Press "Enter" to skip to content

Despite Slow Start, Analysts Believe 2018 Could be the Best Year for Bitcoin

NewsBTC

Cryptocurrency markets are not off to a good start in 2018. Most markets have lost nearly half of their value during the first few weeks. This most recent dip has pushed the momentum back as well. Even so, analysts are convinced this year will be very bullish for all cryptocurrency markets in the long run. Especially Bitcoin may see some big gains.

Bitcoin Scalability Improvements?

All cryptocurrency markets have seen major declines throughout the first seven weeks of 2018. Although Bitcoin showed some good momentum this week, most gains have been lost once again. Whether or not this is a bubble effectively bursting, remains to be determined. However, there are still a few solid reasons as to why things may turn out for the better. Julian Hosp remains bullish on cryptocurrency for quite some time to come.

Especially where Bitcoin is concerned, things can still improve quite a bit. With new scaling solutions coming to the ecosystem, a lot of progress will be made. Segregated Witness is now enabled by default through the Core client. It has also become more convenient to use altogether. If this adoption rate improves, the Lightning Network has a fair chance of succeeding as well. For now, there is no official release date for the Lightning Network as of yet.

With a lack of scaling, Bitcoin made a lot of headlines due to mounting fees. At one point, a Bitcoin transaction cost over $20. It is far from ideal, yet solving the problem is not all that easy. With SegWit and LN, those fees should eventually come down over time. Only time will tell if this works as people expect it to. Moreover, the addition of smart contracts to Bitcoin through Rootstock is something to look forward to.

Other Cryptocurrencies and ICOs

Cryptocurrency is about so much more than just Bitcoin, though. More regulation of this entire industry can be a good thing in many different ways. If an industry is regulated, it is “validated” in the eyes of the general public. For now, we see dozens of countries looking into regulating Bitcoin and other currencies. Not everyone is a big fan of regulation, as it imposes severe restrictions in some cases. For now, it seems further regulation will help legitimize cryptocurrencies and digital tokens moving forward.

Most people expected institutional investors to make a big impact on cryptocurrency. Through the Bitcoin futures, that should have happened some time ago. So far, the initial interest in such futures has been rather limited. Even though the volume is picking up, it remains to be seen if institutional investors effectively show a real interest in cryptocurrency. Depending on how this trend evolves, we may see some big progress in overall prices moving forward.

Last but not least, the elephant in the room is the ICO industry. To many people, it seems initial coin offerings are the downfall of cryptocurrency. With the SEC cracking down on illicit projects, things will improve moving forward. It all comes down to more legitimate coin offerings in the future, and which companies will embrace this model. Especially with Telegram turning their ICO into an IPO of sorts, it is evident the business model itself may see some big changes.

The post Despite Slow Start, Analysts Believe 2018 Could be the Best Year for Bitcoin appeared first on NewsBTC.

Bitcoin Price Technical Analysis for 02/23/2018 – Short-Term Reversal Signal

NewsBTC

Bitcoin Price Key Highlights

  • Bitcoin price recently formed a head and shoulders pattern on its 1-hour chart.
  • Price has broken below the neckline to show that a downtrend is underway.
  • The chart pattern spans more than $1,000 in height so the resulting selloff could be of the same size.

Bitcoin price broke below a short-term head and shoulders pattern to signal that more losses are in the cards.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA to show that the path of least resistance is to the upside or that the rally could continue. However, the gap between the moving averages has narrowed to show that bearish momentum could kick in.

Stochastic is hovering around oversold levels and could turn higher to show that buyers are ready to get back in. RSI is also in the oversold area, which means that sellers are exhausted.

In that case, a pullback to the broken neckline around $10,250 could happen before selling pressure gains more traction.

Market Factors

The US dollar gave up ground to most of its peers in recent trading sessions as risk appetite picked up. However, bitcoin price failed to benefit from this as profit-taking is being blamed for the recent drop.

Zooming out to the longer-term charts shows that price hit a long-term area of interest at $12,000, which prompted some liquidation orders. This marked the second straight day of declines for bitcoin as positive sentiment over the recent regulatory news appears to be fading.

With that, bitcoin price could need a fresh positive catalyst before resuming its rally. Otherwise, it could revisit the lows closer to the $6,500 level as more and more officials are expressing their doubts about the cryptocurrency.

Apart from that, the SEC charged former cryptocurrency exchange BitFunder and its founder Jon E. Montroll with fraud for running the operation as an “unregistered securities exchange” and allegedly defrauded clients.

The post Bitcoin Price Technical Analysis for 02/23/2018 – Short-Term Reversal Signal appeared first on NewsBTC.

Bitcoin Price Technical Analysis for 02/22/2018 – Potential Bounce Targets

NewsBTC

Bitcoin Price Key Highlights

  • Bitcoin price is still in correction mode but appears to be bouncing off the trend line support.
  • Applying the Fibonacci extension tool shows how high price could go if the trend line holds.
  • Technical indicators are signaling that the uptrend is about to resume.

Bitcoin price is finding support at the area of interest on the trend line, 200 SMA, and $10,000 mark so the rally might resume from here.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA on this time frame so the path of least resistance is to the upside. This means that the rally is more likely to resume than to reverse. Also, the 200 SMA lines up with the rising trend line connecting the latest lows.

Stochastic is pulling up from oversold levels to signal that bullish pressure is returning. Similarly, RSI is also turning higher to show that buyers are ready to jump back in.

A bit of bullish divergence can be seen on stochastic as the oscillator formed higher lows while price had lower lows. A bounce could take bitcoin price up to the 38.2% extension around $11,000 or the 50% extension at the swing highs.

The 61.8% extension is located at $12,000 or another long-term area of interest. The 76.4% extension is at $12,788 then the full extension is at $13,590.

Market Factors

The US dollar enjoyed another wave higher on hawkish FOMC minutes and risk aversion. Policymakers agreed that stronger growth momentum could warrant further tightening in the months ahead.

This led to higher bond yields and another weak close for US equities as business and consumer activity could be dampened by higher interest rates. Note that bitcoin price has been trading alongside stocks and commodities, so the dip also affected the cryptocurrency.

Nonetheless, it’s still worth noting that bitcoin sentiment has improved after a few nations have expressed the need to keep the door open for industry developments. Then again, some top financial officials have made negative remarks on bitcoin, particularly on its ability to be a store of value.

The post Bitcoin Price Technical Analysis for 02/22/2018 – Potential Bounce Targets appeared first on NewsBTC.

Bitcoin Price Technical Analysis for 02/21/2018 – Waiting for More Buyers

NewsBTC

Bitcoin Price Key Highlights

  • Bitcoin price sold off from its rising wedge support previously highlighted, signaling that a downtrend may be in order.
  • However, price is still testing support at the rising trend line connecting the lows since the start of the month.
  • Technical indicators are also suggesting that bullish momentum could return.

Bitcoin price is pulling back from its uptrend and is testing support at an area of interest where buy orders might be located.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. Also, the 100 SMA lines up with the trend line to add to its strength as a floor.

A break below the trend line could still find a floor at the 200 SMA dynamic inflection point, which is still within the area of interest or former resistance zone around $10,000.

Stochastic is on its way down to show that sellers are on top of the game but the oscillator is dipping into oversold territory. Similarly RSI is in the oversold region to signal that sellers are starting to get exhausted. Turning back up could draw bullish pressure back in and allow bitcoin price to bounce.

Market Factors

The US dollar extended its gains to its counterparts even as US traders returned from the holiday. Risk aversion was in play as equities and commodities closed in the red, which was also bearish for bitcoin price.

Higher US bond yields are being pinpointed as the main factor spurring dollar gains across the board. Today the FOMC minutes are up for release and hawkish remarks could spur tightening expectations, which might even be more bullish for the dollar.

Meanwhile, there are a few more naysayers on bitcoin lately, including BOE head Carney who noted that bitcoin has failed as a store of value. On the other hand, there are a few positive reports, such as the one from India where SBI Cards & Payments Services Pvt. Ltd decided not to ban purchasing bitcoin and other cryptocurrencies with credit cards.

The post Bitcoin Price Technical Analysis for 02/21/2018 – Waiting for More Buyers appeared first on NewsBTC.

Bitcoin Price Technical Analysis for 02/20/2018 – Watch Out for this Ceiling!

NewsBTC

Bitcoin Price Key Highlights

  • Bitcoin price is still rallying and has broken one resistance level after another.
  • Zooming out to the daily time frame reveals that price is closing in on a major area of interest.
  • Applying the Fibonacci retracement tool on the daily swing high and low shows that this potential ceiling lines up with the 61.8% level as well.

Bitcoin price could pause from its climb once it tests the next area of interest visible on the daily chart.

Technical Indicators Signals 

The 100 SMA is above the longer-term 200 SMA on this long-term time frame, so the path of least resistance is to the upside. This suggests that the rally is more likely to continue than to reverse.

However, the 100 SMA dynamic inflection point lines up with the area of interest to add to its strength as a potential barrier. Then again, the gap between the moving averages is widening to reflect stronger bullish momentum.

Stochastic is indicating overbought conditions on this time frame, though, so selling pressure could return soon. In addition, a bit of bearish divergence can be seen as price made lower highs while stochastic had higher highs.

RSI has some room to climb before hitting overbought levels, which means that buyers can stay in the game for a bit longer, possibly even leading to a move past the area of interest.

Market Factors

Sentiment has significantly improved in the cryptocurrency industry, allowing bitcoin price to sustain its recent rallies. This is seen to have stemmed from the US Senate hearing encouraging developments in the industry, followed by positive remarks from South Korean officials over the previous weekend.

Other nations are expected to take a similar stance on bitcoin, although it’s also worth noting that BOE Governor Carney recently commented that it has failed as a store of value.

Dollar price action could pick up and lead to more volatility for BTCUSD as the Fed gears up to release the minutes of its latest policy meeting. Keep in mind that global tightening expectations have been influencing market sentiment and bitcoin price has drawn support from risk-taking.

The post Bitcoin Price Technical Analysis for 02/20/2018 – Watch Out for this Ceiling! appeared first on NewsBTC.