Bitcoin has soared by 1372.40% this year and is attracting even more attention. One cannot predict what will exactly happen to bitcoin, though, as it is not backed by anything and does not have enough historical data, so tech analysis may work in some cases and may not in others.
The latest collapse that sent Bitcoin from the high at $19,891.99 all the way to $10,718, questions the long-term BTC rally and all this hype around it. The debate over the ‘true’ bitcoin is becoming hotter, with a lot of advocates of the more technologically advanced Bitcoin Cash.
There’s some more to it. With the great demand for bitcoin over the last 5 months, a large number of funds flowed into the market. The growing number of transactions have complicated the matters for crypto exchanges, which lead to withdrawal issues. More and more pieces of news are coming in, telling about cryptocurrency wallet malfunctions, while the users keep complaining about transaction glitches. All this is not the best news for bitcoin. Besides, BTC is becoming a synonym of speculation, which also makes some people shun it and turn to altcoins with less speculative hype and more growth potential backed by technologies.
BTC is likely to continue its current long-term trend in Q1 2018. After the correction, the price will try to reach $20,000 and then go ahead towards $25,000 or $27,000 by the middle of the year. Any predictions beyond that are pointless because of Bitcoin’s extreme volatility.
This article was written by Dmitriy Gurkovskiy, Chief Analyst at RoboForex
This article was originally posted on FX Empire
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