- Bitcoin (BTC) stable above $5,000
- Adoption will drive BTC prices higher
For mainstream adoption of digital assets, there must be utility. Bitcoin as a peer-to-peer cash system is useful with a secure network that is censorship resistance and immune to politics. With increasing use fueled with next year’s halving, Bitcoin (BTC) is likely to expand.
Bitcoin adoption is all about the number of individuals willing to ditch fiat and hold BTC. To satisfactorily gauge how many do, analysts track active Bitcoin addresses. Good news is, despite the cyclic nature of Bitcoin and other asset prices; the number of BTC public addresses is up.
Not surprising, the number of BTC users tend to correlate with prices. As BTC prices edge higher, we expect the number of addresses to increase reflecting flow from fiat, further increasing demand and dominance of the world’s most valuable asset.
Presently, prices are up, and as analysts project BTC’s next wave of higher highs to blast above 2017 peaks towards $50,000 and even $1 million, investors are upbeat. Technically, candlestick arrangements are supportive but fundamental developments are crucial.
A case in point is next year’s halving which, if history is a guide, will likely support prices thanks to reducing scarcity—and encouragingly, increasing demand. That, and the US Presidential election many ruffle traditional markets through uncertainty further boosting Bitcoin, a global coin that is slowly evolving into a new-age asset that can serve as a store of value, a medium of exchange and a settlement layer.
Bitcoin (BTC) is up, reversing shocks of early this week. Gains from NY session did spill over, and traders are building on from the Asian and European sessions. At spot rates, BTC is stable.
Nonetheless, what concerns us is the confirmation of Apr-30 bull bar printing a three-bar bull reversal pattern off $5,000. From our previous BTC/USD trade plan, it was imperative that bulls reject further price depreciation.
Now that prices are edging higher as buyers seek to reverse losses of Apr-30 albeit with low transaction levels our trade conditions hold. Moving on, risk-off, aggressive traders should load at spot rates with stops at $4,950 in line with our previous trade plan.
However, for trend continuation and confirmation of Apr-2 buyers, prices must close above the double-bar bear reversal pattern of Apr-24 complete with above average volumes.
As aforementioned, buyers are in control. From candlestick arrangement, Apr-2 bear bar determines the short to medium trend. With 18k versus 10k averages, break above $5,600 or $4,950 ought to be with volumes exceeding 10k average volumes, 18k of Apr-25 or 38k of Apr-2.
Chart courtesy of Trading View
The post Bitcoin’s Future is Shining but BTC Bulls under Liquidation Pressure appeared first on NewsBTC.
Post written by our friend Dalmas Ngetich
and Syndicated from NewsBTC
Syndicated from NewsBTC.com