Bitcoin analysis for 29/06/2018

Robert Shiller, Nobel laureate, currently a professor of economics at Yale, described in an interview for financial media that Bitcoin is not just a cryptocurrency, a means of payment and an investment, but has also become a social movement: "it's a social movement. It is an epidemic of enthusiasm. It's a speculative bubble. Which does not mean that it will drop to zero".

Shiller, recognizing that there is some "impressive cryptographic theory" coming from the crypto industry's IT specialists, argued that these innovations attract disproportionate attention, mainly due to the investors' excitement at quick enrichment:

Cryptocurrency status, according to Shiller, does not threaten their ability to recycle multiple times, even when the bubble temporarily breaks, referring to the 87% drop in Bitcoin in November 2013 and its many infamous ups and downs.

Therefore, he suggested that Bitcoin, as an extraordinary social phenomenon, remains with "high immunity", regardless of what can be compared with "classic" speculative bubbles. In fact, Bitcoin still enjoys its "afterlife", even though many of its opponents have repeatedly proclaimed the "death" of cryptocurrencies.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has tested the previous bottom at the level of $5,742 and bounced a little towards the level of $5,900. Nevertheless, the bears still have the control over the market and it looks like they will push the price lower towards the level of $5,627. Please notice, that there is a clear and visible bullish divergence between the price and the momentum oscillator so the down move rage is limited.

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