Friday was a good day in the cryptocurrency space as ethereum (ETH) and Ripple, known by the symbol “XRP,” surged over 17% and 44.6%, respectively. Those are the second- and third-largest digital currencies by market value.
Bitcoin, the largest cryptocurrency by market capitalization, got in on the act, soaring 5.32% during the U.S. trading session to close just over $6,767.
Bitcoin’s all-time high of around $20,000 was seen in December 2017 and the digital currency has not even been close to flirting with those levels this year. Some market observers believe a return to $10,000 anytime soon will be challenging. Still, there are some important technical levels for bitcoin traders to acknowledge over the near- to medium-term.
“Traders should watch these two prices closely: $5,613.89 and $8,931.47,” reports Forbes. “The first price is the average of Hayes’ and Wheatley’s models. “The second price is an estimate produced by the Market Model, which combines the Hayes’ and Wheatley’s models.”
The Importance Of Those Price Points
The aforementioned price points are, in the eyes of some technical observers, highly important for bitcoin.
“Simply put, the two prices reflect both demand and supply factors rather than just demand or just supply factors, as is the case with prices estimated separately by either the Hayes’ or the Wheatley’s models. And that makes them less extreme,” according to Forbes.
Traders expect bitcoin, the largest digital currency by market value, to remain range-bound over the near-term. Among the myriad issues facing bitcoin and other cryptocurrencies is adoption. As in when cryptos will become more widely accepted and used for mainstream activities, such as basic payments and money transfers, on a larger scale.
“Meanwhile, experts are divided on the direction of the digital currency. David Drake, founder and chairman of LDJ Capital, for instance, expects bitcoin prices to trade slightly above $8,931.47, though that will take a longer investment horizon than seven days,” reports Forbes.
As Forbes notes, some bitcoin market observers believe it is unlikely the digital currency slips back below $6,000 while others are surprised it has remained above that technically important for as long as it has.
For more information on the cryptocurrency market, visit the Bitcoin category.