#Bitcoin is #Trading at approximately $1,250 - $1,270 today - $100 higher than the preceding high which was posted in December 2013.
2017 has seen massive volatility for Bitcoin
2017 has been an extremely volatile year for the world’s first and largest #cryptocurrency market, Bitcoin. The year began with an emphatic break of $1000, followed by and aggressive run up to the test the previous all-time high of $1,160. The price action was predominantly driven by huge Chinese trading volume, which drove prices past the previous Chinese all-time high, reaching a peak of 8888 CNY before an aggressive slump back down to $900 USD and 6300 CNY.
Price action then crashed down to $750 USD and 5000 CNY amidst concerns over The People’s Bank of China conducting investigations into the operations of several major Chinese Bitcoin exchanges. The investigations resulted in a temporary ban on high leveraged margin trading within China, causing a 90 percent reduction in Chinese trading volume.
The U.S. markets are driving Bitcoin for the first time over in three years
The ban on Chinese margin trading has led to the U.S. markets driving the price of Bitcoin for the first time since 2013 - with U.S. Bitcoin markets currently trading at approximately 6 percent higher than Chinese markets. The ban has also greatly reduced selling pressure on the markets, which many traders have cited as the principal catalyst for the price gains of over $500 USD that has occurred over the last 2 months.
Many traders are suggesting that the trading volume that is taking place on the exchanges is only the tip of the iceberg, arguing that OTC (Over The Counter) trading has spiked dramatically since the Chinese margin trading ban. An exodus of Chinese trading volume from the exchanges to OTC orders would explain the huge decline in Chinese trading volume, as well as the dramatic price discrepancy which has opened up between U.S. and Chinese markets.
With new all-time highs being forged daily it is unlikely that Bitcoin’s momentum will begin to slow anytime soon, with many traders anticipating a parabolic move to the upside will be needed to trigger a major correction.