It’s Wednesday, August 30th, I’m Kiana Danial, CEO of Invest Diva with NewsBTC and here is your crypotocurrency update.

When Bitcoin and other cryptocurrencies first made an appearance a few years ago, many people -- including myself-- dismissed them as a fad. But now, here we are, with an estimated 5 to 10 million unique active users of cryptocurrencies. Now Bitcoin has found a way in the luxury market. Some people are buying goods and services with Bitcoin, but many are simply holding it as an asset, like gold or art. With that, it is no surprise that we saw yet another surge of BTC versus the USD on Tuesday, hitting a record high near $4,700. However, it is important to remember that while BitCoin has generally been growing in price, hitting an all time high does not mean that we won’t see a retracement in the near future. The key level that BTC/USD could fall back to before further hikes, is the 23% Fibonacci retracement and key support level of 4,000.

In the past, BTC/USD has retraced all the way back to the 50% Fibonacci level so if history is bound to repeat itself, a temporary pullback towards 3,250 is also possible.

Long term investors could take advantage of these pullbacks to grow their portfolio.