Technical analysis on bitcoin price by prominent traders and analysts including Tone Vays, Squeeze and Squawker suggest that bitcoin price is on route to reach $3,000.
Currently, the cryptocurrency and bitcoin communities are anticipating increased regulation, legalization and most importantly, trading activity in Asia. Earlier this week, the Japanese government officially removed the 8 percent consumption tax on bitcoin trading and purchases and the South Korean government announced its plan and intention to legalize the bitcoin and cryptocurrency markets during 2017.
Other regions such as India, which long remained an unregulated but a potent market, is also expecting to receive practical regulatory frameworks from their local governments. As a result, trading activity within the Indian bitcoin exchange market drastically increased, as analysts including investment firm Ark Invest’s cryptocurrency lead Chris Burniske revealed in June.
On June 15, Burniske shared an informative chart which revealed that the Indian bitcoin exchange market accounted for nearly 11 percent of the Bitcoin-USD trading pair, which still remains as the largest trading pair within the global bitcoin exchange market.
Considering the recent sustainability of bitcoin’s upward momentum, RT’s financial program Keiser Report host and American producer Max Keiser further emphasized that it is possible bitcoin price may reach a new all-time high of $5,000 in the near future.
Struggle of Central Banks, Bitcoin’s Safe Haven-Like Qualities
In addition to bitcoin’s momentum and the occurence of a minor market correction which placed bitcoin price at a viable position to begin a new rally, Keiser revealed that central banks are struggling to deal with high-risk borrowers that have posed danger to the stability of the global banking and financial markets.
In an interview, Claudio Borio, the chief economist at the BIS, explained:
“Economic slack in the major economies has diminished further; in some, unemployment rates have fallen back to levels consistent with full employment. And inflation has moved closer to central bank objectives. There is tension between stock markets, which have soared, and sovereign bond yields [the interest rate on the debt], which have not risen much as economic prospects have brightened.”
Since the beginning of 2016, an increasing number of investors and traders across the world including regions such as Japan, China and the US have begun to purchase bitcoin due to its safe haven-like characteristics. It performs well amidst global financial instability and economic uncertainty.
Acknowledging bitcoin’s tendency to increase in value prior to major financial struggle, Keiser noted that an all-time high is in sight.
More to that, bitcoin and the rest of the cryptocurrency market recently went through a major market correction, during which the value of the market’s top 30 most valuable cryptocurrencies fell by around 30 percent. As it did during past bubble bursts and market corrections, bitcoin price will likely recover beyond the previous peak or all-time high, which is $3,097.
Lastly, and perhaps most importantly, the activation of a scaling solution is imminent. The Bitcoin Core development team’s Segregated Witness (Segwit) is likely to be activated in the near future, regardless of the activation mechanisms. BIP 148 and New York Agreement’s Segwit2x are the two contenders, although Segwit2x seems unlikely at this point, due to its inefficient and unrealistic update mechanism.