Bitcoin is about to reach a new peak

The price for Bitcoin broke through $1,300 on Thursday, within spitting distance of its all-time high, but investors are growing cautious.

The cryptocurrency's price has risen around 4.5 percent since the start of the week, according to CoinDesk data and spiked yesterday to $1,306 on hopes that U.S. regulators would approve a key trading product for the digital currency. The price fell overnight but is back around $1,300, not far from its all-time high of $1,325, which it hit on March 10.

However, some bitcoin investors are growing concerned. The buy and sell ratio for bitcoin is balanced almost evenly over the past 24 hours, albeit with slight more sells than buys, and currently there are around 6,000 more short positions than long positions on bitcoin, according to Bitfinex data.

These investors are cautious as the last few times bitcoin has tested these levels it led to sharp sell-offs. On March 10, bitcoin fell to $1,085. Later in March, the digital currency dropped from around $1,260 to $950 over the course of a few days.

The reason for the recent climb in bitcoin prices is optimism after an announcement in the U.S. that the Securities and Exchange Commission (SEC) is reviewing its decision to reject a bitcoin exchange-traded fund (ETF) proposed by Cameron and Tyler Winklevoss.

Source: Bloomberg

Trader I. Ivanov

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