The gradual, nervous, recovery of Bitcoin from its mid-August lows continues – with an overnight spike pushing it back towards the $7,000 mark.
The UK’s bank holiday weekend has seen the price of Bitcoin get a $350 boost, including a significant spike overnight Monday/Tuesday that has sent BTC back above $6,900.
Here, you can see how trading over the weekend on BitFinex has pushed Bitcoin’s price northwards. The most notable element of that is, of course, that spike just after midnight (GMT+1) which appeared to be triggered by a concerted move about $6,750.
The slow progress back towards $7,000 continues a slow process of price recovery for Bitcoin as it attempts to come back from the mid-August lows that briefly saw it dip back below $6,000 for the second time in 2018.
That in turn is part of a longer term trend that has seen Bitcoin in a steady, though erratic decline throughout 2018. We’d probably wager that you don’t need – or particularly want – to see that in graph form, but in case we’re wrong, here it is.
If we were the kind of people that enjoyed drawing lines on graphs, we’d probably point out that this overnight boost – though positive – and seen coming by some – is not enough to break Bitcoin out of its downward trend yet. A line across those three peaks from early March, early May and late July would appear to indicate that we’d need to get above $7,000 to even continue the established decline – and probably aren’t into anything of real note in terms of Bullish movement until the price can get back above the level it was at the beginning of August.
Another word of caution. Last week’s aborted recovery – which began in a very similar manner – ended with the charts forming what we’ve heard described as a ‘Bart Simpson’. It’s characterised by a sharp gain, level trading and then a sharp drop-off as hopes of a recovery wane and traders cash out. So look out for the downside of this in the coming days. Here’s what last week looked like, for reference.
And here’s what the price of Bitcoin looks like now.