After a two-week rise in Bitcoin’s price, the digital currency price is fast approaching the $10,000 mark once more. According to the charts, the price has been on the rise in the last 24 hours, and today it was trading at $9,961. This is the highest it has been since 1st February this year, rising by more than 60% above its 6th February low of $6,000. In the last 24 hours, the rise in the price has been almost 12%. February is indeed a good month for Bitcoin, and the price is not likely to drop during the Chinese holiday lull as speculated by some cryptocurrency analysts.
Other Cryptocurrency Prices on the Rise
The rise in Bitcoin has also pulled up the prices of other cryptocurrencies. The highest gainer is Litecoin, whose price has risen by 28% over the last 24 hours, posting a new all-time high of 0.025 in terms of market cap compared with Bitcoin. Ethereum’s Ether tokens Stellar, NEO and XRP have appreciated by 8% each.
Trend With Caution, Analysts Warn
Chart analysis shows the digital currency is over the resistance, and the 10-day and 5-day moving averages (MA) are in favor of the rise in the price. The relative strength index (RSI) has been on the rise, which shows the Bitcoin price is likely to continue surging. The price, according to the inverse head and shoulder breakout, may even rise above the $11,000 mark. However, this could be the end of the bull market. According to the weekly chart analysis, the continued rise of the price above $10,000 might not be sustainable. Anywhere above this mark should be regarded with caution. The Bitcoin weekly chart analysis shows the 10 and 5-week MA crossover indicating that the market is still bearish. The 5-week MA is also showing a downward trend, and the RSI is still lower than the resistance zone of between 53.00 and 55.00.
Some analysts were optimistic about the healthy pullback of Bitcoin, and most traders were ecstatic. However, others advised that traders in the Bitcoin market should not be greedy. Furthermore, the sudden price rise should be considered with caution, with Microsoft arguing that Bitcoin’s new appeal is not easy to define.
What This Means for Bitcoin as a Medium of Exchange
Bitcoin has also continued to rise against other international currencies such as the Yen and the Euro. Its value in yen is now higher than 1 million. Following the positive feedback from Bitcoin traders in exchanges after the rise in price, it seems most people are now buying cryptocurrencies not to use them but to hold them in an expectation that they will profit from the increase in their prices in the long run. However, when traders do this, the price is likely to continue rising, which makes cryptocurrencies less usable as a medium of exchange. To profit from the rise in Bitcoin price, one must first convert it to fiat currency, as the cryptocurrency rises in price against the U.S dollar and thus little or no profit is made if a trader chooses to exchange Bitcoin for other cryptocurrencies.
So what do you think about the sudden forward surge in Bitcoin price? Leave us your views in the comments section below.