Here is a non biased explanation of where Bitcoin price is at, and where Blockchains future resides.
Firstly, it is important to understand that Bitcoin is young, and as a result the majority of its circulating supply is owned by a small minority of early adopters. In fact 20% of Bitcoin is held in less than 150 wallets, and 40% of Bitcoin is held in less than 1600 wallets. These wallet holders are called whales. (see the link below)
What does this mean?
The price of Bitcoin is easily manipulated by whales. Whales will simply buy Bitcoin to push it to extreme highs like the 2017 high of $20,000 USD, they will then short Bitcoin and sell their positions to achieve all time lows such as the $4,000 USD position we are at now.
However as we see more mass adoption, regulation and ultimately cryptocurrency becomes more institutionalised, the whales struggle to maintain their dominance of wealth and naturally the extreme highs and lows will reduce.
In between all of this, we have a fundamental value that Bitcoin holds. This fundamental value comes from various projects in the cryptocurrency market such as Ripple, Ethereum, Litecoin, Loki and Bitcoin itself. Each one of these projects is adopting blockchain technology and hence they are in the cryptography industry. If you don’t already understand what blockchain technology is or how it will revolutionise the supply chain, banking and privacy industries, then send us and email and we will educate you.
What does this look like on the price charts?
Below I have provided some technical analysis to help you distinguish between price manipulation and fundamental value. The green channel represents the fundamental value of blockchain technology, and the candle sticks that exit this channel is the result of price manipulation.
What is MiningStore’s price prediction on Bitcoin?
Bitcoin may test the $2800 -$3300 USD mark, and at or before this point we will see the fundamental value of Blockchain technology quickly returning Bitcoin to $6000 USD territory. Outside of the fundamental value of Bitcoin it is also possible that the whales will drive the price of Bitcoin to extreme highs of $20-30,000 USD again.
In the long run we see Bitcoin following the green trend line that is highlighted in the chart below.
The vertical line on the 24th of November signals the date that the Bakkt exchange has postponed their Bitcoin futures platform to be launched. The release of this platform could be the start of the next bull run as it is heavily anticipated news and will also bring Blockchain one step closer to institutionalisation. (See link below)