The growth of bitcoin – just another correction? – analysis of rate for may 31, and forecasts

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At the time the bulls managed to take control of digital market, over the past day the first cryptocurrency was able to perform a pullback in the $7500, but many experts believe this growth is a correction, and the sale of the asset can be renewed.

Bearish trend is not yet defeated, buyers in the market behave not active enoughto cause a steady increase in rate. After analyzing the graphs, we can say that bitcoin tried to break out of the descending channel, but could not break through the resistance line of $7600.

Experts say that in addition to the projected adjustment to the exchange rate of bitcoin is influence and negative comments. For example, Nobel laureate in Economics Robert Shiller predicted that in the next 100 years bitcoin will disappear. CEO Ripple brad Garlinghouse said that soon the impact of bitcoin for other cryptocurrencies will end.

The technical picture

While all indicators point to the downward movement: bitcoin is trading below the Ichimoku cloud. MACD also tells about the superiority of the bears: the 100-day mA is below the 200-day, and the path of least resistance for cryptocurrency – down. RSI indicates oversold, so the bulls have the advantage. If bitcoin will not stay at $7500, he again came back to $7000, re-testing the support line. If cryptocurrency continues to rise, we should expect a rally to $8000 and above.

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.

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24.05.2018: Tom Lee: “3 reasons bitcoin will rise to $25 000”

Tom Lee Lindstroma prediction on which bitcoin rally after the conference, the Consensus did not materialize, continues to insist that by the end of the year the value of cryptocurrency will rise to $25 000. The forecast analyst with wall street underpins the three factors.

3 reasons supporting the growth of bitcoin:

  • The cost of production and circulation of bitcoin. When the first cryptocurrency gave about $8000, in an interview with CNBC Tom Lee said that in fact, bitcoin is trading at cost. He has previously said that production costs amount to about $6000.
  • Institutional investors. Many are willing to invest and are interested in digital assets, but can not enter the market due to the uncertainty of the regulation. Tom Lee added that the recognition of bitcoin as an asset class will become a powerful impetus for the resumption of the rally.
  • Historical analysis. The company’s specialists Fundstrat Global Advisors analyzed the history of the development of bitcoin. Interesting, but for all the first borne digital currency, the profit answer only 10 days a year. Tom Lee says that the main thing is not to miss these 10 days since the rally from $8,000 to $25,000 will be very fast.
  • The current situation on the market analyst and investor explains “typical cryptocurrency volatility” and is confident that bitcoin will beat your record from last year.

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    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.

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