Will Bitcoin continue its hot streak in the year 2016?
If you’re one of those Forex trade investors who bought Bitcoin in its leading days when it was being traded at $1100 value, in early 2014, before it plummeted badly, you certainly must be happy to watch this cryptocurrency make a comeback.
Though it has not reached the value at which it was trading before, but what I can say, just by looking at Bitcoin’s ongoing trends is that the currency is on the road to recovery and in my opinion, if Bitcoin continues its hot streak at the same pace, it will become the focus of Forex traders once again.
Bitcoin Pattern Analysis (H1)
Bitcoin (BTC/USD)began the year 2015, trading at $313.92, which was later followed by a big drop of about 43 percent to $177.28, making headline news across the globe.The cryptocurrency then saw a steady climb in mid September. However, October was the time when Bitcoin surprised us all by making another new high, surging upward rapidly and consistently.
Bitcoin hada truly great run since October. It gained about 70 percent on private exchanges after hitting a 2nd half low of $213 in August.The currency was thus, up by more than 37 percent where Bitcoin hit its new high for the year, peaking at 333.75 dollars on 30th October. It opened at $313.31 in the morning and increased by 6.5 percent.
Over all, it is being said that it’s month long winning streak added nearly 42 percent to Bitcoin’s market value. The performance of Bitcoin on the BPI (Bitcoin Price Index) has also been gradual rather than sudden. Also, Bitcoin reaching $300 after a long time was psychologically “key”, giving traders’ bullish signals to start trading again.
What really surprised me, was its another 10 percent increase in a 5 hour span that was seen on 2nd November- perhaps its sharpest rise so far in the year. On Bitstamp, the currency hit $368.74-this was its highest in 11 months.
Does Bitcoin Present a Better Investment Proposition than Gold to Traders? (H2)
The upward surge in Bitcoin’s price has taken investors my surprise. Looking at the trends, I feel Bitcoin in most certainly on track to continue in the green while it’s unfortunate how Gold is set on the track for a loss.
In comparison to Bitcoin, Gold has slumped greatly, reaching its lowest in the beginning of November, closing at $1135.90 an ounce. Additionally, we all know that gold has an inverse trade relationship with the USD. And the interest rate increase by the Federal Reserve is expected to rob this precious metal of its real luster. This will make currency more attractive to investorsover gold.
Overall, I think the Bitcoin price has been quite stable-trading in the bracket of $250 to $300. If it continues to move up consistently above the 300 mark for long, it will be a game-changer as it will enter the positive territory for the year. And let’s just say; it will surely give Forex traders a hope to invest in Bitcoin for the following year.
Big Read |