Bitcoin goes up, but there are obstacles – analysis of rate for June 1 and forecasts
Bitcoin is fighting for position. Reaching a high of $7609 on Thursday, the first cryptocurrency has slightly fallen in price and is now trading above the $7500. Trading activity on the exchanges is low, but the growth potential is preserved, while the price is above $7500.
Yet on the news the market is quiet. Bulls insufficient incentives for active purchase. However, even the staunchest skeptics are slowly changing my mind. In his speech in Stockholm , the Bank of England mark Carney, the well-known cryptogamic, have confirmed their interest in blockchain technology. “If we limit ourselves to a change in the payment system or go all the way to the digital currency issued by a Central Bank? This is definitely one of the most interesting and important areas”.
The technical picture
On the daily chart the currency pair BTC / USD got support at $7416 (200-day moving average) and $7373 (100-day moving average). Strong resistance is waiting for bitcoin at $7600 and $7,683 (23.6% of Fibo). To confirm the change of trend is up, the first bitcoin you need to break the mark of $7600 and to gain a foothold on it. The RSI is in neutral zone, everything points to the fact that buyers want to return to the market. If bitcoin fails to break the resistance will be followed by another rollback to $7000.
Previously on this topic in the 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.
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:
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.
28.04.2018: the Three main directions of development of bitcoin
Crypto enthusiast Nick Szabo has published in his Twitter the 3 main, in his opinion, the directions that are necessary to develop the field of cryptocurrencies in the near future.
The most important development of cryptocurrencies over the next few years:
- More secure storage (key management);
- Decentralized exchanges;
- Make the second level more friendly to the user, especially through automatic routing, while not sacrificing the minimization of trust
He commented on these provisions as follows. In his opinion, the keys should be maintained throughout a person’s life and can be inherited, and needs to be found solutions for their wider use.
Regarding the decentralization of exchanges, Nick Szabo, believes that Bitcoin is the most secure financial network on the planet. But peripheral companies are among the most unsafe.
His words are confirmed by the recent events on the next breaking of the exchange and cryptocell.
As regards the third item, first of all, he meant “add-on” Lightning Network in the bitcoin blockchain, which has undoubted advantages (fast transactions with minimal fees), but it requires technical expertise that deters potential users.
Previously, Nick Sabor criticized by numerous experts and analysts who have a negative attitude towards cryptocurrencies not understanding their essence and hang different labels, like “biggest bubble” and the next Tulip mania.
He is confident that by giving such a cliche, such experts oppose the new asset by inertia, because they are too lazy to understand the nuances of the functioning of the cryptocurrency market.