The Bitcoin bulls look to be losing control again. The Bitcoin price is currently standing where the rally itself took off. It started out on the 13th of July and it then formed a low of $6081. At this point, a lot of people were concerned as to whether or not the price could drop below $6000. The price then started to consolidate as things moved into July and at this point it was being traded at around 7236. By the end of July, it was trading at $8480 and investors even stated that it could possibly reach $10000 if it carried on going the way that it was. The price then started to retract again and now we are back at the consolidation range that is listed above. Bitcoins are skyrocketing to more than $12,000 for ONE BTC, and a lot of central banks warn that this could bring about a bubble risk. Britain and even the ECB want to try and monitor the trade for money laundering and they also want to make sure that global markets are also able to list Bitcoin future contracts as well. Now it’s important to understand that the recent surge in price is due to the following reasons.
One of the reasons is because more institutional investors are coming on-board. You also have the fact that Bitcoin ETF is coming soon and that more and more bulls are coming into town. The request for Bitcoin ETF has been backed for Tyler and Cameron Winklevoss and this has had a huge impact on the US Securities and Exchange Commission. A lot of people have stated that the reason why it has been rejected by the SEC is mainly because the department is very sceptical about the currency market. The department is in the process at the moment of trying to find out other applications for EFS and cryptocurrency. The problem is that Bitcoin futures are currently trading on two different exchanges and for this reason it is impossible to see that it will not be approved at some point by the SEC.
When you look at the bulls, it is important to know that there is something that needs some specific attention. Bitcoin volatility has really started to spike as of late and it is more than possible that this will attract spectators who focus on even higher volatility as well. So when you look at bulls and bears, you will see that it is important to look at the US Commodity and Futures Trading Commission. Every Friday they release their report regarding Bitcoin’s future. The report helps to break down the long and the short positions that are present at the moment. On top of this it categorises them as being non-commercial and then commercial. You also have the non-reportable positions. The charts that are out there really do try and tell a compelling story.