2018-7-16 19:20 |
BlackRock and US Congress up Vote Boosting Bitcoin Prices
It couldn’t be a good time to trade or even hold Bitcoin. Not only does it appear to be bottoming out but the mere fact that BlackRock is tinkering about it legitimizes this asset. Currently, BlackRock have a team researching about its viability and while they do so, the US Congress is caving in on their stand and sees a future dominated by cryptocurrencies facilitating payments. Cumulatively, this can be interpreted as good news and probably a shot in the arm for cryptocurrencies including Bitcoin.
From the NewsThe way influencers/companies are shifting their previous stands on cryptocurrencies and Bitcoin is interesting to say the least. First we had JP Morgan’s Jamie Dimon saying Bitcoin is “stupid” and “a Ponzi scheme” and later BlackRock CEO Larry Fink saying “Bitcoin is an index that is used for money laundering”. Then, the cryptocurrency market was trending at their all time highs at around $15,000 and he took the chance to practically demonstrate how “the demand for money laundering was”.
Over the weekend though, it was announced that BlackRock was exploring cryptocurrencies as Bitcoin and its underlying technology. In place is a dedicated group, sources say, that are thoroughly investigating the currency, the technology, volatility and even what their competitors are doing in matters cryptocurrencies.
This new development is in line with their February report where BlackRock forecasted that as the crypto market matures, payment in cryptocurrencies as Bitcoin would take root. Now, should the team find some positivity syncing with investors interests then the investment behemoth would consider investing in Bitcoin Futures.
Overly, this news alone is good but will this be counterproductive for Bitcoin prices? Remember, a study posted at the San Francisco Reserve website highlighted how the launch of Bitcoin Futures early this year by the Chicago Mercantile Exchange and the CBoE weighed down prices.
What we know for sure is that such large institutional investment firms as BlackRock with trillions of dollars in investment is positive for Bitcoin. It legitimizes the digital asset in the process giving it value and spurring further gains.
Bitcoin (BTC) Technical Analysis Weekly Chart Click here to see the full size Bitcoin BTC Weekly Chart July 16Technically, week ending June 24 is important in our analysis. That week’s high low still defines recent price oscillation despite the apparent resuscitations.
While $6,000 remains a key support line, we must see strong upswings as far as price movement is concerned before we move all in buying Bitcoin on dips. Remember, prices are moving within a strong two month bear trend with reliable buy triggers at $7,000 which doubles up as April lows.
Daily Chart Click here to see the full size Bitcoin BTC Daily Chart July 16Like before, the influence and importance of $6,000 is clear. Not only is it 2018 lows but it also doubles up as the main support line and a sell trigger should we see prices edge below it.
As it stands, buyers are pushing prices up while still moving horizontally within a $600 trade range with resistance at $6,800-$7,000. In my view, I recommend staying neutral with a bearish skew waiting for BTC up-thrusts above $7,000 triggering buys like what happened on July 7.
That development shall cancel our bear projection and probably usher in buy waves.
Ethereum, XRP, EOS, Bitcoin Cash and Monero Technical Analysis July 16
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
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