After a fruitful four weeks for owners of digital currencies, which has seen the total value of all coins climb 72% to $460 billion, one analyst suggested owners take stock as the No. 1 digital currency enters a crucial level.
Bitcoin, which accounts for 36.1% of all coins, has closed in on resistance near $10,000 and it’s 200-day moving average at $10,015, a closely watched gauge of momentum for technical traders. Bitcoin hit an intraday high of $9,790.94 on Friday.
“Bitcoin continues holding above [$9,000] and so far things look good. But there comes a point where holding these levels goes from being resilient, to an inability to move higher,” wrote Jani Ziedins of Cracked Market in a Friday blog post.
After stalling in the $9,500-$10,000 range in recent weeks, Ziedins warned that, despite the resurgence in digital currencies, don’t expect it to be a one way street ahead. “The trend is still lower and we need to be very careful here. This is still a better place to be selling than adding new money.”
A single bitcoin BTCUSD, +1.32% last changed hands at $9,628.02, down 0.3% since Thursday’s levels at 5 p.m. Eastern Time on the Kraken exchange.
Chinese billionaire amassed 10,000 bitcoins in Q1
Cai Wensheng, the founder and chairman of Meitu, a Chinese photo app, said he purchased 10,000 bitcoin on the price decline in the first quarter.
In a Q&A session on messaging service WeChat, the billionaire said he slowly amassed his digital currency fortune as the price fell.
“In January of this year, I only had a single digit bitcoin, just playing tickets. When I determined that the blockchain and Bitcoin were the future, I set myself a goal of owning 10,000 Bitcoin,” said Wensheng, according to a translated version of the Q&A.
“Now this small goal has basically been achieved.”
The total value of his bitcoin holding is just shy of $100 million