Bitcoin at a crossroads – analysis course for June 8, and forecasts

0

Bitcoin is testing the resistance line of $7700, but so far without success. Bullish momentum is weak and buying activity is not enough to rally to $8000 and above. Traders expect that in the near future the situation will be resolved.

Currently, the exchange graph a trend line has formed a symmetrical triangle. The falling trend line that starts from a record December high, intersects with the current trend, forming a large symmetrical triangle. The break of one of the two lines and determine the movement of the trend. While bitcoin is clamped in the channel 7500-7700 dollars and can’t escape.

The technical picture

Indicators give mixed signals. MACD indicates further upside, 100-day moving average is above the 200-day, but trading volume is gradually reduced. RSI indicates overbought bitcoin, but buying activity can still withdraw cryptocurrency to a new level. The cryptocurrency is trading inside the cloud Ichimoku is indicates that the main trend is not detected: possible both growth and decline. In case of breaking the resistance line of $7700 and stable growth above this level, bitcoin can reach up to $8000 already for a couple of days. Otherwise, expect a fall to the nearest support line of $7400 and a re-test of resistance. Market cap is $130 billion.

Previously on this topic in the news:

01.06.2018: 4 myths about bitcoin, in which I believe even professors of Economics

Well-known British economist and honorary Professor at the University of Warwick Robert Skidelsky last week published an article urging people not to try to reinvent the wheel coin with bitcoin. However, cryptoanalysis not enthusiastic about reading material and say that Skidelsky stuck in the 20th century and believes in myths about bitcoin.

TOP 4 myths about bitcoin:

  • Bitcoin is created out of nothing. Accordingly, he cannot claim the role of money. First, the value of bitcoin consists of several factors: energy costs, equipment, software, resources to run and support the network. Secondly, if bitcoin is not legal tender, as a medium of exchange and the digital asset is functioning perfectly, that is, de facto is money.
  • The lack of resources. It is known that the amount of mined bitcoins is limited. Today in circulation for over 17 million coins. Skidelsky believes that in the end bitcoin will face the same problem as gold is the lack of sufficient resources. First, Skidelsky thinks ahead, after all, experts estimate that the last bitcoin will be mined in the year 2140. Second, unlike gold, bitcoin is just the name of a digital unit, in fact each coin is divisible into satoshis. So 21 billion bitcoins is more than 2 quadrillion Satoshi, who will always be in Vogue, and the network will be upgraded to provide even smaller amounts.
  • Deflation. Due to the hard limit of bitcoin is actually deflationary currency, and Skidelsky forgot to mention it. However, previously well-known economist Robert Murphy explained that bitcoin is not so clear. In his opinion, people will continue to invest in the scarce but liquid and quickly traded goods. Even with the fall of all the main indicators: mining, number of services and companies that use cryptocurrencies continue to grow. If one currency is subject to deflation (deficit) and other inflation (as Fiat money is printed every day) – what will you choose?
  • Inflation. The reverse side of the coin, Skidelsky points out that the cryptocurrency is not protected from inflation. However, the scientist does not specify which inflation is a price or monetary suggestions. It is the habit of Central banks to print more money may lead to inflation. The issuance of bitcoin is not only monitored, but also completely transparent. Even gold may not be so all the time – you never know how much it will produce. Millions of people using bitcoin, you know that supply is limited, and choose scriptactive voluntarily as a store of savings or means of payment.
  • Cryptocurrency is a revolutionary idea, which is good because people can choose what to invest in. History shows that all the time, there was a power (government, Church, banks) that maintain a monopoly on currency. Now people have a choice between banks and decentralized monetary networkthat is not controlled by anyone.

    News

    28.05.2018: “Buy bitcoin, sell altcoins!” – investor from wall street

    Venture capitalist Spencer Bogart said in an interview with CNBC that bitcoin will remain a strong asset, despite the recent fall in prices. By the end of 2018, the cost of the first cryptocurrencies will rise above $10,000.

    Bogart is a partner of large VC firm Future Capital. He is the first analyst on wall street who seriously researched bitcoin and blockchain technology. In his interview with Spencer Bogart said:

    “Bitcoin is already 3 weeks down in price, but long term Outlook remains unregistered. The institutionalization of bitcoin needed. Every major Bank is trying to do something in the cryptocurrency sphere. Now there is a stable bear market, and for the first time no one predicted “the end of bitcoin“.

    Altcoins will not survive the competition

    Bogart also said that the cost of many of the altcoins are overpriced and in the long term, they can face significant resistance. The analyst said sell assets such as IOTA, TRON, Cardano, NEO, but will hold Ripple, Bitcoin, Cash, Ethereum, EOS. The expert says: “In the long run Ethereum have a good prognosis. The future of cryptocurrency will be closely connected with the development of ICO, but now its price is affected by hyped tokens created on the platform.”

    The expert added that the instability of Fiat currency and the national currency crisis contribute to expanding the use of bitcoin. Spencer Bogart made his prediction that by the end of the year bitcoin will be worth at least $10 000. More optimistic experts believe that the price will reach $20 000.

    News

    21.05.2018: 5 factors that affect the price of bitcoin

    The price of bitcoin has always had tremendous volatility. 2 months of 2017, the rate has increased by 223%, and just as easily fell by 60% in January-February 2018. What factors provoke the UPS and downs of the digital currency, and affect its value?

    5 factors affecting the price of bitcoin:

  • Supply and demand. Like any currency, bitcoin is affected by supply and demand. Mining bitcoins is similar to gold mining. Gold supplies are limited: to bring it to market, people need to get it. Also with hashing: the more people want to get bitcoin (and at the moment produced 17 million coins) – the higher its price.
  • Media. Fiat currency is less influenced by newsthan cryptocurrency. Positive news contributes to higher prices, the negative can derail the course. Stores that accept cryptocurrency as payment, companies that adopt the bitcoin system known investors who believe in digital assets – such news is going to benefit and enhance the credibility of virtual money. For example, the operator BitPay recently announced that it will be possible to pay taxes in Bitcoin.
  • The policy changes. Bitcoin is not controlled by the government and financial institutions – that’s why people paid attention to it. However, an official ban of the use of cryptocurrency (Pakistan, Kazakhstan, China, India and other countries) contribute to the depreciation.
  • State regulation. Decision regulating the use of digital currency can cause major fluctuations. For example, when Japan has recognized bitcoin as legal tender, the price of the asset began to grow rapidly. While the official means of payment bitcoin recognized a few, mostly the government equates it to the property.
  • Change the rules of the system. We will focus on hardforce – branches from the already existing cryptocurrency. There is a new currency, with similar characteristics, but working by different rules. Typically, the hard forks , the demand for bitcoin increases.
  • Experts believe that due to the fact that a reduced amount of bitcoins will continue to grow demand for them. Many predict that by the end of 2018, the first cryptocurrency would cost $20 000.

    News

    Leave A Reply

    Your email address will not be published.

    This site uses Akismet to reduce spam. Learn how your comment data is processed.