Digital Currency Revolution Series: Wise for Aggressive Bitcoin Bears To Be Aware of Robust Fundamentals

BTCUSD price has been showing two-way price action, it has jumped from the lows of $3122 to the recent highs of $13,880 levels (i.e. rallies of 340% as stated in our posts). From there, the pair has tumbled back below $10k areas, tested strong supports at $9,614 levels (i.e. 7-DMAs, refer weekly plotting).

While articulating, Bitcoin price is gaining about 5.63% at its current price of $11,367, up considerably from its weekly lows of $9,614.

Technically, Gravestone doji has occurred at 10,760 level in its last week’s price action, the bearish pattern is coupled with overbought indications signaled by the momentum oscillators but the trend indicators signal further uptrend continuation. Bears are desperately tempted to snap rallies whenever BTC price spikes higher, but then, BTC price has constantly been showing uptrend ever since its inception. Hence, one should understand the long-term price action amid minor corrections.

No doubt, Bitcoin’s mounting selling pressures are prevalent over the past week and has restrained to breakout $14k mark and show significant surges, which appears to be a near-term top that may not be revisited for quite some time.

Fundamentally, the flurry of various constructive news from crypto-firms are coming, just like, the regulatory framework is getting meticulous in order to protect investors’ interests.

Apart from that, obtaining a license from CFTC for bitcoin futures trading mechanism, like, Bakkt, LedgerX, and ErisX is a boost for the industry.

Elsewhere, Prime Factor Capital has recently bagged the approval from the UK regulator the Financial Conduct Authority (FCA) to operate as a full-fledged alternative investment fund manager (AIFM).

Furthermore, the underlying technology behind Bitcoin, ‘blockchain’ which is robust. More and more blockchain projects are getting under pipeline across the industries.

To substantiate, the World Economic Forum (WEF) has recently released a white paper that describes the blockchain technology’s potential to stimulate global trade by over one trillion dollars ($1.1T). 

More number of strategic alliances are taking place, such as Ripple has recently announced a strategic partnership with money transfer giant MoneyGram.

Most importantly, Bitcoin’s competitive edge is its ‘Fixed Supply’ only. It’s a typical demand/supply equation that makes any commodity attractive. The pioneer crypto can only be mined by digital method (which is cryptography), and its supply is finite. About 21 million threshold limit is fixed for the total number of bitcoin circulation, 80% of them have already been mined with the precedence set by the inventor ‘Satoshi Nakamoto’. Hence, it’s quite natural that the price of bitcoin is inversely proportional to its supply when demand is mounting.

If plot the monthly chart, the uptrend of BTCUSD resumed and hits fresh 2019-highs after bullish engulfing patterns, while both leading and lagging indicators are in tandem with these upswings.

Currency Strength Index: FxWirePro's hourly BTC spot index is flashing at 98 levels (which is highly bullish), hourly USD spot index was at -25 (mildly bearish) while articulating at (10:50 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex