$ 1700? Why even the most pessimistic bitcoin case is optimistic

$ 1700? Why even the most pessimistic bitcoin case is optimistic

Taking into account our well-documented beliefs and the automatic reaction of the skeptics, we have come to realize that we have entered a big project.

Bitcoin price shares – After having had a cataclysmic drop from $ 1250 to $ 175 in November 2013, the bitcoin stabilized in January 2015 around an average 200-week movement and stayed in that area for nine months , as the green line looks like on the chart below.

At the time, the debt crisis in Europe was echoing. Greece threatened to leave the European Union, giving Bitcoin growth in the middle of the summer. The bitcoin price shares in those nine months suggested that the ecosystem is more robust than the professionals who manage traditional assets recognize.

In any case, technicians were with their antennas open. So the average movements, the resistance and the support, and the distance between them, were relevant.

Despite the drop in the bitcoin price from nearly $ 20,000 in December 2017 to less than $ 10,000 on February 6, 2018, we are convinced that bitcoin is the first in a new class of assets, the cryptoactives. We think the Bitcoin is not going anywhere.

Over the past three years, cryptoactives have grown to more than 500 billion in volume. Bitcoin dominates one third of the entire ecosystem consisting of more than 1500 cryptocurrency, cryptocomponents and crypto-jets. He was born out of a meeting of technology, financial services, economy and other social sciences. This new class presents a new challenge to professionals in every field, not to mention the investing public.

The fire test

The Bitcoin has gone through several fire tests in recent years, as do price fluctuations. After the chart we have a list of the most important tests, which are the investors’ “Evrika” moments.

The Bitfinex attack in August 2016 led to a steep decline. He took the price below $ 500 on the day of the attack, then came back strong. The rapid change seems to illustrate that early investors have understood the difference between software bugs of an application built over bitcoin and the protocol itself. In other words, the market became more sophisticated, attracting confidence.

The People’s Bank of China stared at the miners in January 2017. It caused further annoyances, dragging the price down to $ 789. At the end of 2016, China had 95% – sometimes even 99% – of daily volumes. The mainstream media commented on the dependence of the bitcoin on China. After the Chinese People’s Bank banned (for the second time) the price dropped but quickly recovered. This time, rapid price recovery illustrates that bitcoin has become “anti-fragile” in the actions of authorities in any country. Japan and Korea quickly picked up volumes.

The SEC agency denied Winklevoss brothers the proposal to create a Bitcoin Trust on March 10, 2017. The weekend the price dropped to $ 935 before a month’s recovery that put him on an interesting road to 20,000 dollars in the next nine months . Many observatories said that the refusal of the SEC is a negative turn. Not only the bitcoin price has returned, but the whole ecosystem has wielded a bull market even stronger than bitcoin. Ether for example rose from $ 15 to $ 400. The price increase illustrates that bitcoin and other assets are not dependent on traditional markets.

In spite of thousands of detentions related to scalability, bifurcation, merchant adoption, and high commissions in the second half of 2017, the bitcoin price rose nearly 20 times to $ 19500 in December 2018. Price shares suggested that too much capital was looking at too few opportunities.

The enthusiasm died in January 2018, under the weight of Bitfinex and tether problems, among other pressures.

And now what?

If global technicians and traders will dominate trading as they did in 2015, then the bitcoin price could test more technical levels, between $ 8350 and $ 1650 … and still be on the bull market.

Market observers have learned about the methods by which large traders influence stock market shares in important market segments.

Among the levels of technical support described in the graphs below and rounded to hundreds, here are the most important.

6400 dollars – 200 days average movement – a major support area according to traders

$ 4600 – the most significant since September 2017

$ 1,700 – the 200-week average move, the area where bitcoin had reached its minimum in 2015, and which we saw last May.

acțiunile de preț bitcoin

If the bitcoin drives the new class of assets, then these price points are just psychological support areas and will fade compared to the final destination. Analysts believe the price will find its minimum when buyers return to the market and start to overwhelm sellers.

Trust is reinforced by the large number of developers and code-lines with which they contribute to the community. Not to mention the much-anticipated Lightning Network, which is growing fast.

As long as they deal with bitcoin, we do not go either.

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