The Bitcoin exchange rate rose last Thursday by just under 2% and thus came very close to the 630 US dollar mark again for a long time.
The Bitcoin loophole price upturn of the past few days cannot be associated with any relevant media event
The Bitcoin loophole trading volume was also at a generally low level. In view of these two lukewarm factors, Petar Zivkovski of Bitcoin Whaleclub concludes that Bitcoin loophole has a short but strong impulse. Currently the price is 548 Euro and 618 US-Dollar respectively.
The price increase over the past six days with the final push on Thursday was accompanied by a long-term optimistic attitude of investors. According to Whaleclub data, the share of long positions was 87%. Also on Sunday, when the price per Bitcoin cracked the 600 US Dollar mark again for the first time, the share of long positions was 80%.
The breakthrough above the $600 mark was a psychologically important step for Bitcoin. After the Bitfinex Hack, in which more than 120,000 BTC were lost, the price was far below this mark for a long time. The market reacted promptly with a 20% drop in prices.
Speculators still dominate the market
Zivkovski is not alone in claiming that the Bitcoin market is largely driven and determined by speculators.
Cryptocurrency investment fund manager Jacob Elioshoff says the Bitcoin market has a not too healthy speculator/user rate:
“Most traders buy only with the goal of making the biggest possible profit. I think if Bitcoin continues to expand its user base, we will see less up and down price jumps.”
Should the digital currency actually benefit from a rapidly growing user base, we may be able to expect an equally rising exchange rate.
However, as this scenario takes time, Zivkovski assumes that the Bitcoin price will continue to rise sharply once the USD 600 mark is reached.
“The price above the USD 600 mark remains stable without any significant setbacks. In addition, we are increasingly reaching new highs, which speaks for a bullish sentiment. I.e. new capital flows into the Bitcoin market.”
Zivkovski believes that the currently prevailing market dynamics can drive the price up very easily and quickly. With a strong firepower to crack the resistance of the 640 US dollar mark this should be possible.
On the other hand, the exchange rate could also fall below the 600 US dollar mark and put a quick end to the short-term upswing.