Do we have a $11,500? Bitcoin price has been highly volatile these past few days, even more so than usual, with $1,000 swings a norm. But investors are bullish on its prospects now.
That’s because the Tokyo whale that was selling the digital currency to pay off creditors has taken a break.
It was revealed in documents (PDF file) published last week that a trustee of the defunct Bitcoin exchange Mt. Gox had sold roughly $400 million worth of cryptocurrency. Nearly 36,000 Bitcoins made their way to the market, ultimately driving price down.
And while it is unclear whether these coins were sold directly on an exchange, or over the counter, what is clear is that the remaining liquidity will not happen until fall this year — the selloff has been paused until the next court hearing on September 18, 2018.
This, some analysts believe, is helping shape sentiment.
Bitcoin prices recovered briefly this week, closing at a high of over $9,885 on Monday, rising 6.96%.
After falling below the $10,000 mark, Bitcoin shed nearly 18% of its value in a matter of two days, partly due to the selling pressure, but also because of developments like statements from the US Securities and Exchange Commission where the agency expanded its scrutiny to cryptocurrency exchanges.
Also worth a mention are the Chicago Board of Exchange Bitcoin (CBOE) futures contracts that expire Wednesday, and these are also playing a part.
With all this behind, investors are now anticipating a possible trend shift. And while there is no definitive bullish or bearish direction now, a breech of the resistance zone at $11,500 could potentially spark a breakout.
All should be clear by the end of the month.