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The path of least resistance is clear and as long as prices are trading below $ 4,700, we may see further drops to $ 3,000 or less. But even if analysts and investors track the price, Bitcoin's survival evokes memories of the dot com bubble. He broke out; starting from Amazon and Google, the companies that have so much control with the individual markets are more than tripled compared to those of the criptos.
Latest Bitcoin news
There has been much talk about the price, the collapse and the effect of low trading volumes. In fact there was some comparison on the current bear market and on the dot com bubble. Well, this is not the deeper correction that Bitcoin traders have had to sustain. In 2013-2014, losses were deeper and prices more volatile, mainly due to reduced trading volumes, as there were few investment channels and Bitcoin was not as common as it is now.
To read: CryptoOracle & # 39; s Kerner: Bitcoin is the "largest value store ever created"
Regardless of this, blockchain and Bitcoin are a solution that is here to stay. Just like Paul Krugman, a non-technical financial guru of previous years said that the Internet was a passing fad and has notoriously suggested that it would no longer be a transformation over fax, current affirmors like Jamie Dimon and Roubini or Dr Doom will surely look like technology form and interrupt current systems.
For the perspective Read: Dr. Doom claims that the digital currencies of the central bank could destroy cryptography
Although the dispute is different, there is a strong correlation between events around the dot com bubble and recent discussions on DLT, public blockchains and even competing protocols such as IOTA. The mass is divided and some bet on the interoperability of IBM HyperLedger, others on security and the Bitcoin community and much more on IOTA and the Internet of Things.
However, many are supporting open source solutions to prevail over authorized systems, just as TCP / IP has bred the current mega-corporations such as Google and Amazon. If this is the case, the stars shine for Bitcoin investors.
BTC / USD price analysis
Weekly chart
As before, the top down overview is quite clear: BTC / USD is in a merger and ready to lose more when trading volumes dry up and the so-called whales cover their positions to remain profitable. But, the thing is also when the anger of bear pressure and threatens to wipe out the super earnings of 2017, prices have remained stable in recent days.
Moving in a narrow range of $ 4,300- $ 4,700, it's an obvious support. If prices close above $ 4,500, then the odds are that prices can recover over $ 5,000 and $ 5,500 as previously expected. Conversely, large losses of less than $ 4,000 could open a flurry of sales orders that push BTC to $ 3,000 – $ 3,500 where analysts expect prices to find strong support.
Daily chart
The meaning of the $ 4,300- $ 4,500 support starts to appear on the daily chart. Here, we have a doji bar, a brand of market indecision, but trading volumes are still light.
Nevertheless, downward prices have limited the movements within a range of $ 200 of which we expect buyers to build their momentum.
Now, if today ends like a bull, closing over the immediate resistance of $ 4,700, then our previous BTC / USD price forecasts would most likely go live as buyers push prices above $ 5,000 to $ 5,500. Otherwise, BTC will capitulate below $ 4,000, so we will operate as above.
All graphics courtesy of Trading View
Disclaimer: The opinions and opinions expressed are those of the author and are not investment advice. Trading any form involves risks, as well as your due diligence before making a commercial decision.
