Bitcoin Trend / 11-05-2017

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Bitcoin managed to touch our main waited target at 1785.00, which meets the bullish channel's resistance that appears on chart, and according to the trading rules inside the channels, the price will face potential negative pressure that might push the price to test the mentioned channel's support around 1630.00.

The bulish bias will be suggested in the upcoming sessions, noting that the overall trend still bullish, and breaching 1805.00 level will stop the expected decline and push the price to continue the main bullish trend that its next target located at 1900.00.

Expected trading range for today is between 1630.00 support and 1900.00 resistance
Expected trend for today: Bulish

A lot of bitcoin’s upward move is being fueled by the massive appreciation of the so-called “altcoins” — smaller bitcoin rivals such as Litecoin and Ripple. These altcoins are mostly denominated in bitcoin, meaning investors who wish to buy them can only do so using bitcoin. These alternative currencies have surged more than 600% in the space of two months, from $3 billion in early March to $23.5 billion currently.

This leaves bitcoin highly vulnerable to the individual trajectories of its smaller rivals.

There are also fears that the huge run-up could be as a result of manipulation by wealthy traders. In the current unregulated environment, it’s relatively easy for traders with large reservoirs of cryptocurrencies to use their heft in the marketplace to move prices to their advantage.

But ultimately the biggest danger to the rally could be if bitcoin and other cryptocurrencies fail to gain traction as expected.

It will take more than just Japan to truly open up the cryptocurrency space. Virtually nothing has changed since SEC rejected the first proposal for a bitcoin ETF, and it’s hard to see it suddenly changing its mind.

This rally might still have legs to run, but another negative SEC ruling would almost certainly bring the cryptocurrency party to a dreadful end.

Thanks For Reading,
Samer