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Bitcoin (BTC) Price Weekly Forecast: Bulls Preparing For Larger Rally

  • There is a strong resistance forming for bitcoin near the 8,200-8,300 area against the US Dollar.
  • The price is placed nicely above the $7,840 and $7,600 support levels.
  • There is a crucial contracting triangle forming with resistance near $8,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to break higher and surge once it clears the key $8,300 resistance area.

Bitcoin price is holding gains above $7,800 and $8,000 against the US Dollar. BTC seems to be setting up for a monster bullish break above $8,300 in the near term.

Bitcoin Price Weekly Analysis (BTC)

This past week, bitcoin price corrected lower below $7,660 against the US Dollar. The BTC/USD pair even broke the $7,600 support level and traded as low as $7,474. However, dips remain protected and the price recently bounced back above $7,600 and $7,800. There was a strong upward move above the $8,000 level and the price remained well above the 100 simple moving average (4-hours). The price tested the $8,200 resistance level and it is currently correcting gains.

An immediate support is near the $7,950 level. The main support is near the $7,840 level, and the 23.6% Fib retracement level of the recent wave from the $7,474 low to $8,200 high. More importantly, it seems like there is a crucial contracting triangle forming with resistance near $8,200 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the triangle support at $7,840, the price could test the $7,600 support. The 100 simple moving average (4-hours) is also near the $7,600 level.

If there is a daily close below the $7,600 and $7,500 levels, the price may perhaps start a strong downward move. Conversely, if there is an upside break above the $8,200 resistance, the price could start a strong rally. The next immediate resistance is at $8,300, above which the next target might be $8,500 or $8,800.

Bitcoin Price Weekly Analysis (BTC)

Looking at the chart, bitcoin price is clearly forming a crucial breakout pattern with resistance near $8,200. A successful close above the $8,200 and $8,300 resistances is likely to start a strong upward move. If the bulls continue to struggle near $8,200 or $8,300, there might be a fresh decline. On the downside, the $7,500 support area holds the key. A successful close below $7,500 is likely to push the bulls on the back foot.

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to move into the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the level 50 and it could move higher.

Major Support Level – $7,500

Major Resistance Level – $8,300

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Bitcoin Outperforming the Stock Market By a Whopping 10 Times in 2019

Getting towards the end of the first half of 2019 and Bitcoin has outpaced the stock market by almost 10 times.


2019 Scorecard: Bitcoin 111%; Stock Market 12%

Tweeting on Friday, Morgan Creek Digital CEO Anthony Pompliano noted that Bitcoin price 00 is up by about 111 percent in 2019. Meanwhile, by comparison, stocks have risen only 12 percent within the same period.

Between April and May alone, BTC has added $2,000 to its market price. Such is the extent of Bitcoin’s 2019 run that as eToro’s Mati Greenspan puts it:

At this point, a $200 move in the price of Bitcoin could easily lead to a move of $2,000.

Speaking recently to CNBC, billionaire venture capitalist Tim Draper pointed out the emergence of investor fatigue for some of the companies like Uber that have newly gone public.

According to Draper, established brands going public aren’t going to experience massive price growths. Instead, Draper expects stock value increases between 10 and 20 percent.

Bitcoin bulls, however, don’t envisage any price fatigue for the top-ranked cryptocurrency by market capitalization. BTC has so far remained in close proximity to the $8,000 mark in May despite a few downward retracements.

BTC is a Great Diversifier

In an interview with CNBC on Wednesday (May 22, 2019), Mark Yusko, the Managing Director of Morgan Creek Capital Management described BTC as a great investment portfolio diversifier.

As previously reported by Bitcoinist on several occasions many commentators have said that BTC ought to constitute at least one percent of every investment portfolio.

Yusko also espoused sentiments similar to Pompliano’s saying Bitcoin is a better investment bet than stocks. Back in early 2019, Yusko highlighted Bitcoin’s potential, calling it the greatest wealth opportunity of our time.

Stock Market Decline Imminent

Bitcoin’s stock as a great investment portfolio diversifier might come into even more significant prominence on the back of an imminent market decline.

According to Yusko, the Federal Reserve saying they are closer to slashing interest rates indicates the emergence of economic weakness.

Central banks across the world from Japan to Australia and even the European Central Bank (ECB) are also reportedly on course to adopt similar dovish monetary policies.

The historical precedence shows that rate cuts tend to lead to market weakness as seen in 2001 or even full-blown meltdowns like in 2008.

For people like Travis Kling of Ikigai Asset Management and Max Keiser, BTC represents a hedge against the fallback from such “irresponsible” central bank policies.

By how much do you predict that Bitcoin will outperform the stock market at the end of 2019? Let us know in the comments below.


Images via Shutterstock, Twitter @APompliano, @CNBCFastMoney

The Rundown

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Mike Novogratz: Facebook’s GlobalCoin Won’t Rival Bitcoin

Coinspeaker
Mike Novogratz: Facebook’s GlobalCoin Won’t Rival Bitcoin

Major Bitcoin bull and former Wall Street exec Mike Novogratz recently discussed the current state of the cryptocurrency industry. The Galaxy Digital CEO explained why he thinks the crypto winter is finally over and why ‘Facebook Coin’ won’t rival Bitcoin.

During his interview, Novogratz reminded that everyone had their own version of Bitcoin and the supply exponentially grew. Bitcoin, he thinks, had really established itself as a store value. He said:

“This is hard to do because there is just one more stored value of this kind. It’s gold. It is hard to be worth something just because it’s worth something. Almost everything else is different. For example, Uber shares are worth something because people are using it. What Bitcoin has done is a unique thing.”

He also referred to Bitcoin’s intrinsic value saying:

“You can take all the gold in history that has been mined and put it in three Olympic swimming pools and it’s worth $8,5 trillions. Why? Because it sits in the vaults.”

Novogratz went to mention that retailers are buying Bitcoin but also the institutions are moving in. There are Yale, Harvard and Stanford endowments.

Microsoft Wanting to Link with Bitcoin Blockchain is a Big Thing

The CEO claims the original Bitcoin boom witnessed around 2016-2017 was influenced by the retail-driven investments by around 98%. This means more companies were buying cryptocurrency at a time when it looked like the future of finance. The recent developments in the crypto world are also affected by ‘credentialing’ according to the CEO especially with the recent move by Microsoft in the industry.

“Also, there is Microsoft, one of the biggest companies in the world that says they want to do identify solution by linking it to the Bitcoin blockchain. Now this is big.”

Microsoft recently announced their initiation of an identity solution to add to the Bitcoin blockchain. As more investments crowd Bitcoin, its value soars higher as witnessed in the recent spike. Microsoft is not the only big organization enabling the ‘credentialization’ of Bitcoin. Not long ago, Facebook lifted all the bans it had imposed on cryptocurrency and any blockchain-related advertisements.

He also mentioned Facebook coin saying that it is really important for the ecosystem.

“Crypto is going to be part of Facebook’s future. However, this coin will be listed to some stable currency and will be used for payyments. Bitcoin on the other hand is not going to be the payment currency – it will be stored vault, just like gold. If you really think bitcoin is gonna win this store of value, everything else needs to be used for something.”

GlobalCoin Isn’t a Threat to Bitcoin

As we’ve already wrote, Facebook’s GlobalCoin will probably be established as a stablecoin, pegged to the dollar or local currencies in the countries that will be allowed to use it. It is also likely to run on a private, centralized blockchain, owned and controlled by the company. Based on this fact, it can not be perceived as a direct competition to Bitcoin or other peer to peer decentralized digital currencies.

Other coins that piqued Novogratz’s interest include Ethereum and EOS. These projects have to encourage developers to build on top of their platforms. Just few days ago he was comparing various cryptocurrencies with chemical elements in the periodic table. He then considered the role of altcoins, hinting that each coin will have “to prove themselves out” in order to provide a certain use case.

On this note, Novogratz argued out that “there’s no one building anything on the Litecoin blockchain,” as opposed to the Ethereum blockchain.

Recently, Novogratz made yet another Bitcoin prediction, claiming that the major cryptocurrency will beat its all-time-high record of $20,000 within the next 18 months.

Mike Novogratz: Facebook’s GlobalCoin Won’t Rival Bitcoin

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ICO, Blockchain and Cryptocurrencies: Impact on Different Spheres

Coinspeaker
ICO, Blockchain and Cryptocurrencies: Impact on Different Spheres

In 2019, it’s difficult to find a person that hasn’t heard about blockchain or, at least, about Bitcoin. Decentralized systems are slowly reshaping our daily life. Even such financial institutions as pension funds start investing in cryptocurrency, while more and more businesses implement blockchain technology to streamline operations. Not to mention thousands of startups that launch their own tokens and get financial support from interested sponsors via ICO rounds.

But what exactly is happening? How can blockchain, crypto, and ICO reshape our good old world of slow bank transactions and ubiquitous governmental control? We will try to answer these questions by exploring the leading industries affected by blockchain today.

Key Definitions: Blockchain, Crypto, ICO

Without a basic knowledge of the concepts, it will be difficult to understand how disruptive these innovations are. Thus, check the following definitions:

  • Blockchain is a decentralized network that is run by multiple computers instead of a single server. It stores and processes data blocks that form a global chain. Information is protected by cryptography, can’t be modified or corrupted. That’s why blockchain enjoys near-perfect security and transparency, while being independent of existing regulators or governments.
  • Cryptocurrency is digital money that powers blockchain. Probably, you’ve heard about Bitcoin or Ethereum – the two largest crypto coins by market cap. As the name implies, cryptocurrencies are protected by cryptography, similarly to other data stored within blockchain. Operations with cryptocurrency can’t be traced by financial organizations, have high speed, and relatively low fees unlike fiat payments.
  • ICO (Initial Coin Offering) is a form of funding, wherein any company can release its native crypto tokens and sell them to investors. Further, the investors can utilize tokens within the parent ecosystem or trade at exchanges. ICOs were extremely popular in 2017-2018, but a lot of fraudulent and scam projects shattered the investors’ confidence in the concept.

Industries Affected by Blockchain/Crypto Boom

As the three mentioned concepts are strongly interrelated, it’s worth reviewing their combined impact on different spheres. The thing is that the combination of three elements can be used in almost any industry. Let’s take a look at the most interesting examples.

Advertising

Ad platforms based on blockchain get rid of third parties and connect consumers with producers directly. As a result, people receive fewer ads and enjoy better personalization. Furthermore, companies that promote their products/services get higher conversion rates thanks to perfect targeting.

Examples: Basic Attention Token is the most famous example of decentralized advertising service, while there are also several sites that pay users in crypto for watching ads.

Education

For schools and universities, blockchain has several valuable benefits. Firstly, it allows switching to a digital ecosystem that removes the need for paperwork. Moreover, the inability to falsify records is wonderful for verifying degrees and credits. Finally, it should be easier and faster to pay fees in crypto as well as keep educational data in immutable blockchain storages.

Examples: The University of Nicosia issues blockchain-based certificates, accepts fees in BTC, and hosts crypto-related courses. MIT has also launched Blockcerts – the open platform for registering and verifying certificates via blockchain.

Finance

Obviously, financial services are the ideal sphere for decentralized projects. Bitcoin, the first blockchain-based initiative, is focused on simple and cheap cross-border payments. A lot of other cryptocurrencies also aim at more efficient transactions. Among the benefits, there are full transparency, high security, reduced costs, and anonymity.

Examples: Bitcoin still leads the race for decentralized payment systems despite its high price. While other currencies such as XRP and XLM try to develop faster, cheaper, and more scalable systems, either in partnership with banks or independently.

Government

Thanks to the immutability of records, voting systems based on blockchain are trustless and secure as nobody can duplicate or falsify votes. Furthermore, the public sector can benefit from decentralized digital identification and transparent databases for keeping public records.

Examples: Switzerland was the first country to hold successful blockchain-based municipal voting. Estonia also implements various decentralized initiatives in the public sector. Dubai tries to build the first smart city and uses blockchain for this, too.

Healthcare

Medical records contain a lot of sensitive information so hackers realize the benefits they can get from stealing them. Thanks to blockchain, doctors and patients can access protected storages that keep patients’ e-records safe. Payments and insurance compensations become simpler and faster with crypto, as well.

Examples: startups like MedRec and Tierion offer decentralized encrypted storages for medical records. National institutions such as Taipei Medical University Hospital deliver health data to physicians and their patients.

Insurance

Likewise, insurance companies deal with personal data of clients and ensure that their money is safe. That’s why tamper-proof and transparent systems are necessary for underwriters. For example, they can use smart contracts to automate interaction between insurance providers and policyholders. Plus, blockchain platforms remove the need for middlemen.

Examples: IBM partner SURETY.AI focuses on micro insurance for the unbanked. Another example is RYSKEX whih works in the B2B market and uses smart contracts to automate claim payments.VouchForMe creates a peer-to-peer insurance market where individuals can interact with guarantors directly.

Real Estate

This business involves numerous intermediaries which results in lengthy deal closing. Decentralized platforms can save tons of money and time for all parties. With perfect transparency, reduced human error, verified sellers/buyers, and digital interactions, real estate services can become more affordable and automated.

Example: Sweden tests blockchain tech to simplify property-related operations. Other famous initiatives include Ubitquity that is based on the SaaS decentralized platform and designed for real-estate companies.

Supply Chain

The supply chain services are transformed by decentralized systems greatly. For instance, there are blockchain-based tools used for verifying the identity of goods, fleet tracking, and analyzing customers’ behavior. These initiatives help to get rid of data redundancy and red tape as it becomes possible to track everything automatically within blockchain.

Example: Provenance aims at transparent real-time tracking with exact details on each product visible for consumers. WAVE simplifies document checking and ensures that supply chain participants are reliable and legit.

Experts’ Predictions for 2019

In conclusion, let’s review the opinions of industry professionals related to blockchain and cryptocurrencies.

Generally, most experts are positive about the future of cryptocurrencies.Tim Draper, a venture capitalist, thinks that Bitcoin will hit $250,000 by 2022, while Ella Zhang from Binance Labs focuses on practical adoption and expects many new intriguing crypto projects to emerge. The founder of Theta Labs, Mitch Liu, even states that we will see the world’s first national crypto backed by fiat soon.

When it comes to blockchain, experts think that it’s time for real business.Justin Sun from TRON believes that there will be many new businesses utilizing different blockchain models. Maltese Minister Silvio Schembri announces that the licenses will be issued to companies implementing blockchain tech in the public sector. Finally, Fabian Vogelsteller, a co-author of the ERC-20 standard, thinks that ICO will still be a great funding mechanism but it has to regain the trust of users.

As for now, however, nobody can predict how exactly blockchain and crypto will be used in a year or two, but there are a lot of brand new projects popping up in various industries. The one thing is true: if you are keen on innovations, consider implementing blockchain-based features in your business right now!

ICO, Blockchain and Cryptocurrencies: Impact on Different Spheres

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Bitcoin (BTC) Price Smashes Resistance: Bulls Target Fresh High

  • Bitcoin price started a strong rise above the $7,800 and $8,000 resistances against the US Dollar.
  • The price gained traction and even traded close to the $8,200 resistance area.
  • This week’s followed important declining channel was breached near $7,960 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is currently forming a triangle pattern and it could continue higher above $8,150 and $8,200.

Bitcoin price jumped back into a positive zone above $7,800 against the US Dollar. BTC is currently forming a bullish pattern and it may continue to rise towards $8,300 an 8,500 in the near term.

Bitcoin Price Analysis

Recently, we saw a strong bounce in bitcoin price from the $7,475 swing low against the US Dollar. The BTC/USD pair surged higher and broke many hurdles near $7,700 and $7,800. There was even a break above the $8,000 level and the 100 hourly simple moving average. It seems like the bulls are back in action and the price completed a downside correction near the $7,500 support area. This also suggests that there are chances of more gains above the $8,200 level.

Recently, this week’s followed important declining channel was breached near $7,960 on the hourly chart of the BTC/USD pair. The pair spiked towards the $8,200 level and formed an intraday high at $8,180. The price is currently consolidating gains above $8,000. Moreover, it traded below the $8,100 level and the 23.6% Fib retracement level of the upward move from the $7,475 low to $8,180 high. However, the broken resistance near the $7,960 and $8,000 levels is currently acting as a strong support.

Besides, the pair is currently forming a triangle pattern with resistance near $8,050 on the same chart. Therefore, if the pair clears the triangle resistance and surges above $8,100, there could be solid gains in the coming sessions. The next key resistances area near the $8,200 and $8,300 levels. Above these, the price is likely to trade to a new 2019 high.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly jumped back into a positive zone above $7,800. It is currently consolidating gains above the $8,000 level and the 100 hourly SMA. If there is a downside break below the 100 hourly SMA, the price could correct lower towards the $7,710 level. Below $7,710, the next key support is close to the $7,650 level.

Technical indicators:

Hourly MACD – The MACD is currently in the bearish zone, but it could move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is holding the main 50 level, with a few positive signs.

Major Support Levels – $7,800 followed by $7,710.

Major Resistance Levels – $8,050, $8,200 and $8,300.