Positive ‘price drift’ suggests bitcoin has room to move higher

Bitcoin showed further resilience Thursday, building on sharp gains already made earlier in the week.

Often in the past, sharp moves higher in the price of the No. 1 digital currency have been followed by pullbacks, or at the least, consolidation. This time, Bitcoin has recorded five consecutive winning days and the “price drift,” when an asset drifts in the same direction after a sharp move, suggests there’s more to come for world’s biggest digital currency, analysts say.

“All in all, we believe that when we see signs of price drift that it indicates that the current price may not be the fair value price. All the information that is relevant may not be fully priced in,” wrote Thejas Nalval, portfolio director, and Kevin Lu, director of quantitative research, at Element Asset Management, in a note.

“And in the case of positive price drift, it means that bullish market sentiment has not been fully realized in the supply-demand equilibrium and that the price likely has more room to go,” they said.

A single Bitcoin

BTCUSD, +1.54%

was last valued at $7,371.24, up 0.5% since 5 p.m. Eastern Time Wednesday on the Kraken crypto exchange.

Read: Barry Silbert says Bitcoin put in its 2018 low, but 99% of cryptos are worthless

We should ban Bitcoin mining: California congressman

During a Wednesday hearing of the congressional financial services committee, notable cryptocurrency detractor, California Democrat Brad Sherman, said the U.S. should ban the buying and mining of cryptocurrencies.

“We should prohibit U.S. persons from buying or mining cryptocurrencies,” says Rep. Brad Sherman, a senior Democrat on the House Financial Services Committee.

— Colin Wilhelm (@colinwilhelm) July 18, 2018

These comments should come as no surprise. Sherman has in the past called cryptocurrencies a “crock,” saying they are popular with guys who sit around in their pajamas and tell their wives they’re going to be millionaires.

Read: Fed’s Powell says cryptocurrencies have no intrinsic value

Subdued beginning for altcoins

Coins other than Bitcoin, colloquially known as altcoins, are off to a quiet start to Thursday trading. Ether

ETHUSD, +0.12%

is up 0.8% at $477.20, Bitcoin Cash

BCHUSD, +0.80%

has gained 0.7%, trading at $828.10, Litecoin

LTCUSD, -0.93%

is in the red to the tune of 1.5%, last trading at $86.87 and Ripple’s XRP coin

XRPUSD, +0.88%

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