Bitcoin Price Analysis: BTC/USD Could be Bottoming, Bullish Triggers Above $3,400

 
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Bitcoin Price Analysis–Dec 17

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Roger Ver, the Bitcoin Cash evangelist, often complains that there are few companies that direct Bitcoin development and that the legacy chain is pretty much centralized if not held hostage. Some point to Blockstream or Bitcoin Core developers and their attempts to squash every idea floated by developers not deemed as insiders. If indeed that is the case then we have some serious problems and talks of centralization won’t fade out anytime soon. That’s regardless of SEC utility endorsement.

Bitcoin has and continue to be open source and all BIPs are dealt with collaboratively only executed on the legacy chain once there is general consensus and stakeholders—including businesses as exchanges and processors, agree to upgrade on a deliberated block height. There were problems with Segwit 2x in Q3 last year and shortly after Bitcoin Cash came to existence with a mega-valuation—spiraled to $4,400 a pop by end of 2017.

Read: U.S. Cybersecurity Agency Acknowledges Bitcoin Threats

The inner working of Bitcoin development was recently revealed by Jameson Lopp, an important member of the core team who has been around since the beginning. In a post, Jameson said the role of the Core team via a selected maintainer account is more janitorial than authoritative maintaining that there must be consensus before new code proposals are merged into Bitcoin’s GitHub repository. Every maintainer can only merge code into core via a PGP key. For integrity, these codes can be audited by developers via Verify Commits straight from their machines.

Also Read: Tom Lee: The Fair Price of the First Cryptocurrency Is in the Range of $13,800 – 14,800

BTC/USD Price Analysis

Daily Chart

After a shakeout over the weekend, BTC has recovered against the USD and is up 2.2 percent in the last 24 hours at the time of press. Still, the path of least resistance is southwards unless of course there are solid gains above $3,500-$3,700 minor support lines as mentioned before.

Should this be the case then BTC could expand and even breach the $4,500 main resistance level opening up the skies for bulls to aim at $5,000 or pre-Bitcoin Cash hard fork heights of $6,000. That is a 200 percent surge and is highly unlikely unless of course there are solid announcements perhaps to do with scalability breakthroughs or something unexpected from the SEC.

Moving on; we expect modest gains confirming the three bar bull reversal pattern of Dec 16. If today closes higher, then we might see BTC/USD breaching $3,500 and this could be an opportunity for traders to buy on pullbacks with stops at Dec 15 lows of $3,200.

4HR Chart

From candlestick arrangement, we expect BTC to print higher in line with the double bar bull reversal pattern of Dec 15 which was confirmed yesterday. Ideally, gains above $3,400 or Dec 11 lows would be the necessary impetus to bust open the $3,500—700 resistance zone.

However, that is largely dependent on how today close. If bulls are in control and BTC register prices above $3,400 then aggressive traders can begin loading up on pull backs as follows:

Buy: $3,400

Stop: $3,280

First Targets: $3,800

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.