Bitcoin Price Analysis: BTC Lifeline at $3,400-3,500 Zone

Bitcoin Price Analysis: BTC Lifeline at $3,400-3,500 Zone

Latest Bitcoin News

Often time, Bitcoin-although the world’s most valuable and most talked about coin has to contend with slack. Honest criticism from haters and caring supporters in equal measure. And they are justified when they make these accusations.

Read: CBoE Re-Applies VanEck Bitcoin ETF with the SEC

For one, Bitcoin in spite of all the milestones, rapid use and defying all the odds has several impediments that seem to bog progress. On one hand, we have regulators and their laws. While they agree that virtual currencies will form and parcel of the future where payment will be entirely digital, they demand compliance. Law adherence in a system designed to bypass legacy systems full of third parties charging exorbitant fees. This gags progress and limit desired adoption.

Secondly, Bitcoin may not be as popular as money because of inherent concerns. That of scalability and the natural ability of the network to respond to demand, case in point late 2017.

There are steps that the community decided to implement to bring down costs but they never went through. Segwit 2X was one of them.

Limitation of Satoshi’s revolutionary idea was first noted by James Donald:

“We very, very much need such a system, but the way I understand your proposal, it does not seem to scale to the required size.”

However, the community failed to agree on this solution. However, the lightning Network seems to be the lifeline for Bitcoin.

Also Read: BTC is no longer Digital Cash, but “Digital Gold”

The solution may not be as ideal as we want but should it gain traction then we may see a situation where micro-payments would easily go through almost instantaneously without risk of spamming the legacy network through the dreaded Sybil attacks.

BTC/USD Price Analysis

Visibly, BTC is under immense pressure. All the same, we remain optimistic but this depends on how price action reacts at key support line marking last week’s lows—data streams from BitFinex. From our previous BTC/USD price analysis, the short term trend of Bitcoin is heavily reliant on the reaction of bulls in the coming days.

That is, how fast prices will build momentum from spot prices; expand above last week’s high and clear $3,800 minor resistance line. The $3,800 mark is the risk-off, buy trigger line and the only pass to $4,500. For bulls, this level is ideal as it indicates a successful break and closes above a $200 congestion zone with limits at $3,500. It may be ideal but with strong headwinds, it would be highly unlikely unless of course is reinvigoration and there are upshots that thrust prices above this buy trigger line.

Remember, the bear’s bars of Jan 10, 20 and 28 are marked by above average volumes. Therefore, a shift of trend from bearish to bullish towing with the bulls of mid-Dec 2018 can only be marked by a surge in transactional volumes registering 35k and over. Before then, we shall trade as before—maintain a neutral stand.

All Charts Courtesy of Trading View–BitFinex

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

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry that something went wrong, repeat again!