Will the Blockchain revolution come? "(Wiener Zeitung)," Don’t we want governments anymore? "(Kleine Zeitung),"
Land of the mountains, Land of the Blockchain "(Die Presse): The fact that the Blockchain is in the trend, is already on the
headlines and the rapidly growing number of media reports:
Last year “Bitcoin” and “Blockchain” was only mentioned 46 times whereas in 2017 it was mentioned over 1000 times in the media.
So what exactly is behind all that:
The blockchain works like a digital ledger, which distributes transactions with cryptographic methods in a chain of data sets
(blocks) simultaneously to many computers, that is decentralized stores.
Although manipulations can’t be ruled out in principle, they are extremely unlikely because the data would have to be changed
on all participating computers.
The type of data doesn’t matter: whether values of a currency (Bitcoin); Land registry entries or commercial transactions. The key
is that each transaction builds on the previous one and becomes part of an unchangeable chain of uniquely identifiable blocks of data. The
question of whether Blockchain is hype, revolution or both can hardly be answered from today's perspective.
For Ernst Piller, head of the Institute for IT Security Research at the University of Applied Sciences St. Pölten, the
Blockchain is above all "spirit of the time": "It's about sharing and distributing, away from centralization, that's a good thing."
Bitcoin continued to push a new all time high today after completely recovering from the 30% correction less than a week ago. The market cap now stands at $131 billion, with $5 billion in trading volume over the past 24 hours.
In the image above, we have shown the 4-hour chart of the BTC/USD.
It looks like price has just touched the psychological level at 8,000 USD. This level coincides with a previous high, as well. We have outlined in the red square the resistance zone that was formed on the 7th of November.
What can possibly happen from here?
Scenario 1
The first potential scenario is to see the price breaking out of the 8,000 USD level. To see that happen, we will need more bullish news
Scenario 2
A second hypothetical scenario is to see the price rejecting the 8,000 USD level and forming a bearish pattern. Then we might see the price dropping down to the major support level at 5,600 USD. Maybe we will also see a larger drop if price rejects the 8,000 USD level.
Since early September, prior to the initial coin offering (ICO) and cryptocurrency trading ban by the Chinese government, the price of Ether has struggled to remain in the $300 region, despite significant optimism surrounding developer activity and solutions on Ethereum such as the Byzantium hard fork and Ethereum co-founder Vitalik Buterin’s scalability solution Plasma.
Furthermore Blockchain, the second most popular bitcoin wallet behind Coinbase, announced few days ago that it will integrate Ethereum into its mobile wallet, the most widely utilized bitcoin mobile wallet in the market. Maybe this and more upcoming good news will push the price back to all-time high and beyond.
Technical Analysis
This past week was mostly neutral for ETH price above 280 USD. The price was seen recovering towards 305-310 USD, but sellers managed to defend further upsides and pushed the price down.
At present, the price is back above 50-day moving average level (300,52 USD) and trying to gain momentum. A break above the 309 USD level is required for buyers to push the price up to next resistance near 345 USD.
