Bitcoin Builds Support Above $700 But 2016 High Proves Elusive

BitsPlan

Markets Weekly is a column analyzing price movements in the digital currency markets, and the technology’s use case as an asset class. This article covers 19th to 26th November.

Hot air balloon

Bitcoin continued to trade at elevated levels this week, repeatedly breaking past $750 and coming within reach of annual highs.

Having traded above $700 since 14th November as strong market sentiment fueled demand, bitcoin prices reached nearly $755 during the week, according to CoinDesk USD Bitcoin Price Index (BPI) figures.

While this appreciation allowed the digital currency’s price to come within $30 of the annual high of $781.31 reached in mid-June, bitcoin prices soon fell to as little as $713.13.

Amid declines like these, many market participants have put themselves into position to “buy the dip,” said Petar Zivkovski, co-founder and CEO of leveraged bitcoin trading platform Whaleclub.

“A relatively high amount of new money is coming into the system” to fuel this speculation, Zivkovski told CoinDesk, adding:

“This has resulted however in a very high volume of long positions with a high average entry price above $730.”

Rising enthusiasm

coindesk-bpi-chart

Joe Lee, founder of leveraged bitcoin trading platform Magnr, also spoke

Read more ... source: CoinDesk

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