Bitcoin prices have remained at lofty levels after reaching a record high earlier this month. (Photo … [+]
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Bitcoin prices have been trading north of $33,000 since this afternoon, fluctuating close to the record level of more than $34,000 they reached earlier this month.
The world’s most prominent digital currency rose to as much as $34,435.42 at roughly 5:45 p.m. EST, according to CoinDesk data.
At this point, the cryptocurrency was less than 0.1% below the all-time high of $34,452.08 it set on January 3, additional CoinDesk figures show.
The digital asset has been on a roll, hitting a string of fresh, all-time highs after breaking through the prior record level of roughly $20,000 that had stood since late 2017.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
As for where bitcoin prices may go from here, several market observers weighed in, offering technical analysis.
“As we’ve repeatedly seen, particularly in the absence of other technical trading data, the BTC price is attracted to round numbers,” said Tim Enneking, managing director of Digital Capital Management.
“Now that the price is so high, it’s the ten thousands, rather than the individual thousands, which are receiving this sort of attention. That’s clearly true at $30k and it will probably be even more true at $40k.”
‘Uncharted’ Territory
As the digital currency has been climbing to fresh, all-time highs, it has been encountering little resistance, Enneking stated, emphasizing that we are currently in “uncharted” territory.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, offered a similar point of view.
“The fact bitcoin has bounced back after hitting $30,000 and then moved right back to the $34,000 range is bullish, but it should not be viewed as strong support or weak resistance because there is so little history at this price level,” he stated.
As for what the digital currency might do in the coming weeks and months, both analysts weighed in.
Enneking described bitcoin’s move to $34,000 as being “an ‘overrun’ of $30k,” adding that “the price has been oscillating around that level (down to $28.5k, up to almost $33k, down to just under $30k, etc.) since then.”
“It seems quite clear that this short-term consolidation in the low $30s is in preparation for an assault on $40k,” he added.
Pearlstone also spoke to the aforementioned price level, predicting that if investors can push the cryptocurrency above $40,000, “the next resistance will be at the key price level of $50,000.”
However, he emphasized that if bitcoin breaks below $27,500, it is a “high probability” that the digital currency will retest $20,000.
Alex Mashinsky, cofounder, chairman and CEO of Celsius Network, also weighed in, noting that while there are many reasons to support a bullish case, the digital currency climbed more than 300% in one year and is “overdue” for a pullback.
“I expect a severe 30% correction between now and March, and then we will see new highs of $50k or more,” he stated.
Mashinsky also spoke to the factors that would be needed for bitcoin to climb to a six-figure price tag.
“For us to go over $100k, we need to see the new administration embrace BTC and ETH, and clear the path for institutions to join the party.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
