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Bitcoin Price Jumps Slightly

November 2, 2018 at 18:06 by Arathur Stephen

Bitcoin price has finally seen a directional movement this week, after spending weeks consolidating in tight range-bound trading conditions. Before discussing the current state of the 10 years old king of cryptocurrencies, lets first discuss why the world’s largest asset manager, BlackRock wants to stay away from Bitcoin ETFs.

CEO of BlackRock, Larry Fink Won’t Get His Hands Dirty

As the pressure mounts for Bitcoin exchange-traded fund (ETF) to gain approval, one organization, BlackRock, the world’s largest asset manager with $6.4 trillion of AUM, says it will stay away from that route until Bitcoin and the cryptocurrency space becomes legal.

While speaking at the New York Times DealBook Conference, the Chairman, and CEO at BlackRock, Larry Fink  said according to CNBC,  that his company would not consider launching a Bitcoin ETF until the crypto industry becomes “legitimate.”

Despite seeing a lot of potentials in the blockchain, the underlying technology behind Bitcoin, Fink believes that the crypto industry needs to grow up and become more advanced before his firm considers launching an ETF for digital assets. Fink expressed his concern this way:

I do see one day where we could have electronic trading for a currency that could be a store of wealth. But right now the world doesn’t need a store of wealth unless you need that store of wealth for things you should not be doing.

The CEO, like many other Wall-Streeters, is a staunch Bitcoin bear, perhaps not as much as Warren Buffet, the CEO of Berkshire Hathaway who said back in May that Bitcoin is “probably rat poison squared” or Jamie Dimon, the Chairman and CEO of JPMorgan Chase who said on Wednesday, during the 10-year anniversary of the Bitcoin white paper, that he didn’t give a “sh*t” about Bitcoin. Whilst speaking earlier in 2017 at the Institute of International Finance, Fink was quoted as saying:

Bitcoin just shows you how much demand for money laundering there is in the world. That’s all it is. I mean, it is an index of money laundering.

Fink & BlackRock Optimistic About Blockchain Technology

In the meantime, the regulation of the crypto industry has remained patchy and inconsistent. Furthermore, digital assets are in most jurisdictions unregulated and are even considered illegal in certain countries.

Meanwhile, the Securities and Exchange Commission (SEC) has postponed its own decision on Bitcoin ETF to better comprehend the concept. While none is yet to gain the agency’s approval, the one that has drawn most attention was that submitted by VanEck SolidX. However, while calling attention to Bitcoin’s anonymity as an additional risk factor, Fink said:

It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going for tax evasion and all of these other issues.

Despite his skepticism about digital currencies, Fink and his company believe that blockchain is a different thing and it has nothing to do with digital money. He is also convinced that the technology has a great untapped potential for businesses and will have significant usage in the near future. He further added:

We are a huge believer in blockchain. The biggest use for blockchain will be in mortgages, mortgage applications, mortgage ownership, anything that’s labored with paper.

Bitcoin Price Jumps Slightly

Bitcoin is in a bullish trend as it has seen some positive price action over the past 24 hours of trading. BTC jumped slightly higher and it is now trading above the $6400 handle.

Since October 15, the flagship cryptocurrency has been range bound above the $6,500 level. The BTCUSD pair broke out from the range bound movement on October 29 and dropped to a low of $6,300 and started another range bound movement. On Friday, the price action shows that Bitcoin is in a bullish trend, however, the price is within the bearish trend zone.

The number 1 digital currency is currently holding a total market capitalization value of around $3.78 billion after seeing a 90-day price decrease, totaling -8%.

Let us now proceed and technically analyze the price action a little closer and highlight any areas of potential support and resistance.

BTCUSD Technical Forecast

Bitcoin price is currently is below the 12-day  Exponential Moving Average (EMA) and 26-day EMA thus making it look bearish. However, if the bulls continue the upward trend, the price will remain within the bullish trend zone. Nevertheless, the Stochastic indicator has confirmed a bullish trend. Previously, the Stochastic indicator had shown that the BTCUSD pair is being oversold. That means the momentum was strong on the bearish trend.

The Stochastic indicator is now above 20. That is to say that the bears are losing the grip and price is reversing as the blue band of the indicator is above the red band. Furthermore, the bands have exited the oversold region of the chart. However, if the price of BTC breaks the resistance levels of $6,600 and $6,800, Bitcoin price will rally to the $7,400 level.

Looking at the short term trend, BTCUSD is in a bullish trend.  The Stochastic indicator is above 80. This indicates that the bullish trend is strong. There is the possibility that price will likely close near the top and continue its upward move. The price Bitcoin can probably reach the highs of $6,800 and $7,400 price levels.

Resistance levels: $7,000, $7,200, $7,400

Support levels: $6,300, $6,100, $5,900

If you have any questions and comments on Bitcoin today, use the form below to reply.

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