Late on November 16th, Bitcoin broke the $8,000 level for the first time, capping out at $8,020 on Bifinex before receding to $7,900 at press time. It’s becoming repetetive to read about Bitcoin beating its previous high, but on this occasion it’s different – Bitcoin pulled off a massive head fake.
Taking a look back
When the SegWit2x hard fork was cancelled, the Bitcoin price instantly spiked from $7,200 to $7,800. But in less than an hour, the price was plummeting, sinking to a local low of $5,500. Meanwhile, rival Bitcoin Cash surged from $600 to $2,600, due to many Bitcoin miners switching to Bitcoin Cash and unconfirmed transactions peaking at over 135,000. Things were looking bleak for Bitcoin.
Bitcoin Cash began rapidly dropping from its incredible price ascent, causing miners to return to Bitcoin and the transaction backlog subsiding. Bitcoin’s price began to rise once more, and as good news arrived, the momentum increased. The good news was that the British hedge fund Man Group, managing over $100 billion, announced they would begin trading Bitcoin once CME’s futures market launches. Moments later, Payments app Square announced full integration of Bitcoin, announcing its belief that cryptocurrency can “greatly impact” an individual’s ability to take part in the global financial system.
More good news arrived yesterday as Coinbase announced Coinbase Custody; a Bitcoin storage service designed for hedge funds that may choose to invest in the digital currency. Coinbase acknowledged that over 100 hedge funds have appeared in the past year, looking to trade exclusively in digital currency. All that’s needed to add momentum to this surge is the existence of a trustworthy digital asset custodian to store client funds securely.
Bitcoin technical analysts predict that the currency is set to experience a significant price move. Its recent rapid climb would, under normal circumstances, suggest the price might experience a pullback now to consolidate before pushing even higher. But that $8,000 mark is the highest of in the trading channel that Bitcoin has been in for months, and a resounding push through this barrier could result in parabolic growth.