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:
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.
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.