There is just one word for Bitcoin’s price action today: amazing. The price of one coin rises 15 percent today. With that, it breaks to all-time highs, it crosses for the first time ever $3000 per coin, and it breaks through a very important resistance ($3000). Those are 3 meaningful events, so investors should not underestimate the importance of today’s events.
We explained earlier today that Bitcoin Cash is underperforming, and highlighted the reasons we see for that underperformance. That comes after Bitcoin got forked and Bitcoin Cash was born last Tuesday.
From a chart perspective today’s breakout is the most striking evolution. As seen on the 12 month price chart of Bitcoin there have been 2 strong rises which were both followed by a short consolidation period. The last rise was April – June 2017 and the consolidation that followed took basically 7 weeks (2nd week of June till today). With today’s breakout, the recent consolidation is coming to an end, and a new leg higher is starting.
It is clear that we have to revise our bitcoin price forecast for 2017. We wrote some 2 months ago: “We believe that Bitcoin will remain range bound between $2000 and $3000 in 2017.” Given today’s price action in Bitcoin we can only conclude that it is going sharply higher, and that it is sending most other cryptocurrencies higher as well.
We recommend readers consult our 10 Investment Tips For Cryptocurrencies Investing which has lots of actionable tips. They are applicable as we see the start of the next rise in cryptocurrencies.