Is Bitcoin Forming a New Price Floor at $1,000?

Is Bitcoin Forming a New Price Floor at $1,000?

Bitcoin appears to be stabilizing at a new price point.

The value of tokens on the public blockchain protocol reached a high of $1,039 today, continuing their recent run of stability. At press time, bitcoin has been trading above $1,000 since mid-day on 14th February, according to the CoinDesk Bitcoin Price Index (BPI).

Yet, while promising, the digital currency may need to spend more time above this level before it becomes a new support, analysts told CoinDesk.

In interview, analysts largely expressed skepticism that bitcoin prices would remain north of $1,000 long enough for support to form above this mark in the near term.

Tim Enneking, chairman of digital asset hedge fund Crypto Asset Management, told CoinDesk that if the market stays above $1,000 for the next few days, support at this level could be plausible.

“I’d be astonished if we fell below $1,000 barring any external event,” he said.

Vinny Lingham, former Bitcoin Foundation board member and CEO of identity startup Civic, also voiced doubts about whether bitcoin could build support above that mark.

“It certainly could, but I think it’s unlikely,” he told CoinDesk.

Lingham has previously predicted that the digital currency will consolidate around $1,000 for the next month or two, clarifying today that he believes bitcoin prices will “for the most part” fluctuate within $50 of this level.

Petar Zivkovski, COO of leveraged cryptocurrency trading platform Whaleclub, also emphasized that this price does not represent a “huge support level”, but he expressed optimism about the general trajectory.

“The more time price spends above $1,000, the stronger that support level becomes,” he said.

One upcoming test, he said, will be if the price declines to retest the $1,000 level, and bounces back above it, providing evidence of support, and potentially, a sign the market could further strengthen.

Price charts image via Shutterstock

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Published at Thu, 16 Feb 2017 23:10:08 +0000