The Currency Analytics
By Dan Saada
The Bitcoin rally in the past week created a lot of excitement about Bitcoin doing the big price thing all over again. Are we on the verge of a new breakout?
Bitcoin is showing proof of revival. Before the Bitcoin corrected lower versus the US Dollar, a new yearly high was formed at $5,465.
Notwithstanding the recent correction below the $5,200 mark versus the USD and BTC, the strong uptrend for the Bitcoin continues.
The MACD is about to move to the bullish zone on the 4-hour chart. The RSI on the 4-hour chart is placed below the 50 level.
When comparing Bitcoin to other commodities in terms of supply and demand, it can be seen that the price affects the supply.
And, when the supply goes up, the demand comes down and there is a decline in the interest in production. Substitutes are looked for.
When a particular currency is denominated to indicate the price of the goods, then the currency becomes expensive when compared to the denominations made in alternative currencies.
While self-correcting mechanisms will be in place in all markets, if there is increased demand, this will increase the fees that the miners will be able to charge while…