Bitcoin analysis for 16/04/2018

After the investment mogul Tim Draper said this week that Bitcoin could make up to $ 250,000 by 2022, Brian Kelly supported this forecast in a TV interview. In response to the question about Draper's high predictions, Kelly replied that although it sounds crazy, considering that Bitcoin has grown by 4,000 percent in two years and 3,000 percent in four years, it could be a continuation of the trend. Kelly continues, noting that the growth of institutionalized money in the cryptographic sphere - Rockefeller's VC arm, Executive Goldman Sachs and Soros Fund Management - can make the cryptocurrency variability decrease, making it easier to use as real currencies and will only need four years to reach Draper's price point suggested in 2022. At the moment, the most common use of cryptocurrencies in the opinion of Brian Kelly are citizens of countries where there are no reliable governments or banking systems. Asked why someone would risk losing 20 percent or more by investing in cryptocurrencies, he replied: "Well, it's better than to lose 100 percent if your assets are taken over by a dishonest government".

The key aspect in which Bitcoin reaches $ 250,000 by 2022 or $ 25,000 by the end of 2018 is to increase the volume of transactions. Moreover, this week, Crypto Pantera Capital hedge fund also predicted that Bitcoin will reach $ 20,000 again by the end of this year, and $ 6,500 was the likely bottom.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has made a bottom of the wave (c) of the wave Y at the level of $6,400 and since then the new cycle up has developed. The recent high for this cycle was made at the level of $8,355 and was labeled as the top of the potential wave (1) or (a). Currently, the market is in the corrective cycle wave (2)/(b), so a potential test of the level of $7,500 is possible before the uptrend will resume.


The material has been provided by InstaForex Company -