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Cryptocurrency in focus - Bitcoin


Is crypto back? Maybe too early to say for sure but Bitcoin is making its way back onto our radar and if the Winklevoss Twins are anything to go by Bitcoin is Gold 2.0?

CME CF Bitcoin GT247Source - Bloomberg


Bitcoin is living up to its reputation of being an extremely volatile instrument. We have come to see yet again in the wild price swings of late. Bitcoin has gained over 180% YTD, which is hard to ignore, but this time around it seems investors have gotten smarter when it comes to investing in Cryptocurrencies directly.

Adoption – some of the biggest hurdles for Cryptocurrency is the broad adoption for everyday use and not to mention the legal and regulatory aspect of it all. Even with the renewed price surge, fewer people seem to care by looking at Google Trends. Other means of investing in the digital currencies have been made available, and it offers an alternative for the everyday man who wants to capitalize in this market

Technical and psychological levels – certain technical levels on Bitcoin have played a significant psychological role when it comes to the buying or selling of the Cryptocurrency. The $11809/ coin level seems to be of importance and not to forget the $10000/ coin level which acts as major support. The $12968/ coin is also to be noted as major resistance for prices moving higher.

Haven – in current market conditions, we might also use the rational that investors are using Bitcoin and other Cryptocurrencies as “Safe Havens” over Gold and Cash. I use the term “Safe Haven” very loosely as the Hacking of major Crypto exchanges is still a reality.

Why is Bitcoin rising? – I have written about this before, and the most likely reason we have seen the new uptake in Bitcoin is that there is a supply shock expected next year. The cost of mining seems to be taking its toll as the mining reward (Bitcoin) has decreased by half over the years which would lead to a shortage of the Cryptocurrency expected to come through by 2020.

The Bitcoin Chart

Technical Analysis on Bitcoin:

  • Price action has moved lower from the 12968-resistance level and might target the $10000/ coin price level once more.
  • The major trend is still to the upside for now, and the price is trading above its major Simple Moving Averages, the 200-day SMA (red line) and 50-day SMA (solid white line).
  • The relative strength index (RSI) is starting to move lower from overbought levels and will be closely watched.

XBTUSD Curncy GT247.comSource - Bloomberg


Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.