It seems all the optimistic news supporting bitcoins as a currency of choice, the growing number of online merchants adopting bitcoins as a payment option, and a steady growth of bitcoin investors have all created a bullish atmosphere to bitcoin trading.
New York, NY -- (SBWIRE) -- 05/30/2014 -- For roughly a month succeeding the May 19th price, bitcoin trading was on a moderately rigid band near the $450 level. This was followed by a remarkable increase in bitcoin price with a firm ratchet uphill. May 27th marked a $590 price corresponding to the 64% gain from the low price of $360 dated April 10th.
With the uneven momentum in the market, it can be considered as a vital technical doorsill for bitcoin price with the trading being reversed lower than its 50-day shifting mean price for the first time since the early part of February. Investors are currently looking at the breaks above and below the different movement in the average pricing and take these movements as a directional indication of where the price may go.
The apparent break above the 50-day average shift is a bullish technical sign of where the price of bitcoin is headed to in the next few months. This upward trend is attributed to the momentous boost of USD trading volume. Bitcoins traded on average reached to a whopping double the average of 41,000 each day from May 19 to 26. It should be noted that the onslaught of Chinese authorities on bitcoin’s ability to be traded by Chinese banks during the latter part of March until early April still creates an incomparable USD volumes as compared to the recent figures.
What’s with the rising bitcoin prices? So far, there is no clear indicator as to the reason why bitcoin price is rising. One factor that can postulated that might have contributed to the upward movement is the increase in bitcoin transactions which demanded more commercial use for bitcoins. Use of bitcoin in aggregate bitcoin transactions has stayed comparatively steady though.
The fear over bitcoin trading operations in possible need for a relocation has started to fade as bitcoin exchanges which are currently housed in China continue to conduct operations there. Evidently, current trading levels at CoinDesk CNY Bitcoin Price Index factor exchange BTC proves that trading volumes may soon stabilize again in China.
eBay’s positive response to including bitcoin as one of its payment options can also be considered as a factor in the increase in bitcoin prices. If this move would push through, butcoin would experience a major leap as more and more people would be introduced to its use causing a more drive to increase its value.
There are other factors that can be considered why bitcoin prices continue to rise. The $30 million undertaking of BitPay – one of the bitcoin payment processors is a milestone as well as venture capitalists see a pot of gold with bitcoin trading in parallel with its market growth prospects.
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