Bitcoin analysis for 08/09/2017:
Many Bitcoin enthusiasts are trying to anticipate a realistic projection for the Bitcoin price over the next few years. There are some analysis that expect a rational $15,000-$20,000 value to extraordinary projections of $1 mln per Bitcoin. For now, the fact is that after activation of the SegWit protocol which includes the Lightning Network technology, the whole Bitcoin market capitalization is slowly approaching $80 bln, which makes the Bitcoin market alone worth a half of this sum. Moreover, the Bitcoin daily transactions are growing steadily as well (about 400,000 BTC per day according to Coinmarketcap) and 1,728 new Bitcoins are created through mining each day. If by the next halving the number of mined Bitcoins will drop to 864 and then in 2024 to 432, around the year of 2032 99% of all Bitcoins will be mined already. This situation will likely make the investors realize, that they are missing out the opportunity to mine the remaining 1.6% of all available Bitcoins, and then the prices should climb accordingly. With the given pace of rise, the target of $20,000 by 2020 is very likely to be hit.
Let's now take a look at the Bitcoin technical picture at the H1 time frame. The price is currently trading inside of the gray rectangle supply zone, but it was declined from this zone twice already. So, will the third time be lucky? The clear bearish divergence between the price and momentum oscillator supports the downward view, but any breakout above the level of $4,691 will likely indicate a further move towards the swing high at the level of $4,970. On the other hand, according to the Elliott Wave Principle, the wave (b) correction might get more complex and time-consuming before the wave (c) to the downside unfolds. The bigger time frame trend remains bullish.
