The analyst community in the form of large investment banks continues to view Bitcoin as a bubble, with some suggesting that it has burst. This, however, has not stopped the flow of talent from Wall Street to the Crypto universe.
Additionally, China, which has banned trading in cryptocurrencies is zooming ahead with the development of Blockchain technology. In a recent move, the Chinese government has launched a $1.6 billion Blockchain fund to support more projects and startups.
The European Commission has asked Europe to work towards playing a leading role in the field of Blockchain technology.
Japan leads the world in trading of cryptocurrencies. The Japanese Cryptocurrency Business Association (JCBA) believes that there are 3.5 million active traders in digital currencies.
Most developed nations are moving towards adopting Blockchain technology, which will be positive for cryptocurrencies in the long-term. The positives far outweigh the short-term risks.
Adrian Lai, founding partner of Hong Kong-based crypto investment firm Orichal Partners, believes that after the correction, 2018 will attract institutional investors, which will result in an increase in trading volume.
The second quarter of the year has traditionally seen a Bitcoin rally, evidenced by both 2016 and 2017. Will we see a repeat again this year? Let’s see what the charts forecast.
Bitcoin has formed a descending triangle pattern in the short term, which will complete on a breakdown below $6,757.26. The previous two attempts by the bears to break this support failed on April 01 and April 06.
The bearish pattern will be invalidated if prices break out of the triangle, which is close to the resistance line of the descending channel and just below the 20-day EMA. Once price breaks out of these resistances, the BTC/USD pair will turn positive and rally towards the 50-day SMA.
Traders can initiate long positions on a close above the 20-day EMA with a minimum target objective of $9,000. The initial stop loss can be kept at $6,700, which can be trailed later.
Our bullish outlook will be invalidated if the price breaks below the triangle, which can result in a slide to $5,435.66 levels.