News Bitcoin Price Analysis: Overview
Bitcoin Price Analysis: Outlook Not as Bearish as It Seems
Much of the world has now heard about Bitcoin due to the global WanaCrypt0r 2.0 ransomware, which should continue spreading over the course of next week. The silver lining is that many people who did not know what it is or how to use it before the attack certainly do now.
Worst-case scenario for Bitcoin here would be a government crackdown on its use and distribution, which, although a low probability, is probably not a non-zero possibility considering the current administration. This would create a large down day in the market similar to when Silk Road was shut down, Mt. Gox was found to be insolvent.
The block size and scalability debate trickles on with no current end or resolution in sight. The number of unconfirmed transactions continues to rise on an upward trend, all the while miners who support Bitcoin Unlimited are mining empty or non-full blocks.
Bitcoin is losing its impact and success, which can be partially attributed to the block size and scalability in-fighting. Others, like myself, view this shift as a massive altcoin bubble. Hockey stick parabolic curves on a chart like that end with large selloff candles. There is also only one Bitcoin, with a fixed supply, competing against an infinite number of altcoins, many with pre-mined or infinite supply as well.
Because of the correction late in the week, the weekly candle was threatening a bearish close with a wick longer than the candle body, but the heavy buying on Sunday prevented the bearish close.
This weekly close alone suggests continuation over reversal or sideways movement in price. Since the beginning of the trend, duration of consolidation between large upward moves has decreased. This will eventually lead to a parabolic, euphoric, blowoff top with a massive candle wick. Until then, expect more of the same. A small correction this week would just mean an even greater chance for extended continuation.
Most of the world is now aware of Bitcoin due to the WanaCrypt0r 2.0 ransomware.
The block size and scalability debate continues with large transaction backlogs in an upward trend. Based on market capitalization, Bitcoin is currently hovering around 50 percent of the total.
Price remains in consolidation; once finished, expect a return to the status quo.