Bitcoin Price: Is Hype or Substance Now Driving the Trend?

· April 16, 2018 · 7:00 pm

How do rumors of institutional funding and the return of mainstream media cryptocurrency hype influence Bitcoin value projections?


At final! The days we’ve all been ready for are again, or so it seems for the second. The mainstream media hype and euphoria surrounding cryptocurrency have returned and voila, BTC is up practically 23% in the final 7 days!

Of course, there are extra elementary occurrences occurring behind the smokescreen of CNBC hype males shilling cash to thousands and thousands of viewers however the indisputable fact that speaking heads are excitedly discussing stratospheric future value projections after the carnage most traders endured throughout the final three months is reassuring.

What’s actually occurring:

  • Last week the Securities and Exchange Commission (SEC) started to rethink functions for BTC exchange-traded funds (ETFs).
  • Rockefeller’s enterprise capitalist division ‘Venrock’ partnered with Coinfund.
  • George Soros indicated that Soros Fund Management accredited plans to commerce cryptocurrencies and related whispers are being heard from Rothschild.
  • Stratospheric value tasks have returned and to date every one is supported by CNBC’s Brian Kelly. Tim Draper forecasting BTC at $250,000 by 2022, Thomas Lee says $25,000 by the finish of 2018 and Dan Morehead of Pantera Capital tasks $20,000 by years finish.

Why is that this necessary? Well, it may very well be the success of the institutional prophecy. Yes, you realize the one the place massive monetary establishments, hedge funds, and brokerages would inject practically a trillion {dollars} into crypto markets, bringing market capitalization from a December 2017 excessive of $830 billion to 2 or three trillion all through 2018.

While all of that’s thrilling, dependent upon your philosophy relating to decentralization and institutional whales shopping for up crypto, there may be extra…

  • Tax day is almost handed and promoting to cowl capital positive aspects seems to have ended.
  • BTC transaction charges are approach down and the lightning community is guaranteeing that transactions are fast and low cost.
  • At its lowest, Bitcoin was down 65% from its December 2017 excessive and with $6,300 – $6,500 is claimed as the backside a turnaround was imminent.

Now that BTC has crossed $7,500 the most urgent query on the minds of traders are in all probability: Are we actually out of the woods but and is that this the starting of a long-term reversal? Let’s take a look a the charts to see.

four HR Chart

BTC has lastly damaged out of the descending channel indicating $6,300-6,500 as a backside.

Since turning upwards and crossing at $6,873, the 20-day EMA and 50-day MA continued to climb whereas additionally placing distance between one another which exhibits the presences of bullish stress however at the time of writing the 20 EMA and 50 MA have crossed downwards once more.  It must be famous that the 100-day-MA and 200 day-MA are nonetheless trending downward with the 100-day MA virtually crossing the 200-day MA at the time of writing.

Bitcoin 4-Hour Chart

Currently, the 50-day MA stands as the most speedy resistance of $8,500 and above the 50-day MA, the subsequent level of resistance is 9,200 adopted by $10,000.

Daily Chart

Bitcoin Daily Chart

At the time of writing the each the RSI and Stoch are descending indicating overbought circumstances which had been to be anticipated as revenue taking from $8,300 – 8,500 appears smart.

RSI and Stoch descending
Meanwhile, the MACD nonetheless reveals potential bullishness and it’s possible that BTC will settle into a short lived vary of $7,800 to $8,300 earlier than breaking upwards in the direction of $10,000 after it clears the $8,500 resistance stage. While the brief and long-term imaginative and prescient of BTC has turned constructive it is very important do not forget that lots of BTC’s earlier help ranges will now operate as resistance cabinets making the climb again to $10,000 and above a prolonged course of that will likely be punctuated by profit-taking, regulatory scares, the turning tides of mainstream information and the subject of an uncountable variety of traders who’re nonetheless locked into their  2017 all-time excessive purchases.


  • For the subsequent day or two, revenue taking will possible happen between $8,300 – $8,500 with shopping for urge for food showing close to $7,800.
  • BTC must overtake the 50-day MA ($8,500) which ought to up the door for an upward break in the direction of $10,000.
  • There continues to be main resistance at $12,200 and it might take a while for BTC to succeed in this level.
  • In the long run, the return of constructive curiosity and media protection of BTC and can entice extra patrons.
  • BTC seems to be reversing off its backside and is at the moment buying and selling above the descending channel.

Disclaimer: The views expressed on this article are usually not supposed as funding recommendation. Market knowledge is offered by BITFINEX. The charts for evaluation are offered by TradingView.

How do you assume the current help of mainstream media and plans for funding by institutional traders will influence Bitcoin value? Let us know in the feedback beneath!

Image courtesy of Wikimedia Commons,

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