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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.

After surpassing the $5,000 mark, Bitcoin is poised to surpass $6,000 next. As of this writing, Bitcoin is trading at $5,390. Since start of this year it is up by more than 500%.

Here are two factors influencing Bitcoin’s price right now:

Interest from institutional investors

Recent reports from american banks refer to increased interest in value of cryptocurrencies by institutional investors. Especially as financial services begin offering various cryptocurrency-based products, it could strongly affect the liquidity and market capitalization for such currencies.

Goldman Sachs for example confirmed that it is considering Bitcoin trading while JP Morgan launched a payment network based on ethereum’s blockchain. These moves could translate into another price increase across the board.

Interest from Asia

China and South Korea may have taken some harmful actions on cryptocurrencies in the last few weeks, but that hasn’t tamped investor interest. In fact, investors in both countries are paying a premium now to invest in Bitcoin and cryptocurrencies. That’s the reason why some Bitcoin trades through China’s OKCoin exchange have already surpassed the $6,000 value in the last few days.

 

Everyone who is thinking about buying crypto currencies like Bitcoin, Ethereum, Dash is asking about the right time to buy. Should I buy today, next week or maybe next year?

These questions are now as relevant as they were five years ago, one year or six months ago. Anyone who hesitated five years ago, three years or six months ago looks very annoyed at the Coin charts and reproaches why he did not invest at that time. Bitcoin has risen by 1000 percent within two years. In January Ethereum was under 10 euros and is currently moving around the 250 euros. However, these unbelievable increases lie in the past and unfortunately do not provide information on the development in the future. Therefore, it is very difficult to find a suitable answer for potential investors.

If you look not only on the crypto currencies, but the related projects then it is to be expected that this is not only a temporary technology hype and the development race will continue. A good example is the continuous development of the Ethereum platform. The team at Vitalik Buterin invests a lot of time and energy and brings almost monthly positive news on the latest developments (see Metropolis), so that the blockchain technology can be seen as the future technology and as long as these projects have positive development, the crypto currencies will have also positive development. Therefore, we suggest buying.

Due to the reason that crypto currencies are having big volatility, they provide extraordinary chance to create big profit or loss. This year we have seen many times crypto currencies falling about 50% in just few days. Also in September 2017 we have seen Bitcoin going from 3948 Euro to 2451 Euro (Please see attached Bitcoin chat for September). Therefore, this game is not for the weak minded.

If somebody who has invested the money in Bitcoin, where the price was above 3900 Euro, it was hard time to see the price falling below 3000 Euro. The most important thing in such case is not to panic and start selling. If you are not a professional trader, with short trades you will just lose money. Better option is to stay cool and wait.

If we take Ethereum as an example and check the long-time price development for 2017, we can see a development from 10 Euro in January this year to 250 Euro today. This means that to achieve good profit from crypto currencies you need time and patience.

 

Crypto Future GmbH
DC Tower, 28th floor,
Donau-City-Street 7
1220 Vienna, Austria

  • Phone: +43 1 376 50 50
  • E-Mail: office(at)cryptofuture.com

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