WEEKEND ANALYSIS: THREE POTENTIAL BITCOIN PRICE PATHS
The Bitcoin price is likely to continue sideways consolidation since last Monday’s low near $460 (Bitstamp). Weekend trade has failed to exceed the past week’s highs and lows in the cramped range between $460 and $490. There are three potential paths for Bitcoin Price.
Bitcoin Price Background What Determines the Bitcoin Price?
Bitcoin Exchange buying has the effect of pushing the Bitcoin price up. The bitcoins are changing hands – from the exchange to the buyer – and, hence, there is an associated Bitcoin transaction. Yet, it is the exchange transaction that generates the increase in the Bitcoin exchange rate. The same but opposite is true for exchange selling: bitcoins change hands resulting in a blockchain transaction (which doesn’t affect price), and the Bitcoin exchange transaction causes price to go down. In addition to all other network transactions, exchange buying and selling is, therefore, reflected in the blockchain. Notice how the range of the number of Bitcoin transactions has been contracting since mid-March 2014.
This post was published at Crypto Coins News on 15/09/2014.