The price of Bitcoin is on the rise again, but how high can it go?
Bitcoin broke $7,500 on Monday, hitting a two-month high. Earlier in the session, it reached an intraday high of $7,770.58, the highest level since May 23.
Why is Bitcoin price rising again?
Here's some insight from CoinDesk: The fact that the BTC price rally from the seven-month lows below $6,000 is accompanied by the sharp rise in the dominance rate indicates the bargain hunters are likely betting on further sustainable gains in BTC prices and are not buying BTC to venture into alternative cryptocurrencies.
In the latter case, the dominance rate of alternative cryptocurrencies over bitcoin rises sharply. This usually happens when BTC valuations start looking overstretched and in response investors begin rotating money into other innovations (as happened in late December 2017/early January).
So, a sharp rise in the BTC dominance rate, as seen in the last four weeks, could be considered a sign of investor confidence in the current BTC price rally.
Hence, BTC could soon find acceptance above the key 100-day moving average (MA) hurdle and cross the $8,000 mark in a convincing manner.
G20 summit boosts Bitcoin?
Bloomberg thinks Bitcoin may be benefiting from crypto talk at the G20 summit.
Some traders will have been heartened after the Group of 20 nations’ decided to only reiterate that crypto-assets lack attributes of sovereign currencies, without providing much detail on how member states should regulate them.
They said crypto-assets “do not at this point pose a global financial-stability risk,” while asking an inter-government panel that combats money-laundering to “clarify in October 2018 how its standards apply to crypto-assets.”