A brief history of Bitcoin and current trading levels
My chart data for Bitcoin starts in August 2011 when the cryptocurrency was trading from as low as $2.22 up to $15 before the end of the year. By 2013 it was gaining more attention as we spiked up to $259 by April, an enormous jump in just 32 months. However, by the end of 2013, Bitcoin had rocketed to a high of $1163, before a huge crash back to $382 a month later and as far as $152.40 a year later at the start of 2015.
By this time Bitcoin was hitting the mainstream news and I was being asked my opinion by friends and subscribers. How I wish I had bought some then as I had intended to, but never got round to. By November 2015 we had hit $500. By mid-2016 we had peaked at $778. This represented a whopping 410% gain in only 17 months.
But of course this was barely the start of the action. A significant sell-off followed to $465 and since then the market has been in a state of almost panic-buying.
By January 2017 the price had doubled again to $1000. By March we had hit $1350. A small sell-off to $891 followed by the end of March and then the market went completely crazy. Three months later the price had shot higher to $2980, a gain of over 230%. Another ‘crash’ of $1000 hit the market within a month but from the $1830 low Bitcoin jumped 172% to $4979.
Yet another crash took the price down $2000, this time in the space of only three weeks to $2972. Bitcoin has now risen from $1830 to $8354 in just four months. A gain of 356%.
Put another way, since 15 September, in just over two months, the price has rocketed from $2972, a gain of 181%. Or yet another way, in just 10 days the price has jumped from $5555, a gain of 50%.
As I write on the morning of Wednesday 22 November, the all-time high is $8354.46 but by the time you read this later today or even tomorrow, who could possibly know where the price will be? Well here’s my best guess at the levels worth watching in the hours or days ahead:
- Bitcoin bottomed just 30 pips below the $7820/7800 support and broke above $8270/8300. On further gains look for $8500/8550 and $8850/90.
- The first support at $8070/50 is very minor but strong support at $7900/7850 could hold the downside. However, further losses would target $7740/7700 before a potential buying opportunity at 7600/7560.
Please note that trading Bitcoin carries a high level of risk, including the risk of discontinuation. To learn more about trading cryptocurrencies, chat to the InterTrader team now.
Technical Analyst & Trader
The content of this article is the personal opinion of the author and not InterTrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.