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Here’s One Data Point That Suggests Bitcoin (BTC) Has Bottomed Out

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Here is an interesting one. Take a look at the price of bitcoin as illustrated on the bitcoin price chart (taken from CoinMarketCap) below.

BTC Chart

BTC Chart

The chart shows the action that has been covered across so many of the major news media outlets over the last six weeks or so, with bitcoin sliding from highs at more than $20,000 a piece to current levels in and around $8000.

The 60% decline is one that has come as painful for many longer-term holders but the pain that said holders feel is no doubt insignificant as compares to that felt by anybody that picked up an exposure in or around mid December pricing and have subsequently ridden price down throughout the first half of the first quarter of this year.

Anyway, now take a look at the second chart, this one taken from Google’s Trends platform.

Google Trends Bitcoin

Google Trends Bitcoin

The chart illustrates interest over time in bitcoin, with the metric based on the frequency and volume with which people search for it through Google’s search engine. Official numbers suggest that around 60% of search traffic goes through Google but, in reality, it’s probably considerably higher than that.

Anyway, whatever the numbers, interest over time was at 12 (out of a possible 100) back during the first week of October. By the week of December 17, this had risen to 100 (so, representative of peak interest). That suggests an increase in the wider market attention of around 700% across what is essentially a fraction of bitcoin’s lifespan.

Almost immediately subsequent to this interest peaking, however, search volume fell off a cliff and currently sits at around 49, meaning we have seen a decline of around 100% from December.

So why is any of this important?

Well, it’s reasonable to assume that the uptick in attention and interest during the final quarter of last year is comprised primarily of mainstream attention as opposed to those already familiar with the space increasing the amount of times they type bitcoin and its related terms into Google.

In turn, it’s equally reasonable to assume that the subsequent downturn in interest during the first couple of months of this year is the removal of this same portion of global search volume from the picture.

So, taking these two assumptions into consideration, we can make a further assumption based on price. Specifically, that the portion of the inflowing volume that resulted in the bitcoin price running up to $20,000 and above derived primarily from the increase in mainstream speculation (as opposed to existing holders adding to their positions), at least for the main part.

What does this all mean?

We think that, at current prices, and taking into consideration the recent slight upturn we have seen in the markets, the portion of capital that flowed into bitcoin and pushed price up has now flowed out of the market, meaning balance is restored in the sense that the vast majority of the capital that now supports price derives from long-term holders as opposed to fly-by-night speculators.

In turn, we think that this level represents the level at which it’s perfectly reasonable to assume price should start turning around.

It’s unlikely that we’re going to see a run towards $20,000 short-term since that would mean the volume that entered (and then exited again) entering the market once more. However, within a six-month period, say, the traction that pushed bitcoin towards current levels during the first 6 to 8 months of 2017 could easily push BTC towards $15,000 plus between now and September 2018.

We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


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Bitcoin

Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?

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Currently, China is leading in Bitcoin mining industry by far, second to none for bitcoin mining power. Literally, it’s contributing over 70% of the network’s hash rate (a term that is used in describing the total processing power of a blockchain network). But how Ripple fits in here and what it has to do with that? We’ll talk about that a bit later below, let’s cover some in-depth facts about China’s dominance over Bitcoin first.

It’s a near-complete dominance by China on the BTC mining grid that has made it responsible for mining a majority of circulating bitcoins. A Beijing-based company, Bitmain Technologies, is highly responsible for extracting the significant part – more than half of the globe’s bitcoin, and alone, it has approached 50% of the total hash rate more than once.

The fact that China is controlling a majority of Bitcoin hash rate, clearly tells that it has the power of manipulating or merely destroy the bitcoin network if it gets enough support should it decide to take such a move. Therefore, this has led to serious concerns among countries including the US that China might get an edge in this cryptocurrency industry and possibly becoming a potential threat.

China is the biggest manufacturer of Bitcoin as well as cryptocurrency mining equipment. The reason behind the massive growth of mining farms in the country is because of cheap electricity bills.

Furthermore, the country has adopted several…

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Bitcoin

Bitcoin bull run momentum builds up; price breakout imminent

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There is no doubt that Bitcoin is the most significant and largest success story in the cryptocurrency sphere despite the volatilities the powerful digital coin has been experiencing this year. 2018 has been a rough year for major cryptocurrencies including Bitcoin that has seen the prices of the virtual currency depreciate from a high of 20,000 US dollars in January 2018, to a low of 6,400 US dollars in October 2018.

Regardless of not much powerful performance, Bitcoin still maintains being the most sought-after virtual currency in the market. In totality, Bitcoin had a price appreciation of about 150,000 percent from its listing in July 2010 to the present day.

Bitcoins Brief Historical Evolution

In its lifetime so far, the number one ranked cryptocurrency has had its fair share of mixed bear runs, and bull runs throughout the years with the longest bear run being experienced in March 2014 and March 2015. However, in its history of up and down price progression throughout the years, gains have outweighed losses and Bitcoin has managed to record impressive highs of 20,000 US dollars as at December 2017.

As for this year, 2018 has been a nightmare for Bitcoin as its bullish gains have been low, recording shorter runs that have given rise to general losses attracting undue media attention from the general public and governments.

The Future of Bitcoin by Market Indicators

According to technical perspectives regarding Bitcoin price movements…

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Bitcoin

Institutional investment presumption to send ETH, XRP, and Bitcoin high

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These days it points out that institutional investors slowly are gaining interest in the cryptocurrency domain. Practically, a real-world working model will attract institutional investors automatically from all over the globe. They will look for an opportunity to invest in the cryptocurrency industry if not necessarily in coins such as Bitcoin, Ripple’s XRP or Ethereum, and it seems like that moment is already at hand.

State of the Market

The past 24 hours have been stable for the crypto market as the entire market has seen steadiness in their trade. For that reason, the general market value has been lifted to $210.6 billion.

The state of the market has seen the price of Bitcoin go up by 0.7% to the $6,537 lifting its market cap to $113.2 billion. Bitcoin cash has stayed stable too at $466 representing a slight drop of 0.56% and the market cap being $7.7 billion.

Also, Ethereum price dropped 0.59% to $205.87 giving it a market cap of $21.1 billion, and as for Ripple (XRP), a similar trend was experienced whereby it dropped by 0.15% to stand just above 46 U.S cents making its market cap to stand at $18.5 billion.

The stability in the cryptocurrencies is a positive gain as that increases hopes and chances for the institutional investments.

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