Bitcoin received support at 3,400 USD and appreciated by almost 1% to 3,469 USD. Yesterday, there was another significant drop in the price of the cryptocurrency, which fell below 3,400 USD, but found support in the area and appreciated amid increased interest of traders.
The price of Bitcoin moved above the 23.6% Fibo retracement rate to the latest drop from 3,560 USD to 3,344 USD. Buyers managed to raise the price above the 3,420 USD but there was strong resistance near 3,450 USD. Moreover, yesterday’s main bearish trend line was intact with a resistance of around 3,450 USD.
The resistance on the trend line coincides with a 50% Fibo retracement at the last decrease of 3,560 USD to 3,344 USD.
Therefore, the correct break above the trend line and is mandatory for further profits. The next big resistance is close to the 3,500 USD. The intermediate resistance is 3,480 USD and a 100-hour simple moving average (SMA). On the other hand, if buyers fail to gain strength above 3,450 USD and 3,480 USD, the cryptocurrency might experience a new wave of bearish sentiment.
Bitcoin’s price is close to a key resistance of 3,450 USD. On the downside, the initial support is 3,375 USD, below which the price could revise the 3,340 USD level, followed by testing 3,300 USD.
The other cryptocurrency markets are also up. Ethereum appreciated by 0.5%, while Ripple rose by 1.15%. The biggest increase in largest cryptocurrencies was registered by TRON, which appreciated by 3.6%, as well as Pundi X, which rose by 10.5%
The total market value of the cryptocurrencies amounted to 113.25 billion USD.
Will Bitcoin climb up to 30,000 USD?
Even despite the negative trend in the Bitcoin price, still, there are analysts who consider that Bitcoin will climb up to 30,000 USD.
According to Imran Wasim, a financial analyst at AMSYS Group, the imbalance in demand and supply will help boost cryptocurrency market capitalization, resulting in a massive rise in prices.
On November 30, 2013, the cryptocurrency climbed to 1,162 USD, but unfortunately, the market suffered a deep recession where prices fell by 87% to 152 USD. The recession continued until January 14, 2015. About this period, many investors quit the crypto market, but Bitcoin returned, reaching its highest peak of 20,000 USD in December 2017.
“The price has fallen, which is fine. Much more money will go into the Bitcoin and it will rise to about 30,000-35,000 USD this year and in the next few years may reach 100,000 USD”, said Imran Wasim. “This will happen because it is a stock of value”, added he, without forecasting any specific date.
Analysts, enthusiasts, and individuals in the industry have many different opinions and predictions about the cost of Bitcoin – both in the long- and short-term.
The involvement of significant financial institutions and mature crypto products will lead to an increase in the asset price.
At this point, the Bitcoin and the cryptocurrencies will be heavily affected by speculation. Even small changes in legislation are likely to affect prices. The crypto community insists that fluctuations are normal and will have no effect on long-term developments.
The experts would prefer to make forecasts for a longer period. More frequent are forecasts that look at the future of the asset over the next 10 to 20 years. It is good to remember, especially given the current rumors that the results achieved in 2017 came in between such adjustments.
Iran plans to launch its own national cryptocurrency
Since the US sanctions continue to affect Iran economically, the Islamic state is reportedly about to announce its own national cryptocurrency.
The US sanctions restrict the abilities of Iran’s financial institutions to engage in transactions with the rest of the world. However, issuing an own cryptocurrency can mitigate some of the consequences. To further fuel the rumors, it is reported that the Iranian government expects to make a statement on the digital asset at the annual conference on electronic banking services and payments, which begins in Tehran on January 29, 2019.
According to the preliminary information, the Iranian state cryptocurrency will be launched on two steps. First will be issued a Crypto Rial to be used to make payments between Iranian commercial banks and other domestic organizations. Public access to the currency is expected to come at a later stage as it will help citizens make payments for local goods and services.
Initially, the Crypto Rial will be for internal use only. Through the use of blockchain and crypto technology to facilitate transactions, Iran will join other blockchain payment networks, which, according to many, could make the traditional SWIFT network becoming unnecessary.