The price of Bitcoin has started to rise again, following a blip experienced during the week commencing 8 October.
This was due, in part, to share prices on Wall Street dropping.
Trading in the cryptocurrency started off at £4,743.47 ($6,232.67) on 15 October and ended the day at £4,968.83 ($6252.78).
Analysis Of Price Action
The price of Bitcoin rose to reach a price of £5,928.46 ($7,778) at one point during trading. This represents a two-month high for the cryptocurrency.
Investors have been rather dubious about the cryptocurrency in recent weeks, however, believing it’s trading in a rather bearish fashion.
If the price fluctuations on 15 October are anything to go by, though, the cryptocurrency could soon be moving into a bullish trading scenario, which is good news for investors that piled money into the currency when prices peaked in December 2017.
Any Bitcoin price drop which goes beneath the £4,679.50 ($6,150) low point seen on 15 October is likely to indicate the cryptocurrency is moving back into bearish territory, however.
The lowest rate it’s been in the past few months was £4,413.19 ($5,800), in June.
Emergence Of Stablecoins
One of the reasons mooted for Bitcoin’s 9% increase on 15 October was that investors were selling off the cryptocoin Tether and choosing to invest in a more stable Bitcoin.
Tether is known as a stablecoin, as it’s a cryptocurrency which is pegged to a stable asset, but is rumoured to be on the brink of collapse.
Tether was pegged to the US dollar, but lost its peg rating on 15 October, causing trading prices to drop considerably and end the day at £0.74 ($0.977083).
It’s rumoured that the Tether price drop is due to loss of trust in the markets which may lead to a sell-off for the stablecoin.
Some of the new stablecoins coming to the market include TrueUSD, Paxos Standard and Gemini Dollar, and all of these reported gains throughout the Tether sell-off on 15 October.
TrueUSD is performing particularly well in the turbulence connected with the Tether market and is presently trading at 3.7% higher than the dollar.
Tether Live Price Chart
Technical Analysis – Learn how to read price action to predict future movements.