Bitcoin (BTC.X)
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Bitcoin price: the bull and the bear case

Rajlaxmi Sahu | 6:28 pm ET, 28 Nov 2018

Bitcoin (BTC.X) is trading at $4,330.84, up 15.08% from yesterday.  Bitcoin price has been very volatile lately.  Upon reaching its new lows, investors were starting to wonder about the upside opportunity.  Here are the questions we frequently get about Bitcoin as far as investing in it: 

  • Is Bitcoin currently a buy or a sell?
  • Should I sell or hold Bitcoin today, if I purchased it 3 months ago?
  • Is Bitcoin a good buy/investment opportunity?

Here are some bits of knowledge you show have about Bitcoin before you take any transaction actions.  First, let's look at the reasons to buy Bitcoin (a.k.a., the bull case):

1. Bitcoin was the first coin that is recognized globally--even large, institutional investors are opting to invest in it.  In a number of nations, laws have been passed that allow institutional investors to join the crypto market, ultimately leading to a mass adoption of the coin.

2. Unlike other cryptocurrencies, Bitcoin has never faced reliability and scalability issues.

3. Because of the recent price correction, it has a healthy valuation.  Its value in early 2018 was almost 20,000 USD, which fell by over 80% in a few months afterward.   Its cycle of price spikes and dips opens up good opportunities for the traders to jump in.

4. The number of Bitcoins which haven't been mined is very small, i.e., only 20% of the 21 million Bitcoins. Since the number of coins that can be produced is restricted until 2040, there could definitely be another spike in Bitcoin's price.

5. Bitcoin is not under a central authority like gold.  Under no circumstances will the value of your Bitcoin investment be wiped out because of a single government's decision.

After reading those good five reasons to buy Bitcoin, let's also look at the reasons to sell it (a.k.a., the bear case), in case you already possess some coins:

1. The continuous crash of Bitcoin price over a long period of time is becoming a serious concern to investors.  This detracts people from investing in it.

2. Crypto volatility is creating permanent damage to the BTC ecosystem. If we look at the past five price corrections in Bitcoin's history, we can find out that 80% of the retracement was off of the lowest price levels, which indicates that there might be a further fall in its price in the upcoming period.

3. Bitcoin will rally when it demonstrates real value and solves important problems.  So far, it hasn't demonstrated yet.  Its commercial viability is declining as the time goes by.

Lastly, investors who had already bought Bitcoin, are liquidating their investments in order to avoid losing more money.

Over the last 30 days, BTC.X lost -43.13%.  Where will it go from now?

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Ethereum and Bitcoin panic selling: what's next?

Rajlaxmi Sahu | 7:54 am ET, 20 Nov 2018

Ethereum (ETH.X) is trading at $134, down -14% from yesterday.   Bitcoin (BTC.X) is trading at $4,481, down -15% from yesterday. On the hourly charts for the ETH/USD and BTC/USD pairs, there is a visible a bearish trend line.  What is the price prediction for those two cryptocurrencies?

Bearish trends for Ethereum and Bitcoin indicate an extended selling pressure in the cryptocurrency market.  Given the active futures market for Bitcoin, analysts have attributed the sell-off to stop orders by professional investors and panic selling among retail investors.

Both Bitcoin and Ethereum are now trading at levels below those from Thanksgiving a year ago.  This concludes the 'gold rush' by retail investors that started roughly around the same time.   

There are some chances that renowned ICO projects might liquidate their ETH holdings.  Many of the decentralized applications leveraging Ethereum are essentially profitless. In order to sustain development costs against the falling market demand, some ICOs will choose to sell their Ether. So, the imbalance between demand and supply for Ethereum and Blockchain is instigating an overall bearish trend in the market.

On the macro front, investors are expressing doubts about the timeline for real-world applications of Ethereum and Blockchain.  Scalability still remains a major challenge for the Ethereum network and is a hindrance to its large-scale adoption. There are other projects that are circumventing Ethereum's shortcomings, but they also face feasibility and commercialization challenges.

What is Ethereum's near-term price forecast?  We think that in the upcoming period, Ethereum's and Bitcoin's price will be a subject to speculative investors' whims.  Here are the major technical indicators:

  • MACDs for both Ethereum and Bitcoin are the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.  MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
  • RSI (relative strength indicator) for these two cryptocurrencies is in the 10-15 range, indicating they are both oversold.  RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security.

Over the last 30 days, BTC.X lost -30.94%. 

Over the last 30 days, ETH.X lost -35.05%, which is 4.35 percentage points lower than the 30-day return of Bitcoin (BTC.X).

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Ripple's recovery: price analysis, prediction and news bites

Rajlaxmi Sahu | 1:39 am ET, 18 Nov 2018

Ripple (XRP.X) is now trading at $0.51, up 9% from yesterday.  On the XRP/USD pair's hourly chart, we notice that yesterday's bearish trend line is now breached and the traders' sentiment is now moving towards bullish.  

Ripple is now the second largest cryptocurrency in the world, with a market cap of $19 billion. It has overtaken Ethereum, which was more than twice as large as Ripple in terms of market cap a year ago.  During the most recent selloff, XRP was able to hold a much stronger ground than its peers. 

Ripple is continuing to build on its momentum: it established a banking partnership with CIMB Group. In Southeast Asia, CIMB is the fifth largest banking group. The goal of the partnership is to implement RippleNet software for processing cross-border payments, enhance transaction speed and drive down international payments costs.  CIMB is the first bank in Asia to use Ripple's blockchain technology.  

Investors find XRP interesting because it shows little correlation to Bitcoin.  Amidst all the chaos in the crypto market, XRP fared well because, unlike other competing cryptocurrencies, it is designed as a top-down system, with strong governing principles, and it's less susceptible to government interventions.

What is Ripple's near-term price forecast?  Here are the major technical indicators:

  • MACD has moved back into the bullish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.  MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
  • RSI (relative strength indicator) is at 56, which is a neutral position.  RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
  • A new major support level is forming at $0.47;
  • A new major resistance level is forming at $0.54.

Over the last 30 days, XRP.X gained 2.21%, which is 17.37 percentage points higher than the 30-day return of Bitcoin (BTC.X).

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Bitcoin price has stabilized, but what is the prediction now?

Rajlaxmi Sahu | 9:04 am ET, 16 Nov 2018

Bitcoin (BTC.X) is trading at $5,590, up 2% from yesterday.   Bitcoin witnessed a big decline recently; however, the price seems to have stabilized now.  On the BTC/USD pair's hourly chart, there is still a bearish trend with a resistance at $5,400. 

Changpeng Zhao, Binance's chief executive, believes there are good chances of Bitcoin entering a bull run similar to the one that occurred at the beginning of 2018

The recent fall in cryptocurrency prices was eventually contained, which indicates there is significantly less BTC day trading today compared to a year ago.  The crypto market appears to be healthier, and some key industry analysts, such as Albright Investment Group's founder Victor Dergunov, believe an upswing is inevitable.

Dan Morehead, the CEO of Pantera Capital, a cryptocurrency hedge fund in the US, is also bullish about Bitcoin.  He spoke about the biggest challenges of the Bitcoin space and its evolution so far, such as accessibility. His perspective is that the cost of acquiring Bitcoin is going to be cheaper, and the acquisition process will become easier over time.  His firm Pantera Capital has set up a fund which allows institutional investors to get exposure to Bitcoin.

What is the near-term price forecast for Bitcoin?  Here are the major technical indicators:

  • MACD of Bitcoin is currently in the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.  MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
  • RSI (relative strength indicator) is at 20, which is a clear buy signal.  RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
  • A new major support level is forming at $5,360;
  • A new major resistance level is forming at $5,850.

Over the last 30 days, BTC.X lost -15.31%.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Cardano's plunge: price analysis, forecast and key things you should know

Rajlaxmi Sahu | 4:21 pm ET, 14 Nov 2018

Cardano (ADA.X) is trading at $0.06, down 17% from yesterday.  This signals a major bearish trend, instigated by a speculation that SEC is ready to target dubious crypto projects.  

Bitcoin plunged 12% today, while many other smaller cryptocurrencies have posted losses in the range of 20%.  The dip in Cardano's and Bitcoin's price is a clear indication of the market volatility.

This sudden price movement doesn't undermine Cardano's value proposition. Cardano has been relatively stable in the world of cryptocurrencies, and it is persistently making efforts to expand its ecosystem and create new partnerships.  Cardano launched a paper wallet and partnered with Metaps Plus, one of the largest South Korean mobile companies. The launch did not move the price; however, it plays a major role in the success of the project.  

Charles Hoskinson, Cardano's co-founder made an announcement about reaching a milestone in finding a solution for blockchain interoperability: his project launched a react-native library that will enable the development of mobile apps exposing blockchain to the masses. In the upcoming year, a number of Android and iOS apps will be built to champion Cardano's infiltration in the mass market.

Besides the react native library, there are other projects evident of Cardano's development progress.  The Shelly project aims full decentralization and is expected to begin in 2019.  It will empower the community by handing its members over voting rights and delegating system nodes.

What is Cardano's near-term price forecast? Here are the major technical indicators:

  • MACD is in a bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.  MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
  • RSI (relative strength indicator) is in the level 33, approaching the oversold zone. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
  • A new major support level is forming at $0.055;
  • A new major resistance level is forming at $0.071.

Over the last 30 days, ADA.X lost -10.94%, which is 8.01 percentage points lower than the 30-day return of Bitcoin (BTC.X).

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Bitcoin price analysis and news bites for November 2

Carla Olson | 5:29 pm ET, 01 Nov 2018

Bitcoin (BTC.X) is trading at $6,375.77, up 0.8% from yesterday.  The price has been fairly stable/volatile lately.  What is Bitcoin's price forecast?  What recent developments should Bitcoin investors be aware of?

The news of the day is that Wasabi Wallet has finally been released.  Wasabi is a privacy-focused, Bitcoin wallet for Windows, Linux, and OSX.  The main feature of Wasabi is that it protects investors' information leak against network adversaries.  It also comes with an intra-wallet blockchain analysis tool that can help consumers make well-informed spending decisions.

Our hope is that a great percentage of bitcoiners will use Wasabi Wallet and take privacy precautions proactively.  Wasabi offers a major improvement in the areas of fungibility and privacy.  Combining Wasabi with Breeze and Lightning should address 90% of consumers' needs when it comes to privacy and fungibility. 

Now let's look at the technical sentiment for Bitcoin.  How is the price expected to move in the near term?  

Here are the major technical indicators:

  • MACD is back in the bearish zone.  MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.  MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
  • RSI (relative strength indicator) is currently 43, implying that the coin is moving to the oversold territory.  RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
  • A new major support level is forming at $6,255;
  • A new major resistance level is forming at $6,435. 

Over the last 30 days, BTC.X lost -3.01%.  See the chart below for details.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Bitcoin (BTC.X): what do the bears say?

Rajlaxmi Sahu | 5:58 am ET, 16 Oct 2018

Bitcoin (BTC.X) is trading at $6,600.  The price has been fairly stable lately, after a fall of over 53% in 2018.  

What is Bitcoin's price forecast? What do the bulls and the bears say?

Mike Novogratz, a Forbes-ranked billionaire, and the former hedge fund manager at Fortress Investment Group, asserted that there is no expectation for Bitcoin's price to rise beyond $10,000 until the second quarter of 2019. The next bullish trend can be expected when institutional investors rapidly enter the space and drive Bitcoin's price up.

As a matter of fact, institutional investors are increasingly sitting on the sidelines when it comes to cryptocurrency investments.  Many portfolio managers shun cryptos.  Ken Griffin, the founder and the CEO of Citadel, recently reminded us how “unfortunate is the amount of hype and the number of early investors who’ve been caught up in [the cryptocurrency] hype.” 

A chronic lack of demand has led to uncertainty around Bitcoin's next big price move. This has caused investors and traders to remain put, resulting in Bitcoin's struggle to break the $6.8k resistance level.

Because of Bitcoin's fixed supply, which is less than 21 million, owning and holding 0.28 of a single BTC makes you a one-percenter of the current world’s population.  Throughout the next few years, the scarcity of Bitcoin will increase as more investors and institutions continue to accumulate the cryptocurrency, which could further reduce the total possible number of individuals that can ever own one whole Bitcoin.  

Now let's look at the sentiment for Bitcoin.  How is the price expected to move in the near term?  Here are the major technical indicators:

  • MACD is back in the bullish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.  MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
  • RSI (relative strength indicator) is currently above 50, but still in the neutral zone. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
  • A new major support level is forming at $6,300;
  • A new major resistance level is forming at $6,620.

Over the last 30 days, BTC.X lost -10.62%.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Bitcoin Cash (BCH.X): what's the price prediction now?

Rajlaxmi Sahu | 7:08 am ET, 13 Oct 2018

Bitcoin Cash (BCH.X) is trading at $443.31. Bitcoin Cash is facing heavy selling interest below $450 against the US Dollar. On the BCH/USD pair's hourly chart, a key bearish trend line can be noticed with a resistance level of $450.

What should Bitcoin Cash investors be aware of?  What is Bitcoin Cash price forecast? 

From the perspective of a Bitcoin Cash investor, the price seems to have fallen off sharply since the recent highs of $573.  The previous Bitcoin Cash price spike is attributed to Bitmain's IPO announcement.  In order to offer securities to the public, Bitmain, one of the world's largest digital currency miners, filed a prospectus for its initial public offering, which instigated enthusiasm in the broader Bitcoin community.

Bitmain released its financial records for the first time indicating an excellent position on the market. It made a profit of more than $700M during the first half of 2018, an 800% year-on-year increase.

The price of Bitcoin Cash rose immediately with the announcement of the news. This is because Bitmain holds a huge amount of Bitcoin Cash. And by filling up its 'treasure chest' with more funding, Bitmain will contribute even a greater amount of money towards BCH mining.

Other than Bitmain's IPO plans, there are some other important commercial developments for Bitcoin Cash.  In order to address rising competition, several brokerages such as Gemini and Nittrex are ramping up their altcoin listings. The Gemini exchange has received a regulatory approval for its BCH listing.

What is the price sentiment towards Bitcoin Cash?  Here are the major technical indicators:

  • MACD is in the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.  MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
  • RSI (relative strength indicator) is hovering around 50, which implies the sentiment towards BCH is neutral.  RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
  • A new major support level is forming at $425;
  • A new major resistance level is forming at $460.

Over the last 30 days, BCH.X gained 7.2%, which is 10.48 percentage points higher than the 30-day return of Bitcoin (BTC.X).

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Bitcoin: what do the bulls and the bears say?

Carla Olson | 5:25 pm ET, 19 Sep 2018

Bitcoin price has been less volatile lately compared to 6 months ago. As the price becomes more stable, consumers are starting to think about investing in Bitcoin again.  As you're thinking about this, take a look at the questions we frequently get about Bitcoin as an investment or trading opportunity:

  • Is Bitcoin currently a buy or a sell?
  • Should I sell or hold Bitcoin today, if I purchased it 3 months ago?
  • Is Bitcoin a good buy/investment opportunity?

 Before making any premature decisions, taking a look at the bull case for Bitcoin:

1. Bitcoin is the most established cryptocurrency with the highest market capitalization, north of $100B.

2. An increasing number of investors and entrepreneurs see bitcoin as a legitimate asset class just like stocks, bonds or commodities.

3. Financial infrastructure is rapidly gaining maturity, which provides great support for digital currencies such as Bitcoin.  For example, GDAX and Coinbase now support margin trading

4. Bitcoin is like gold today.  Even if a lot of money is printed by the central banks, or in wartime circumstances, the value of Bitcoin won't fall dramatically.  The cryptocurrency remains a decentralized computer network that can't be controlled by an authority such as the Federal Reserve.

5. Because of the volatile market conditions and political uncertainty, the faith in government institutions and the stock market is reducing, while the popularity of Bitcoin is growing.

6. Investing in Bitcoin is not a difficult task.  It is as simple as buying a stock on an online exchange. By using a zero-cost brokerage such as Robinhood, this can be done easily.

Here are the reasons to sell Bitcoin cryptocurrency (a.k.a., the bear case):

1. Bitcoin use cases for ordinary consumers in real life are somewhat limited.  The reality is far from what the Bitcoin team actually claims. Stores such as Overstock and Subway accept Bitcoin besides cash and cards. But to this date, Bitcoin does not replace cash. Besides this, Bitcoin transactions take a longer time than using a credit card.

2.  Bitcoin is more likely to get scrutinized by government authorities since cybercriminals and drug dealers use it as the principal method of payment. For example, cybercriminals involved in the recent ransomware attack named WannaCry asked for a payment in Bitcoin.

3. The high volatility of  Bitcoin makes it less appealing to investors.  Looking back over the previous five years, one can find many instances when Bitcoin experienced spectacular crashes.  Even if it is performing well, there is no assurance that it won't crash tomorrow. 

4. Unlike hard cash or securities, Bitcoin has no tangibility. It is just a piece of code or a special digital storage vault, but a person can't ask a company or any financial institution to honor it in any country.

5. Bitcoin has a high risk of fraud.  The general population is still not knowledgeable about Bitcoin, so fraudsters are likely to take advantage of this situation (e.g., launch a Ponzi scheme that 'guarantees' high rates of returns).  

Bitcoin (BTC.X) is trading at $6,343.12.  Over the last 30 days, BTC.X gained 3.3%.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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