcoin exchanges in their country as they viewed it as a means by which people were flouting the AML laws in the country. This was a huge setback to the industry which led to around 30% fall in the bitcoin prices in a matter of a few days.
But this was followed by a period of consolidation which took its while as the investors and traders observed the market to see if it would lead to a total crash or whether the market was mature enough to handle this. Once the fact that the correction could be handled by the buyers became clear, it has been one way traffic since then and the prices have been moving up and up and have finally broken through.
With the maturity and the longevity of the market now assured, we expect this uptrend to continue for the short term and this is likely to keep the speculators busy in the short term. We expect the prices to reach the first target of $5200 and then proceed towards the $5500 mark and then we can expect some consolidation as the market awaits the hard fork next month.
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This article was originally posted on FX Empire
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