There is no doubt about the recent hike in the price of Bitcoin. No speculations or financial predictions ever indicated the potential of virtual currency until the second half of this year when the prices started to augment beyond the equilibrium value. Just a week back, the Bitcoin crossed the ceiling of $16000, and just today, the slab of $17801 was also crossed. Investors are hoping that by the start of next week, the prices would touch the $18000 mark. According to the values provided by BPI (Bitcoin Price Index), the virtual currency reached the highest mark of $17804 by 10:30 UTC which was beyond the previous highest mark of $17631.42 which was achieved on 12 December.
The price of Bitcoins has fluctuated so dramatically in the past week that it is almost impossible now to prognosticate any appreciation or depreciation in its worth. In spite of touching the zenith point of its value, the virtual currency was fickle enough to have a value change every moment somewhere around the mark of $16000. The investors have portrayed a “buy the dip” mindset of trading which means that after buying virtual coins after a dip, investors are buying the commodities at a discounted sale price.
According to the recent projections based on the past data, the price of Bitcoins is expected to go beyond $20000 in the coming week. The analysis is based on different methods employed like the moving average concept, relative strength index, and several other measures have been employed to forecast the appreciation in the worth of Bitcoins in the coming week.
We see the mass polarization of investors into two extremist groups, the ones who think that the future of money market is related to virtual currency continue to be its proponents, while on the other hand, the opponents of virtual currency consider the market as a bubble that will soon explode and result in an economic crisis like the one that occurred back in 2008.