You would have to be deaf, and blind not to notice the commentary on Bitcoin at the minute. With the parabolic rise of this cryptocurrency come a plethora of thoughts. Some believe BTC $50 - $100k next while others submit it may fall to $3k. As many a trader will tell you, always look to the higher timeframe to deliver an indication as to what the price of a cryptocurrency, stock, or instrument might be. I studied recent Bitcoin charts this way, and here is what I discovered. I trade BTC on daily charts and not hourly. Because of this, I look at the weekly charts for guidance. Sometimes I look to the monthly charts for more guidance.
The weekly charts show you that there may be some momentum left in Bitcoin. Appearing at the chart below, you will understand that the momentum indicator has proven strength in the trend for the last eight weeks. The indicator shows no sign of momentum dropping any time shortly. In other words, the momentum is very bullish. This (momentum) may dissipate in about three weeks, and bring about a retracement. You may have also noted that there is some resistance at the $8300 mark. I think that if Bitcoin breaks this resistance, $9000 is certainly on the cards before any future drop in price. Like so many of you, I would love owning a crystal ball telling me the future price of Bitcoin, unfortunately, this is not the case. And since it is not the case, your guess is as good as mine.
BTC Weekly Charts with Momentum and CCI Indicators Courtesy Investing.com
Ahoy ladies and gentlemen. Our Flipboard magazine keeps getting updated as you can expect. Here are just some of the stories you can read:
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How to Build a Better Cryptocurrency Than Bitcoin and Ethereum
Could Growing Investments in Crypto Funds Signal Improving Fundamental Strength?
ALTCOINS - "Privacy coin" Monero offers near total anonymity
JPMorgan Tries Fear-Mongering in Attempt to Sabotage Rowdy Bitcoin Price Rally
Meet the Man Who Spent $800 Million USD in Bitcoin on Two Pizzas
Looking for a Bitcoin alternative? Check out these three altcoins
Tether, a crypto token once valued for its stability, is looking increasingly risky
A more enjoyable option would be for you to read the magazine on your iPad using the Flipboard app. If you do not have the Flipboard app, download in the app store, install, and enter the "Blockchainology". This magazine is curated by Olusegun Oyekanmi
I am a regular competitor on the Cindicator platform. One of the questions asked was what we thought the maximum and minimum Bitcoin prices might be by the end of the day. This type of question was asked fairly regularly so I made my predictions. Bitcoin it turns out made such a price jump that I ended up losing a large number of points for getting it wrong. Many pundits/analysts got it wrong. They like many did not see the coming parabolic move.
Next, there was the talk of Bitcoin going as high as $25k. Some even posited $250k! Between 26 April and 15 May, we saw the massive price rise driven by FOMO (fear of missing out). BTC price went as high as $8323. The enthusiasts among us must have thought prices were headed back to $20k! Alas, this doesn’t seem to be the case. As I write there has been a retracement to 61.8%.
Volatility and uncertainty are characteristics associated with Bitcoin. They are not going anywhere. It looks like Bitcoin’s price is going to infinity but not beyond. Who knows what’s next, but then again, your guess is as good as mine.
At about 7 pm CAT (Central African Time) yesterday, I noticed that the BTC price on Bitfnex was more on par with other exchanges. I had to do a double take. I thought there must be some mistake. One had to wonder, is it the price premium outcry or something else that has made this happen. I could think of no reason. Some of you may recall that my last blog piece was precisely about the Bitfinex BTC price premium. Historically, there has always been a more visible difference when it comes to Bitfinex and other exchanges.
I began to reconsider my earlier thoughts. What really has brought about the shrinking Bitfinex BTC premium? I thought of a few reasons that may have brought this about. Earlier in the week, Bitfinex made an announcement on receiving both hard and soft commitments of a $1 Billion towards its’ exchange token. This was according to one of the shareholders involved in the process. Could this be one of the reasons? Let us not forget the outcry by many in the crypto community. Might this have been another reason?
We must also think about Bitcoin volatility. Recent prices surges will as they do even up the costs across the different the crypto exchanges because of an increase in demand right across the board. Might there be something else we are not considering or is there just a simpler explanation? Maybe there is an easier explanation but then again your guess is as good as mine.
Recent reports indicate that something fishy may be going on in the cryptocurrency markets. The point in case is Bitfinex. It is believed that Bitfinex is skewing the price of Bitcoin. This has concerned the likes of CoinMarketCap to the point that it has stopped listing Bitfinex prices. I had initially thought this impossible, but on investigation, it turned out to be so. Taking a quick glance at the Bitcoin price, you will immediately see the disparity. What this means is that the Bitcoin price on Coinbase, Bitstamp. Bittrex, Gemini, and OKCoin are pretty similar. For those who love arbitrage, there are no opportunities to take advantage of. The weighted average price is $5821.43 (at the time of writing) while the price on Bitfinex is $6121.6. This is a difference of $300.17! Such a difference should be cause for concern.
New York State Attorney has also announced an investigation into the conduct of Bitfinex, Tether, and iFinex for what appears to be a series of bank transfer cover up of losses totaling $850 million. Many an analyst believes that this might bring on a new bearish sentiment in the market. That concern seems to have dissipated considering the current bullish sentiment in the price of Bitcoin.
While the disparity of Bitfinex to other exchanges has brought on some concern, a counter argument could be brought forward concerning the exchanges Coinfloor and itBit. Their Bitcoin prices are $4376, and $3547.7 as at the time of writing. This is a difference of $1445.43, and $2273.73 respectively, when deducted from the weighted average. So, what is the real price of Bitcoin? Do we really know? I suppose not, but as I have always said, your guess is as good as mine.
It has been a while I have said anything about Bitcoin. I am sure some of you now know that Bitcoin on Bitfinex has gone over the $6000 mark! As you can see from the chart, the upward trend looks very strong. This trend is also backed up by volume. The Vortex Indicator also shows sign of increased strength to the upside for Bitcoin. I suppose we all knew that Bitcoin would hit the $6k someday or the other, which should come as no surprise. Surprisingly as I write, Bitcoin on Coinbase, Bitstamp, Bittrex, and Gemini have all fallen below the $5700 mark. Perhaps one should not be surprised considering that Bitcoin has had 30-day volatility of 18%.
Next price target for Bitcoin $6608. We only consider this price based on the increased strength of the uptrend. We must remember it took Bitcoin quite a while to break the $5700 - $5735 price mark. We are most likely to see something similar before its price rise to $6608. When considering the FOMO (Fear of Missing Out), greed, and of course the volatility, one can never be sure as to what is going to happen next. But then again, your guess is as good as mine.
Do you think Bitcoin will rise to $6608 next? What do you think? Let us know in the comments section.
As you can expect, here is just a small sample of the stories you may have missed:
Crypto-Specialist Economist Reveals Trick for Governments to ‘Kill Bitcoin’
Bitcoin ‘anonymization’ is up 300% this year
Kraken delists Bitcoin SV
Samsung and IBM going all-in to Ethereum and Stellar?
Tether “fraud” is just the tip of the iceberg, says crypto intelligence firm CipherTrace
Institutional Love For Crypto Confirms Bitcoin Isn’t a Bubble
Secrets Inside Crypto ETPs and ETFs - What's Hiding Behind The Risk
Crypto world keeps faith in Tether, even with news of fraud investigation
Here's What The Bitcoin Community Should Do About The Fake Satoshi Nakamoto
A more enjoyable option would be for you to read the magazine on your iPad using the Flipboard app. If you do not have the Flipboard app, download in the app store, install, and enter the "Blockchainology". This magazine is curated by Olusegun Oyekanmi.
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