Bitcoin gained 1.36% earlier today rising from $442 to $448 in just one hour right after Glenn Hutchins, a Federal Reserve Bank of New York board member and investor, came forth with bullish news about Bitcoin and the BlockChain technology. In his speech he drew a bold parallel between Bitcoin and the Internet and, among other things, mentioned that he has bought Bitcoin himself and is currently investing in various Bitcoin companies.
We didn’t reach $500… yet
In the last weeks of April there was a lot of fuss on Bitcointalk about the possibility of the price reaching a whopping $500 USD mark on or before May 1’st, but as we all now know, this somewhat feasible dream was instead met with a steady two-day price decline on the 27th and 28th of April where the value of Bitcoin fell sharply a total of -7,25%.
Impact of bullish news
Glenn Hutchins is a man to be taken seriously and we have already witnessed that the first wave of bulls have returned, albeit cautiously for now.
When a board member of a Federal Reserve Bank of New York comes out in the open and says that “hey, I’ve bought Bitcoin myself and I will start investing in Bitcoin companies“, it’s not that far-fetched to think that at any moment now the herd will follow.
$500 in May or early June?
This, along with the fact that an event called “the halving” is right around the corner, leads me to believe that $500 in May is a very strong possibility especially because in the last few days the price has fallen just enough for it to look delicious again for the bulls.
After all, Bitcoin is an asset more closely controlled by the fundamentals than anything I’ve seen before. It’s true that technical analysis works to a certain degree, but every time news like this comes out, Bitcoin simply goes nuts!
It’s like a feather in the wind that’s blowing from many different directions and that being said, I believe this month and the next will be a very interesting ride to either simply observe or be a part of directly.
The price of Bitcoin retraced from yesterday’s high of $452 to $443 today on the 22nd of April, 2016 declining -1,99%. It has currently formed a nice hammer on the BitstampUSD chart and while there is still more room to go down on the Slow Stochastic oscillator along with MACD and RSI, the overall feel is very bullish and looks like we’re currently around a good place to go long once again.
Bullish Bitcoin getting everyone excited
Given that the price of BTC has been moving rather slowly for the past couple of months, it’s no wonder that there’s an increased activity on Bitcoin related forums and message boards now when the bulls have returned and people are eagerly looking forward to the $500 per coin in the short term.
When a poll was opened today on Bitcointalk, the majority of voters believed that Bitcoin will reach above $480 by May 1’st which is only 8 days from now.
A beautiful swing
When you look at the chart below you’ll see that we are currently at around a very good level for buying some more right after we get a confirmation candle along with a solid crossing on the Slow Stochastic oscillator in the oversold area.
Bitcoin payments coming to Steam
Furthermore, a popular gaming platform, Steam, just came out with more bullish news for Bitcoin by announcing yesterday that Bitcoin is coming soon to Steam as a means for gamers to pay for various games.
News like this, like we’ve seen numerous times before, tend to work out really well for the Bitcoin bulls as price is likely to increase soon after.
So, what are you still waiting for?
It looks like the three mysterious flash crash/recoveries on the BitstampUSD chart had absolutely no effect on the overall market as BTC is yet again strongly bullish with a slight hint of a small retracement on the horizon as the stochastic oscillator (both fast and slow) are crossing in the overbought area at the time of writing this post. Check it out:
Will Bitcoin reach $500?
By lurking on the Bitcointalk forums it has become apparent that a lot of people are expecting it to reach at least $500 by the time block halving happens, but after that the opinions about the future of Bitcoin get mixed.
On one hand there are people who believe it will continue to rise and eventually reach a new all time high and on the other hand there are speculators who say that Bitcoin will not survive after the halving has occurred.
Now, I don’t believe that Bitcoin will simply die just like that, but hoping for a Bitcoin that’s worth thousands of dollars is a little unrealistic even after the halving because halving doesn’t actually decrease the overall supply, but merely slows it down.
In reality nobody knows for sure, but I personally believe that it’s worth betting on a new all time high price instead of being overly pessimistic about it. Okay sure, there are a few competitors on the horizon like Etherum, but at the end of the day Bitcoin will be worth exactly how much other people are willing to pay for it and since the hype is still strong and we’ve only recently gotten our feet wet in the mainstream trading world, I don’t see why we can’t rise higher.
Ever since my last post about Bitcoin more than two weeks ago, I have been keeping a close eye on the price movement and the news as well. Judging from the chart alone, it’s highly possible that Bitcoin will soon break the $400 resistance level, because it has tested it twice already in the last two days and today’s hourly candle closed a lot closer to this level than the previous. The technical analysis is definitely showing an increasing pressure from the bulls, but that’s not all! The news have been very favorable as well.
Visa is Testing Remittances on the Bitcoin Blockchain
Visa Europe became the latest enterprise financial institution to announce a blockchain proof-of-concept this month, when it revealed it was working to leverage the emerging technology for remittances.
Report: Barbados Central Bank should hold Bitcoin
Two Barbadian economists have concluded that the country’s central bank may want to consider holding a small amount of bitcoin as part of its portfolio of foreign reserves.
Former assistant of President Obama joins Bitcoin Miner Bitfury
“I believe in the blockchain and the transformation power of this technology. And you should too. In fact, I believe in the blockchain so much that I just left my fantastic job working for Edelman … to take on the role of global chief of communications at BitFury.” Source: http://www.coindesk.com/former-white-house-staffer-joins-bitcoin-miner-bitfury/
Bitcoin bulls just getting started
The above three news were just a few examples how seriously people are starting to take Bitcoin and its underlying technology, the Blockchain. Deutsche Bank, for instance, has claimed that the Blockchain technology will become mainstream within just the next decade.
I’m a Bitcoin permabull myself and I strongly believe that we can break the $400 barrier this year. Perhaps there’s not enough power to test $500 within just two weeks, but we should be getting there in the first part of 2016 as well. See you on the moon!