Bitcoin price was sold down strongly in the last wave of correction prior to the advance on $300. Bitcoin value received a boost from unexpected quarters when it was revealed that the Fed and IBM want to "copy" the Bitcoin concept. This analysis is provided…
Bitcoin price was sold down strongly in the last wave of correction prior to the advance on $300. Bitcoin value received a boost from unexpected quarters when it was revealed that the Fed and IBM want to “copy” the Bitcoin concept.
From the analysis pages of xbt.social, earlier today:
Price is advancing from today’s low and has made a higher low as it trades close to an ascending 20MA in the 15-minute chart.
The price action is behaving in keeping with a recovery after a corrective low. Another wave down is ruled out by the wave count provided – that the current price action and massive indicator divergence confirms.
Price should slowly push higher and will probably continue consolidation until a signal for advance shows in both the 15-minute and 1-hour charts.
The grapevine has it that IBM and the Fed are “discussing” the matter of creating a national currency based on Bitcoin. The news will be framed, by the mainstream media, in all the piety and reverence it shows when reporting about central banking and multinational corporations. Yet, the kernel of the story will be the “fringey” Bitcoin – now suddenly acknowledged as a concept worth emulating – by a tech giant and the only superpower’s central bank.
The shot in the arm for Bitcoin and its Blockchain technology will generate a lot of perceived credibility in the mainstream. Of course, IBM and the Fed’s efforts are misguided because they will seek to centralize (i.e. stamp their authority on) their “official” product, and that is exactly what the Blockchain destroys: the need for a Fed, centralized authority and “trusted” currency. The dynamic is similar to the media monopolies saying “Let’s create our ‘own’ charged-for version of BitTorrent. We can sell our movies and music via P2P!” Yes, some citizens will naively fall for the ploy, but the majority of consumers will just continue using the Open Source version and enjoy “free” media.
Bitcoin price, today, made a last test of the lower end of its consolidation range between $300 and $290 (1860 – 1800 CNY). The next target is $300 and if the market can find its stones this weekend, we may start next week in a new trading range.
Bitfinex order depth and buy / sell metrics tell the story of the past 24 hours:
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The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: January 25, 2020 10:10 PM UTC