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Is the Bitcoin Price in for a Massive Bull Run?

Source: bitcoin

bitcoin price

Following a heavy drop, the bitcoin price showed signs of recovery last week when it ascended to $590. Now, bitcoin has dropped again and is hovering around $580 at press time.

Also read: Silk Road Auction Could Help Bitcoin Price Bounce Back

Bitcoin Price Still Bullish?

Bitcoin has likely found a comfortable place to reside for the time being. All that climbing and falling is sure to take a toll on one’s energy, and bitcoin is no exception. After nearly two weeks, the price seems to be shifting only slightly within the range of $580 and $590.

One source explains that bitcoin is now competing against the U.S. dollar, which seems to be doing better in the value department. The platform states:

“US equities ended in the green once more, renewing demand for the dollar versus other assets such as bitcoin. Economic reports from the US have been surpassing expectation these days, keeping hopes up for a Fed interest rate hike in September or December… If the actual readings beat expectations, the US dollar could gain more traction in its climb.”

With a spike in the dollar’s value, we’re likely to see potential rises in additional currencies such as the Chinese yuan and Japanese yen. When fiats take off, bitcoin and related altcoins usually stumble.

However, other analysts are more optimistic. Bitcoinist.net explains that the price is in for a steady rise in the coming months, and traders should expect an oncoming bull-run:

“The bitcoin price is beginning a reversal pattern to the $700 level, where a congestion area should reinforce quotes for another climb to $820. Now at the $580 support level, prices are starting to form an upward reversal pattern, which will allow pull back to $700… The current trading box we are considering was built according to the ended rounded bottom first pattern with the 28 percent and 62 percent Fibonacci retracement theory – it seems to be working so far. The next stage could be an upward rally into the new technical cycle. Now, after a plunge to the support at $580-$600, a new bullish consensus is expected to provide the concurrent elements that ensure a change in the current trend.”

Despite thoughts of a rise, the same analyst suggests that traders wait to take action until the price hits $600:

“Average traders should wait for quotes to reach $600 before buying. Doing so will allow them to take advantage of the initial rebound to $700, which should lead into a new bull cycle to $820, where the box resistance is still waiting on the quotes.”

Is bitcoin in for a massive spike? Post your thoughts and comments below!


Images courtesy of Wikimedia Commons, Bitcoin.com.

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Is the Bitcoin Price in for a Massive Bull Run?

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Zimbabwe Banks Lack Cash Reserves To Honor Customer Withdrawals

Source: bitcoin

Bitcoinist_Zimbabwe

The country of Zimbabwe is not associated with financial stability by any means, yet things have taken a turn for the worse. Now that cash supplies are nearly non-existent, banks have to turn customers away. An excellent breeding ground for Bitcoin adoption, or will a different solution save the country?

Also read: Industry Report: Dr. Satoshi, BitPay Launches Bitcoin Debit Card

Zimbabwe Runs Out Cash

Even though various countries around the world are contemplating to go cashless in the future, running out of cash is not what most of them have envisioned. Unfortunately for Zimbabwe, that is exactly what happened. Not that this is a complete surprise, mind you, as the country has been using various foreign currencies since the collapse of their own fiat currency in 2009.

Especially the US Dollar has been a focal point for Zimbabwe, but due to their slump in global commodity prices and lower exports, not enough funds is coming in. As a result, local banks have started to turn away customers looking to withdraw cash, simply because they have no reserves to meet the demand.

For the time being, the central bank is looking to print bond notes, which would be tied to the US Dollar value kept in the country’s reserves. Moreover, withdrawals will be limited to US$1,000 per day, and people are advised to use either Euros or South African rand. That latter is not a viable option either, though, considering the rand lost 20% of its value compared to the US Dollar in the past twelve months.

This goes to show that central banks cannot continue to create money out of thin air to solve their financial problems. Yet that is exactly what the Zimbabwe central bank is doing, as they issue a brand new currency to temporarily alleviate some of the financial pressure. At the same time, they limit how much of it can be used by consumers on a daily basis, though, which will not help stabilize the economy in the long run.

Bitcoin could resolve these financial issues as well, although there is no guarantee consumers and enterprises see the value of this cryptocurrency just yet. Solving a financial crisis does not happen overnight, but Bitcoin is ready to be embraced by Zimbabwe if they want to offer consumers a financial ecosystem that is not bogged down by central bank dominance.

What are your thoughts on the situation in Zimbabwe? Let us know in the comments below!

Source: CNN Money

Images courtesy of Shutterstock, Wikipedia

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Zimbabwe Banks Lack Cash Reserves To Honor Customer Withdrawals

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Bitcoin Remains Stable As South African Rand Loses Value

Source: bitcoin

Bitcoin Remains Stable As South African Rand Loses Value

The world economy is still feeling the effects of turmoil originating from China, where the markets are still in chaos and investors are looking to liquidate assets at an alarming rate. As a result of this panic, other currencies are being affected as well, as it all comes down to finding a market with some liquidity. South Africa’s rand felt the brunt of that effect, as the currency lost a fair bit of value against the US Dollar. Bitcoin, on the other hand, kept a steady course.

Also read: The Bitcoin Foundation Unveils 2016 Plan, Might Shut Down Instead

Chinese Turmoil Causes Rand Drop

Similar to nearly every fiat currency in the world, the South African rand has its value tied with the US Dollar. Considering how the US Dollar is the main trading currency for every other currency out there, this is also the one market where traders should be able to find some type of liquidity at all times.

Speaking of trading liquidity, this will not be provided by the Chinese markets anytime soon. With the stock markets being closed early twice last week, and further devaluing of the Yuan being very likely, it will be hard to get rid of those assets at a decent price. Investors and traders are forced to liquidate some of their other assets to make up for those losses.

By going after the South African rand, investors active in the trading ecosystem exposed yet another fatal flaw in our financial world: currencies can lose up to 10% of their value in a heartbeat. Not because the rand is a weak currency, by any means, but simply because a group of investors decided to liquidate their holdings in favor of the US Dollar.

In fact, it looks like Japanese investors are responsible for a large part of this trend, as they have to exchange their rand for US Dollars and then convert those to Japanese yen. Regardless of who is responsible, this is not a good sign for the South African economy by any means, as losing 10% overnight is an incredibly steep margin.

As one would come to expect from such a price crash, the Japanese yen saw a major surge in value, and the US Dollar lost some of its momentum on the charts. However, this does not affect the US Dollar as badly as it could have, considering how it is still on the right track to reach parity with the Euro at some point.

Bitcoin Holds Its Ground Despite Worldwide Fiat Woes

These days, hardly anyone will be surprised to hear none of these fiat currency woes are affecting the Bitcoin price all that much. While there is a minor downward trend on the charts during the morning hours, the popular digital currency is firmly holding ground around the US$440 mark.

Slowly but surely, investors are starting to see the real value of Bitcoin, rather than looking at things from a speculative angle. Bitcoin has proven to be far more stable than any currency in existence as of late, and that trend looks to continue for the foreseeable future.

What are your thoughts on the South African rand value drop? Which currency will be next in line for a downward trend? Let us know in the comments below!

Source: Reuters

Images courtesy of Shutterstock, Lipstick Alley

The post Bitcoin Remains Stable As South African Rand Loses Value appeared first on Bitcoinist.net.

Bitcoin Remains Stable As South African Rand Loses Value

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