Fundamental & Technical Analysis of BTC
There has been speculation of Bitcoin dropping to $3000 and also some suggesting Bitcoin to climb it's way up to $80,000. In my opinion these are two extremes and until clarity is obtained from a regulation perspective and also general acceptance from the general popula, none of these price will be reached.
First of all you have to understand that Bitcoin's main aim is to recognise itself as a currency. A currency which cannot be forged, very difficult for fraud to operate and most importantly with a limited supply. What Bitcoin is trying to achieve is revolutionary. Crypto currency may or may not be an emerging market but Blockchain is the only future this world will experience within the next few years. The set-up is all there, countries are scrambling for the best way forward. Malta and Switzerland already recognised themselves as Crypto havens which will help pave the way for other countries to follow. Go Malta! (Yes I am Maltese).
Malta already experienced an emerging market through iGaming and the economy boomed like crazy. Nowadays iGaming generates around 12%+ of Malta's total GDP which is a huge increase in less than 3 years. Imagine Blockchain adoption on a global level.
Yes everyone knows Bitcoin price has been falling since January. This is what happens when something new and exciting is coming up. Who can resist not being part of a revolution? Bitcoin has had a huge correction from $20,093 to $5,743. No one can argue that $20,000 is a deserved price for a new phenomenon trying to establish itself as a digital currency. My parents still cannot understand how you can pay for a house using crypto currency. Exactly like they couldn't understand how a works. Look at the .com phenomenon.
Price - Price currently stands at $6460 after reaching $6820. This small run pumped the crypto space and gave hope to crypto believers. The red arrow above correlates with the 2 green arrows below the and . Price made a lower low while and made a higher low hinting a forecast through what is known as a . More often than not a marks the end of a downtrend. Also the fact that this is the day chart makes it more realistic due to all the data each candle stick holds.
I expect a pullback here. In the short term price may fall and bounce at $6300 area. However note that $6400 was previous resistance. Hence it may be concluded that:
Major Support: $6275
Temporary Support: $6400
Temporary Resistance: $6650
Major Resistance: $6850
RSI - is making higher lows and is attempting to find a place to rest and resume it's way up towards the overbought direction. If it forms a bottom above 40 we should be golden. also broke previous highs since May which shows that bulls can be seen from a distance.
Stochastic - is showing that momentum is picking up. is currently high (close to overbought) and looks like price will fall which we agree with since we expect a retracement. Bottom should be found without going into oversold territory. If it doesn't then pullback can be confirmed and see Bitcoin price moving upwards.
Bollinger Bands - The mighty are showing Bitcoin entering a squeeze. A squeeze indicates that price will make an aggressive move either up or down. The probability of it going up exceeds that of going down basing it solely on TA.
Bitcoin looks to have more upside than downside in the future. Remember that this is a day chart. One wave cycle could take a week or two to form. The is crystal clear and signs for a bull run are evident. If you're holding alts which are in loss do not panic. You're in this for the long term.
You believe in crypto currency, you believe in blockchain, you are part of a revolution. Well done!
Major Support $6000
Temporary Support $6275
Temporary Resistance $6400
Major Resistance $6600