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Bitcoin price prediction: more upside to be seen?

Carla Olson | 3:54 am ET, 25 Jul 2018

Bitcoin (BTC.X) is trading at $8,302, up 4% from yesterday.  Bitcoin price broke the key resistance against the US Dollar at $8,000.  On the hourly chart of BTC vs. USD, we find a key connecting bullish trend line with a support level at $8,250.

What is Bitcoin's price forecast, i.e., prediction? Will it rise higher in the near-term?  What's driving the price surge?

Bitcoin's dominance in the crypto market got a boost when its price broke the $8,000 level for the first time in the past two months. This sudden rise is further increasing investors' confidence about the cryptocurrency.

Bitcoin is the oldest blockchain that has the first-mover advantage and a remarkable 99.99% uptime. Also, it is the most battle-tested and most immutable blockchain with the most pronounced network effects. So it sparks the highest confidence level among the crypto investors.

During the market-wide correction, bitcoin proved to be a stable digital asset. While other altcoins are continuing to struggle, Bitcoin has started showing signs of recovery.

Other factors contributing to its success are the launch of the custodial service at Coinbase and the interest of BlackRock and other major banking and investment firms in cryptocurrencies.

The bullish trend has become even more pronounced after the news about Bitcoin ETF introduction in August broke.

As far as our price analysis and forecast, here are the major technical indicators:

  • MACD  has entered a 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 near the overbought level, with no signs of a downward movement.  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 $8,250;
  • A new major resistance level is forming at $8,500.

Over the last 30 days, BTC.X gained 35.58%.

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 price prediction: the near-term prospect for the cryptocurrency

Carla Olson | 8:20 pm ET, 21 Jul 2018

Ethereum (ETH.X) is trading at $462, up 2% from yesterday. A major downside correction occurred below $500 against the US Dollar. In the last two days, Ethereum trimmed most of its gains against the US Dollar and Bitcoin.

What is Ethereum's price prediction? What are the reasons attributing to the price volatility?

The news about institutional interest in the cryptocurrency space has caused the Ethereum price to rise. BlackRock CEO stated the company is looking into the blockchain, even though there is no notable investor demand. Still, this is an encouragement for retail investors and cryptocurrency enthusiasts because BlackRock is the world’s largest asset manager.

Traders are optimistic about the regulatory developments in the US and abroad relative to cryptocurrency space. 

In addition, there are some interesting developments about using Ethereum in the gaming space.  Gods Unchained, the first competitive e-sports project on Ethereum with backing from Coinbase, is now live.  Gods Unchained co-founder Robbie Ferguson believes the decision to launch the game on the Ethereum main chain was the right step for his parent company Fuel Games. 

"With over $50 billion turned over in in-game assets on marketplaces every year, current game publishers are essentially acting as central banks with absolutely no oversight or regulation – this needs to change," said Ferguson.  

What do we forecast for Ethereum's price in the near term?  Here are our thoughts based on the major technical indicators:

  • MACD  is 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 the 50 level (trending towards overbought).   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 $471.
  • A new major resistance level is forming at $455.

Over the last 30 days, ETH.X lost -8.11%, which is 17.01 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 surge: multiple factors contributing to the rally?

Silvy Geller | 5:33 pm ET, 17 Jul 2018

Bitcoin (BTC.X) is trading at $7,360.49, up 10.38% from yesterday.  Bitcoin price surged higher and broke a crucial resistance near $7,150 against the US Dollar.  There is a new key bullish trend line forming with support at $7,500.  

What's bitcoin price prediction, i.e., forecast?  What's driving the price?

Cryptocurrencies are largely continuing to build on a major surge that kicked off yesterday, according to Finstead, with virtually all of the top 10 cryptocurrencies in the green.

An unexpected corrective rally occurred today, pushing the price of major digital assets to spike by large margins.  Bitcoin has been one of the best outperformers among the major cryptocurrencies, rising by more than 10 percent in a short period of time. 

Positive events driving this behavior are 1. the government of South Korea regulating its cryptocurrency market, which could fuel the next rally, 2. increasing optimism in terms of regulation, adoption, and general consumer demand, 3. bullish year-end projections by ‘famous’ analysts, 4. large companies such as BlackRock setting up working groups to look into cryptocurrencies and blockchain.

The tide seems to be shifting.  Larry Fink, Blackrock CEO, had previously railed against bitcoin, calling it the “index of money laundering.”  Now,  the largest asset manager in the world, BlackRock, is looking into cryptocurrencies and blockchain, the technology that underpins them. 

How long will this rally last?  No one can really tell.  

Here are the major technical indicators:

  • MACD is trending down, slowly entering 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 correcting lower from the overbought levels.   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 $7,500;

  • A new major resistance level is forming at $7,150.

Over the last 30 days, BTC.X gained 12.52%. 

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.


Depressed volatility driving bitcoin (BTC) price down?

Carla Olson | 6:34 am ET, 22 Jun 2018

Bitcoin (BTC.X) is trading at $6,407.53, down -4.79% from yesterday, wiping away the gains from the most recent steady recovery.    What's driving the bitcoin price down and what's the BTC price forecast?

Looking at the technical analysis for the cryptocurrency, we notice some bearish signals for bitcoin:

  • Bitcoin price failed to hold gains and broke a major support at $6,700 against the dollar.
  • MACD is trending down, entering 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 now in the oversold region.   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 support level is forming is $6,300.

What do the experts say?  Bill Baruch, Blue Line Futures President, told CNBC bitcoin's "bottoming process can begin" following signs that volatility is depressed.  Bitcoin's 30-day volatility is now at 61 percent, and slightly up from its low of 50 percent earlier this month. This volatility is significantly below the annualized volatility seen last year, north of 150 percent.

After bitcoin's volatility has become quite depressed and the cryptocurrency has lost as much as 70 percent from its December peak, it's time for it to find a new bottom.  

It's no secret that the bitcoin price is going to remain unpredictable. There are massive spikes and declines, and nothing is preventing $5,000 from being the bottom.  Bitcoin challenges for 2018 involve regulation and market maturing; with larger sums, crypto is becoming a grown-up game.

However, one reason for optimism is the amount of crypto-financing in 2018 thus far, which is exponentially larger than the amount spent on financing in 2017. 

Over the last 30 days, BTC.X lost -22.54%.

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.


Are hacking issues alone responsible for cryptocurrency price drop today?

Carla Olson | 8:41 am ET, 11 Jun 2018

The Bitcoin price dropped 7% today.  Ripple, Ethereum and Litecoin have followed suit.  

A closer look into altcoin prices reveals that some other cryptocurrencies have suffered even more--EOS is down 17%, while Tronix is down 12% and Bitcoin Cash declined 10%.

The sharp drop in the price of bitcoin and other virtual currencies is attributed to the hacking of the South Korean cryptocurrency exchange Coinrail, which was compromised over the weekend.

The obvious question is, why did the price of Bitcoin and Ethereum remain relatively more stable than the price of other virtual currencies?

It's important to note that EOS, Tronix and Bitcoin Cash are all more susceptible to panic selling than the mainstream coins.  

Coinrail is a relatively minor cryptocurrency exchange in South Korea, and the volume traded on Coinrail will not impact the price of altcoins dramatically.  However, when a panic attack hits the market, manipulators are going to be most noticeable in those areas where liquidity is lacking.  

Low liquidity is an issue for most altcoins because it allows individual traders to manipulate the price of cryptocurrencies.  What follows next is a wave of panic selling from individuals who don't believe in the long-term opportunity for those altcoins, and are looking to curtail losses by liquidating their positions. 

The current decline in the price of cryptocurrencies is a move perpetrated by market manipulators who can, for all intents and purposes, drive down the price when it's opportunistic for them.

To follow the price and news about cryptocurrencies, please visit Finstead (and type "BTC.X price" or "BTC.X news" to get the latest scoop and information).

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, Ethereum, Ripple and EOS: who's winning and who's losing?

Carla Olson | 2:22 pm ET, 01 Jun 2018

As the crypto market gains more mainstream popularity, one thing is apparent--increasingly more altcoins are gaining in status, relative to the (still) most popular cryptocurrency, Bitcoin

It's a common belief today in the crypto investment world, that Bitcoin is losing dominance--and history of its market cap relative to all other cryptocurrencies shows exactly that.  Also, Ethereum, which was once viewed as the enabler of blockchain-based projects and companies, is slowly losing its supremacy.  

Some insiders, such as Brad Garlinghouse, Ripple CEO, declared that Bitcoin could be on the verge of experiencing a price downfall in the cryptocurrency community as investors are gradually becoming aware of the different currencies and alternatives available to them.

Individual investors are becoming more focused on the mission of crypto companies and currencies (e.g., what problems are they solving?) and also the teams that run them.  

So which coins are gaining in popularity relative to the rest?  And which ones are likely to make it to or stay in the top 5 list (by market cap), if they are not there already?

Two candidates that stand out are EOS and Ripple.

EOS is a well-funded project--over $4B went into it, and now the company is rapidly releasing new features and functionalities. The EOS team is an A-team--and that's a requirement for companies planning to win in the crypto space.

But funds are not everything.  Microsoft has spent billions trying to make Bing relevant and it failed. It’s not about the money but about the way you use resources, says Brad Garlinhouse.  Ripple (XRP) has used its funds very wisely in a way that has created value for their users and coin holders. 

When Bitcoin was initially offered in 2008, it was a game changer. It was the first time people could initiate transactions and trade without having banks or governments behind it.  

But the landscape has changed.  The secret source to winning in the long term is talent investment, focus on execution and long-term vision.  EOS and Ripple seem to have that--and we'll watch closely how they execute.


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): price forecast

Carla Olson | 12:11 am ET, 27 May 2018

Bitcoin Cash (BCH.X) price retracted to November 10, 2017 levels.  It's also 43% down from its May 5 local peak, and a far cry from its December heights of roughly $3,650.  

The much-hyped May 15 fork didn't really create much of a rally.  While Bitcoin Cash is focused on becoming an everyday payments network (that Bitcoin is not well-suited for), investors are reacting to this lofty mission with much skepticism.  

Why did the hard fork matter for BCH investors?  

Let's explain how things work.  A hard fork is a software update to a crypto network that results in the creation of an entirely new blockchain network.  Anyone who holds any amount of a coin that goes through a hard fork is entitled to receive a corresponding amount of the new coin. 

So any cryptocurrency that experiences a hard fork generally tends to see upward price movement in the days and weeks leading up to it.

Now that the fork is water under the bridge, what is the Bitcoin Cash price prediction?

Here are our thoughts.  Bitcoin cash price will remain under pressure, given that it declined below the $1,000 support level.  Looking at the technical indicators, here are the key things to point out:

  • Moving average convergence divergence (MACD ) is mostly negative in the bearish zone.  MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA.
  • Relative strength index (RSI) is declining towards the 30 level.
  • Major support level can be found at $950.
  • Major resistance level is at $1,060.

Out thoughts?  Be cautious, since the momentum doesn't look particularly encouraging. 

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) price manipulation: does it really matter?

Carla Olson | 7:02 pm ET, 24 May 2018

Bitcoin (BTC.X) recovered today to a price level above $7,500.  The coin price dropped yesterday because of the criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies. 

Should this concern impact investors' thought process about investing in Bitcoin?  One thing is certain--in this red-hot market for cryptos, there is a lot of misconduct.  The illegal practices that can influence prices include spoofing or flooding the market with fake orders to trick other traders into buying or selling.

Federal prosecutors are working with the Commodity Futures Trading Commission to identify the cases of spoofing.  

Virtual currencies are susceptible to fraud because of the lack of regulations that govern cryptos (in contrast to those that govern stocks and other assets).  Also, there is a good number of 'cheaters', who create wild price swings that could make it easy to push valuations up or down. 

Should you worry as an investor?  It depends on your investment mentality.  If you're a trader--perhaps this is a time when you want to be careful. 

However, if you're a long-term investor, and believe in the value proposition on Bitcoin, this is just a blip on the radar--HODL may be the right strategy.  

Follow BTC.X on Finstead--just type "BTC.X news" or "BTC.X price" to get the latest Bitcoin information and news.

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): why is the price stagnant?

Carla Olson | 11:01 am ET, 20 May 2018

Bitcoin (BTC.Xhas lost almost 15% of its value since two weeks ago. At the peak around Christmas holidays, it was trading at over $19,000. 

What is happening in the Bitcoin world?  What is the near-term price forecast for Bitcoin? 

Bitcoin investors have been predicting that meteoritic rises will commence any day now. But the price has been hovering in the $8,000-$9,000 range with surprisingly low volumes.

In absence of any significant news, the price has failed to move.  Even bold statements from the cryptocurrency analyst Funstrat completely failed to move the price.  (Fundstrat predicted the price of $36,000 by the end of the year.)

Bitcoin pessimists claim that the cryptocurrency trades much like a commodity. Over the long-term, commodity prices move towards their marginal cost of production.  Since the mining profits for Bitcoin will eventually fall to zero, miners will eventually stop producing, claim people who are pessimistic about Bitcoin.

However, viewing Bitcoin as a commodity is incorrect. Miners provide a service, called transaction verification, that Bitcoin users critically depend on.  So miners are not producers; they are laborers who perform a certain service. 

Our view is, Bitcoin has reached a local equilibrium price.  It will move up or down on some significant news.  For now, it may stay in the $8,000-$9,000  until a 'big event' occurs. 

Follow BTC.X on Finstead--just type "BTC.X news" or "BTC.X price" to get the latest Bitcoin information and news. 

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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