BitcoinLong
BTC to 500 before end of 2014
Squeeze momentum indicator shows that momentum for Bitcoin is finally not being squeezed anymore. The CCI has been trending up since August
The reason I believe Bitcoin price rally happened this week is due to a lack of volume due to institutional miners holding out for higher prices. Since Bitcoin has been falling in value for a while now, and the mining difficulty going up, Bitcoin mining has become very unprofitable for the retail investor. As a result, the mining difficulty has not gone up significantly for a while due to a fall in mining investments. Recently there was a 9% increase in the mining difficulty. If you consider that the last low was $317, 9% would represent a price of $345.53. That is uncannily close to the current price of $348.87. If BTC crosses it 25 Day MA, I believe we will see it move up to its 50 Day MA (around $368), then another wave up to $400. From there, a recovery to $500 is not an unreasonable price target. That would take us back to where support was in August. Think about it fundamentally. Bitcoin's come from mining. Mining needs to be profitable. Profitable Bitcoin mining drives more investments. Bitcoin mining profitability and squeeze's in momentum with a squeeze in hashing power on the network can be attributed to one of the reasons why this weeks 9% increase in difficulty caused 9%+ price rally.
Constructive Criticism to my posts are always welcome. I look forward to your input and ideas.
The reason I believe Bitcoin price rally happened this week is due to a lack of volume due to institutional miners holding out for higher prices. Since Bitcoin has been falling in value for a while now, and the mining difficulty going up, Bitcoin mining has become very unprofitable for the retail investor. As a result, the mining difficulty has not gone up significantly for a while due to a fall in mining investments. Recently there was a 9% increase in the mining difficulty. If you consider that the last low was $317, 9% would represent a price of $345.53. That is uncannily close to the current price of $348.87. If BTC crosses it 25 Day MA, I believe we will see it move up to its 50 Day MA (around $368), then another wave up to $400. From there, a recovery to $500 is not an unreasonable price target. That would take us back to where support was in August. Think about it fundamentally. Bitcoin's come from mining. Mining needs to be profitable. Profitable Bitcoin mining drives more investments. Bitcoin mining profitability and squeeze's in momentum with a squeeze in hashing power on the network can be attributed to one of the reasons why this weeks 9% increase in difficulty caused 9%+ price rally.
Constructive Criticism to my posts are always welcome. I look forward to your input and ideas.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.