Bitcoin Price Analysis–Jan 7
Latest Bitcoin Price
There are several intrinsic properties found in Bitcoin that aren’t available in other blockchain systems. Aside from enjoying the first mover advantage—although Ripple and Jed McCaleb could have taken this spot with their early development—it is also the only coin that has this decentralization stamp from the US SEC. Together with Ethereum, investors can trade and even store or hodl these coins with the full knowledge that the SEC will not declare them securities forcing them to adjust to the world of regulator‘s compliance.
Perhaps that is the reason one Davincij15, a metals and crypto trader and investor foretold the unprecedented and almost inevitable investment we are currently witnessing in the space. While talking of the easy of fund transfer and the very realization that neither the US Government nor banks would charge exorbitant fees or levies, his video went viral back in 2011 when the price of BTC was just a mere $9.57.
Of course there has been an explosion in this space and with entry of institutional grade investors, we expect re-adjustment and even dilution of the very ideals of blockchain as the community bend as they bid to allow in regulators to probe and introduce every policy that protects “ordinary investors” channeling their funds through institutions as retirement funds and others regulated entities.
Naturally, every maximalist would want to see natural adoption and finally a snowballing effect as Metcalfe law kicks in helping in replacing obsolete systems highlighting how superior Bitcoin as a network is.
Bitcoin Price Analysis
At spot price, BTC is up 6.1 percent against the USD according to data from BitFinex—which is due to shift their servers from AWS to a data center under their control. The markets expect this to impact prices and yesterday’s gains could spill over to today profiting investors.
All in all, our previous trade plan is solid and as long as prices are maintained above our first level of resistance–$4,100, bulls are well positioned to above $4,500 beckoning bulls who would then fuel the next morale-boosting rally towards $6,000.
There are hints of these happening and as we can see from the charts, bullish events of last Dec 2018 could be the foundation of the next wave. Remember, if BTC bulls fail to drive prices above $4,500, there is a risk that sellers would jump in spurring an undesirable liquidation causing a dump towards $3,500.
On the flip side, sharp gains above $4,500 would confirm the three—bar bulls reversal bars of Dec 14-17 and the double bar bull reversal bar of the week ending Dec 23 opening doors for $6,000—an important resistance level.
Our previous BTC/USD trade plan is constant and this is how we have mapped out our trading:
Buy: spot, $4,500
Stop: $3,800, $4,100
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.Leave a comment