Bitcoin price surges to $250

The price of Bitcoin has risen to $250 and 1,600 RMB in what can only be described as a gorgeous rally. No other financial market instrument can do this, and it is an unexpected reminder that Bitcoin has huge speculative appeal.

Bitcoin Price Analysis

Bitfinex 1-day chart

~From xbt.social's report earlier today:

Expect the price to reach the red daily 200-period moving average, which has not been seen in months, which could happen in the next few hours, and then expect a pullback from the $260/$270 level. If the current pull-up is the top of the band, then we may see the price retrace most of the upward trajectory. The depth of the correction will give a clue to where the next target position for the price is.

Looking ahead, the most likely scenario is that prices continue to rise (with a correction) to the highs seen earlier this year near $300 and $320.

Alternatively, this could be the first of a series of pullbacks and pullbacks, heading higher towards $300. However, this behavior is not characteristic of Bitcoin market volatility, but it does describe this year’s price pattern, at least so far.

A notable event: Bitcoin’s hard fork is scheduled for next week, with the Bitcoin version to be renamed BitcoinXT. McKeon responded to a direct challenge questioning him and Gavin Anderson’s decision to fork the blockchain to a larger block size:

http://sourceforge.net/p/bitcoin/mailman/message/34207335/

A measured response from original challenger Adam Baker:

http://sourceforge.net/p/bitcoin/mailman/message/34208939/

Not everything that can be counted can be counted, and not everything can be counted. – Albert Einstein

Summarize

Bitcoin speculators thought the start of the week would be a struggle, but were easily blown up to the $250 and 1600 RMB charts. A big rally occurred in the last 10 minutes, causing the price to surge from $242, and now we expect the price to continue to rise to $260-270 or a deeper correction before another rally. It's great to see Bitcoin re-emerge as a speculative asset.