BTC/USD Technical Analysis
Bitcoin (BTC) is the most popularly traded cryptocurrency and the leader among cryptocurrencies by market cap, accounting for almost 50% of the overall market. Bitcoin is created by computers performing highly complex mathematical computations and thereby converting electricity into long strings of code that have monetary value. This computing is done in a distributed network and is called bitcoin mining.
It is most commonly traded against the US dollar, represented by the symbol BTC/USD. The Bitcoin price is usually denoted in US dollars. The cryptocurrency pair indicates how many US dollars (the quote currency) are needed to purchase one Bitcoin (the base currency). For example, if the pair is trading at $3,500, it means that it takes $3,500 US dollars to buy 1 Bitcoin.
Bitcoin (BTC, XBT) is the cryptocurrency with the largest market capitalization. At one stage, in 2017, its market cap was more than 37.5 billion dollars.
There can be no more than 21 million Bitcoins. The reason for this supply limit is the decreasing-supply algorithm that is used in the mining process. The Bitcoin mining process becomes exponentially slower as it progresses and it is estimated that the last Bitcoin will only be mined in May 2140.
BTC price could go up over time potentially on account of a reduction in Bitcoin's supply over time, depending on the level of interest it generates among individual traders as well as institutional investors. Unlike traditional finance and trading exchanges, the decentralized nature of Bitcoin's system makes transactions and trading far more affordable. The growth of digital exchanges and adoption of Bitcoin as a legitimate payment option can also drive interest in trading BTC going forward.Bitcoin Price Prediction
In January 2009, the financial world changed forever when the ‘genesis block’ of Bitcoin was mined by an anonymous person (or persons) using the pseudonym Satoshi Nakamoto. That was when the first decentralized cryptocurrency was created.
Bitcoins can be transferred between individuals’ cryptocurrency wallets or used to purchase goods or services online. Every transaction done with Bitcoin is recorded in a massive data ledger called a blockchain.
This blockchain technology upon which the whole Bitcoin system is based combines the resources of all the machines that mine bitcoins and processes transactions on the network. This decentralized, collaborated effort ensures that no central authority can completely control Bitcoin.Bitcoin Price Chart History
BTC Price Factors
Although Bitcoin is the most established cryptocurrency, it is still very young compared to fiat currencies like the US dollar and the British Pound. Because of this, events related to its development and operation have the potential to move Bitcoin’s price drastically.
Such events could include ‘hard forks’ which alter the internal structure of how Bitcoin operates. Bitcoin faces an evolving scaling issue which needs to be addressed, one way or another.
Increasing the Bitcoin block size capacity is one way to solve the serious blockchain congestion problem faced by the Bitcoin community at the moment. In order to accomplish this, a ‘hard fork’ is unavoidable though.
Global Financial Crisis
Something else that could affect the Bitcoin rate considerably, is a global financial crisis. If confidence in major central banks and governments fail, there could be a flight to safety which could boost the appeal of alternative stores of value, of which Bitcoin could be an important one.
On 5 December 2013, the People’s Bank of China stepped in and banned financial institutions on the Chinese mainland from dealing in Bitcoin. This intervention by the Chinese government caused a massive selloff, and the Bitcoin price fell by more than 50% of its value in a matter of days.
After this initial plunge, the BTC rate continued drifting lower for more than a year before it bottomed out.Bitcoin News
Trading BTC requires considerable skill and knowledge of the markets, owing to its high volatility and the unexpected way the market moves. This is the main reason why many Bitcoin traders, especially the new and inexperienced ones, depend on analysis of Bitcoin chart by professional crypto traders and Bitcoin trading directions, such as the ones we at FX Leaders offer.
Our cryptocurrencies' analysts have expertise in conducting comprehensive technical analysis of BTC chart as well as fundamental analysis before publishing trade ideas. Due to its highly volatile nature, Bitcoin is best traded with long term trades, which is why our Bitcoin predictions are both short and long term with pretty large stop loss and take profit targets, especially when compared to our forex trading signals.