Make Believe Technical Analysis – Will Trading The Trends Work At All AnymoreJanuary 12, 2019
The price of Bitcoin will not fall to zero. This is even when there are many types of Altcoins flooding the market.
The bear market has depressed most of the investors; however, Bitcoin Bulls continue to believe that the demand will increase with BTC’s price. The bears continue to believe that the price will go down to zero.
Bitcoin has a fundamental value and therefore is not likely to fall to zero. The fundamental value of Bitcoin is related to the demand for its decentralized ledger and access.
Several Bitcoin wallets that have been dormant for a long time are now triggering some major movements in the market. These wallets have holdings that are sufficient to move markets, and they have been there in the wallet for more than six through 30 months.
Tim Draper of Draper Associates stated that there have forever been ups and down with digital currency. He further added that he can see a Bitcoin revolution coming.
He continues to be positive about the possibilities of blockchain and the Bitcoin. Being a digital currency that is being accepted without any interference from the government or any friction, there are several other uses to this currency type. Bitcoin wallets are excellent options for Escrow.
Sony Singh notes that things are healthy for the cryptocurrency industry as the indicators are bullish. The major attack on the Ethereum Classic Network has caused the price of Bitcoin to go further down.
The losses of 2018 are enough to reinstate that the price of the cryptocurrency can hit the worse lows than anyone with a faint heart could accept.
Without a real-world asset talking for the price of Bitcoin, it is going to be very hard to predict whether the price will be bearish or bullish. There is an optimistic price prediction for $5000. If this should happen then, Bitcoin should breach the $4k, the current upper resistance level. However, in the current scenario, where cryptocurrencies are dumping their gains, it is going to be difficult for the currency to sustain the lower resistance level at $3,400.
The volatility is here to stay; however, this can only change with improved mass adoption. Though several merchants are accepting Bitcoin, factors like transaction time and scalability issues are creating concern. This can be offset when the Bitcoin collaborates with major banks and financial institutions.
We are left wondering if we are dealing with a bunch of charts that are truly technical indicators or make-believe stuff. Whether one should trade with the trend continues to be a question?