Bitcoin Price Defends $8K But Pullback Still in Play

Bitcoin (BTC) remains on the hunt for a major bullish breakout after bouncing back from an overnight dip. Prices hit a four-day low of $7,823 yesterday reportedly due to whale dumping over $50 million-worth of the cryptocurrency in one Bitfinex trade. The news that New York’s attorney general is taking a closer look at major cryptocurrency exchanges operating in the state may also have dampened the bull mood. The sudden price drop raised the possibility that the rally from the April 1 low of $6,425 had run out of steam.…

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Support Forming? Why $7.9K Is Bitcoin’s New Price to Watch

Bitcoin remains in a bullish territory for now and is looking at further gains, though a pullback is possible if support at $7,900 is breached, according to technical studies. The cryptocurrency’s first attempt to scale the long-term descending trendline (drawn from the Dec. 17 high and Jan. 6 high) failed on Monday and prices fell below $8,000 as expected at 12:00 UTC. It’s worth noting that the Bollinger bands (seen on the chart below) show the volatility dropped after BTC dipped below the psychological mark, likely signaling indecision among the…

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Economists Explore Bitcoin’s ‘Equilibrium Price’ in New Paper

Two economists have developed a model for pricing bitcoin and other assets in decentralized financial networks. Emiliano Pagnotta and Andrea Buraschi, professors of finance at Imperial College Business School in London, have proposed a theoretical structure for networks based on proof of work, which include bitcoin and ethereum. Their paper is dated March 21 of this year. Their analysis focuses on two main variables: the number of users – who represent the demand side – and the hash rate provided by miners, who represent the supply side. The authors point out…

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Resistance Ahead: Bitcoin Bulls Must Break $8,500

A move above resistance at $8,500 would provide confirmation bitcoin’s bear market has ended, the technical charts indicate. Over the weekend, the cryptocurrency clocked a three-week high of $8,458 on Bitfinex, adding credence to the short-term bull reversal confirmed last Thursday. Further, the 30 percent rally from $6,425 (April 1 low) proved that the much-feared “death cross” indicator was in fact a bear trap. Still, the job is only part done, as bitcoin (BTC) has yet to violate the descending trendline established since Dec. 17. Daily chart As seen in the…

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HODL On: In Defense of Bitcoin’s Best Strategy

Steven Hopkins is chief operating officer and general counsel of Medici Ventures, an Overstock.com subsidiary focused on the advancement of blockchain technology. In 1987’s Black Monday stock market crash, Sam Walton, the world’s richest man, lost more than half a billion dollars in a few hours. When reached for comment, Walton said, “It’s paper anyway. As far as I’m concerned we’re focusing totally on the company doing well and taking care of our customers.” He didn’t care about dollars; he cared about his asset Wal-Mart, and he still owned that.…

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Above $8K: Bitcoin Aims Higher After Price Breakout

Bitcoin (BTC) clocked a 2.5-week high of $8,225 on Bitfinex earlier today and could soon scale the $8,500 mark, the technical charts indicate. Prices jumped close to 14 percent on Thursday and moved above the $8,000 mark for the first time since March, according to Bitfinex. The sharp rally was reportedly fueled by the unwinding of the short trades (also known as short liquidation). Moreover, BTC margin shorts (sell BTC trades) on Bitfinex stood well above December highs. As such, there was always a risk of short liquidation and bitcoin…

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Bitcoin Breakout: Price Jumps $1K in 60 Minutes

Bitcoin rallied over $1,000 in an hour this morning, having spent a better part of the last two weeks trading sideways in a narrow price range. The cryptocurrency clocked a two-week high of $8,055 soon before press time and is currently trading at $7,850, according to CoinDesk’s Bitcoin Price Index. The move marks a 13 percent gain from the previous day’s close of $6,939. It appears short liquidation or unwinding of short (sell) BTC trades has played a big role in the sudden rally, according to some sources. The cryptocurrency…

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$7.5K Ahead? Bitcoin Price Charts Hint at Bull Move

The stagnant bitcoin charts could spring back to life in the next 24 hours, with a bullish move possibly on the cards. The cryptocurrency has been moving in a more or less sideways manner for over a week now and – currently trading at $6,848 on Bitfinex – is largely unchanged on a 24-hour basis. However, the price range continues to narrow on a daily basis (as seen on the chart below) and a breakout appears to be imminent. Daily chart The above chart (prices as per Bitfinex) shows: Falling wedge,…

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A Q2 Price Boost? History Is On Bitcoin’s Side

The second quarter of 2018 may bring some respite for beleaguered bitcoin (BTC) bulls. The world’s largest cryptocurrency by market valuation seems to have found a bottom around the $6,500 mark, having dropped 50 percent in the first quarter – notably, the worst Q1 performance on record. Overall, its safe to say bulls have been struggling to find their feet as indicated by stagnant prices and a narrowing price range. Yet, speculation is doing the rounds that big Wall Street names (such as Soros and Rockefeller) are set to enter the crypto space.…

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Trapped Below $7K: Is Bitcoin Prepping for a Big Breakout?

Bitcoin (BTC) has spent a better part of the last 24 hours trading a tight range around $6,800. In fact, the cryptocurrency has been restricted to an increasingly narrow price range for almost a week now, with neither the bulls nor the bears able to force a big move in either direction. As of writing, BTC is changing hands at $6,840 on Bitfinex. However, while the sideways trading is somewhat dull for observers and traders alike, the market may be about to become more exciting. According to technical theory, the…

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