It appears that there is still trouble in paradise for Bitcoin. The much debated blog post on Medium published by former Google developer Mike Hearn at the end of last week has raised a lot of dust this week as well. Hearn walked away from the Bitcoin market and sold all his Bitcoins, but is this digital currency indeed dead or doomed to fail in the near future?
Objectively speaking, we can all see that the Bitcoin market is fair from being dead. As pointed out on Twitter by Elizabeth Stark, people enjoy declaring that Bitcoin is dead; it was declared dead twice in 2016 already. Moreover, this appears to be the 90th death of Bitcoin since it was first introduced. Despite the fact that the Bitcoin price is still low, in general, it’s still holding on and it might increase by the end of this week.
The Deeper Meaning behind Hearn’s Post; Ethereum Rises
The blog post of Mike Hearn raises some important points about Bitcoin, but how much they will affect this digital currency in future, remains to be seen. Hearn pointed out that the internal politics in the Bitcoin community are the biggest problem and they will bring down the virtual currency. Most importantly, the block size debate needs to be sorted out as soon as possible and things need to change also regarding mining centralization.
Furthermore in the news, as many people used Bitcoin as a more safe currency than Yuan, it looks like due to its plunge, people are going for Ethereum. The price of this crypto-currency is putting on 20 percent rising 200 percent in volume compared to its recent average of more than 4,000 BTC.
Daily Technical Analysis – Strong Sell
If you look at our price chart, you will notice that the price of Bitcoin is still under $400. Moreover, it’s even lower than the lowest value of last week. In particular, at the start of the day the average value was $380.86 and by early in the morning it dropped again to $376.42. However, as the day kicked off the price started to climb up and its current value is $388.08. All in all, we can conclude that the day’s range in Bitcoin price is between $374.77 and $388.15.
Furthermore, today’s volume is around 8k; its current value being 8,064. The volatility is way over 50% and set at 59.89%. In addition, the market capitalization of Bitcoin is $5,825,958,296 which is still strong compared to the other crypto-currencies.
On the other hand, the technical indicators and moving averages of Bitcoin are far from bright. The daily technical analysis suggests a strong sell. From the indicators, the value of the RSI is 38.612, while the MACD value is -9.180. Furthermore, the Bull/Bear Power is -58.9900. Therefore, there is a strong sell here. The moving averages also suggest a sell. Whether or not this trend will continue in the future days it’s up to be seen.