Panic Buying Takes Bitcoin Price over $400

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Panic Buying Takes Bitcoin Price over $400

ForexMinute.com – The Bitcoin price in the US market has crossed the much-awaited $400 level, opening scope for a near-term bullish channel. During the 11/11 trading session, the price was in an oversold region and bearish cracks were widening. But the good-old optimism came after OKCoin’s announcement to start a $3-million hedge fund on their platform.

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Incidentally, the last time Bitcoin traded above $400 was on 25-26th September. October came as the most devastating month for Bitcoin and the entire cryptocurrency sector, where bears started to sell over the coins at $398, specifically due to the absence of genuine buying pressure. There the price went as low as 318, and also suffered a flash crash when an alleged bearwhale sold over 30k BTC in a single deal. This incident took BTC/USD to 285.

The market however rebounded from the double-bottom as bullish correction began to appear, taking the Bitcoin to $398 within just 10 days of the fall. But the price failed to sustain there and once gain went into the hand of bears, falling massively to $318 by the end of the October month.

As the market entered the November month, the Bitcoin price was almost under huge selling pressure and was hinting to go either way. However, the BTC/USD found solid support level at 320, which initiated a short term price rally to the north. By the end of November 6th, the pair was being traded at around $347. It stayed there for a little while, and fell a little to the south to eventually find yet another solid support at $340.

The BTC/USD there started to rally upwards, converting the prevailing bearish sentiment to bullish. Buyer began to arrive, trading volume improved and the BTC/USD finally crossed over the $400 mark during the November 12th trading hours.

What now?
From now, the daily chart signals are entitling $430 as the next resistance level, after which the trend may rebound to south, sighting $400 as a strong support level. One also has to wait for the Singles Day, currently being celebrated in China. Usually, this event generates a lot of ecommerce sales that might have worked in favor of Bitcoin in today’s trading session. If the price rally continues in the next 24 hours, then we are in a strong, and long term bullish channel. There the price is expected to touch the $450 mark.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com