$---.--
$---.--
$---.--

Another Bitcoin Price Surge

At the end of August 2019, market watchers were talking about key indicators showing that the price of Bitcoin was getting ready to surge. Some analysts are calling bull and some are calling bear. Finance writer for Cointelegraph, Horus Hughes, said some traders were concerned about Bitcoin’s struggle to stay above $10,000 through August.

Bitcoin price chart since inception
Historic chart courtesy BitcoinWiki.org

However, the beginning of September was looking very bullish as prices surged to highs of $10,915. After a little wobbling down to $10,450, the market came back and was steadily hanging on in the $10,600+ range, teasing the next milestone of $10,700. This week saw an initial drop and quick jump up. News BTC reports that “Alex Krüger, a popular crypto analyst on Twitter, spoke about this trading range in a recent tweet, explaining that although BTC is more bullish now than it has been in recent times, its bullishness is still tempered unless it can break above $10,800.”

The Bakkt Effect and Lower Volatility

Digital Content Manager for CoinSwitch, Anisa Batabyal, says the latest data indicates that October might turn out to be the most favorable month for Bitcoin. She cites the announcement of the launch date for Bakkt later this month as a trigger for Bitcoin’s surge, and further reports that “market enthusiasts are pretty sure that BTC is going to go bullish after its launch.” Bakkt is an open platform for cryptocurrency services, including trading and warehousing that is founded by the same company that spawned the New York Stock Exchange.

CoinTelegraph reports that institutional investors will trade actual Bitcoin on Bakkt. Clients who trade in Bitcoin will receive Bitcoin in their accounts instead of dollars. In addition, they report that the Bitcoin market has been dropping in volatility for the past month and that “typically, when volatility drops off to this degree, it is an indicator that the next move will be a large and explosive one.”

Hash Rate Reaches All-Time High of 84 Quintillion Per Second

We discuss the reported increasing hash rate for Bitcoin (the amount of computing power used to validate Bitcoin transactions) in another post, and this steadily rising hash rate is another indicator of an upward trend in Bitcoin price.

Bitcoin Dominance

Bitcoin hit a two-year high last week, rising to 70.5%, the highest it has been since March 2017. This could be partially due to the poor performance of the major altcoins, which have trended downwards until now. Whether market dominance is an indicator of a Bitcoin price rise isn’t a sure thing, but it contributes to the overall bullish atmosphere. As altcoins surge, it’s expected that Bitcoin dominance will drop, but that doesn’t necessarily equate to price. David Canellis at The Next Web says “there’s no harm in using Bitcoin dominance as a rough guide for market sentiment.”

The First Bitcoin ETF

Another factor pushing up the price of Bitcoin is the launch of the first two Exchange Traded Funds (ETFs). An ETF is an investment vehicle that allows investors to diversify without actually owning the assets tracked by an ETF. So investors can buy into the ETF and not have to go through the process of the purchasing, storing, and security procedures required when buying Bitcoin itself. This news means that people who otherwise might not be willing to buy Bitcoin can enter the crypto investor universe through a regulated ETF.

Share this post: