BTCS Inc (BTCS)

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Bitcoin Price May Test $425-30: Propelling Factors
Jaica Mulera in Analysis
Mar 24, 2016

Bitcoin Price May Test $425-30: Propelling Factors

Bitcoin price BTC to USD has been trading in a narrow edge. The cryptocurrency has been trading higher and has attempted to hit $420.This however has been difficult due to lower consumer confidence and lack of market conviction. Bitcoin price faced some resistance at around $420 to the upside and $400 downwards. Increased demand of this cryptocurrency might help propel prices higher towards $425.

This week, Bitcoin was selling at $421.17 which has no huge difference to the last week. This shows that no huge changes took place for the cryptocurrency. Bitcoin is known to be the largest cryptocurrency for now. This however does not mean that it does not face challenges. It does as some crypto currencies such as ethereum block chain is not giving it such an easier time. The move by the BTCS to launch platform project aimed at mining ethereum shows that ethereum blockchain is attracting some investors.

The high demand of Bitcoin has been the driving force of higher prices. More people are embracing these digital currencies. The transactions involving these cryptocurrency are cheap, fast and non-hackable. The only problem we have noted is the fact that huge number of transactions affects the system. The system slow-down cause unwanted delays. With huge of customers, the systems need to be updated to avoid similar occurrence in the future.

Impact of demand on Bitcoin price

Increased demand of cards that use bitcoin as a back end can be attributed to higher price of bitcoin. Coinbase is the only available Bitcoin debit card in United States. Others include Wirex and Xapo. Higher demand has been pushing Bitcoin prices higher. High value of the bitcoin can be seen as Bitcoin blockchain auditing and Surveillance Company raised $5.2 million in series A funding.

The recent penetration into the world of Bitcoin is Japan’s online gaming site Gesoten. Japan is one of the countries that legalized cryptocurrency. Coincheck, bitcoin exchange market offers the option to either sell or buy cryptocurrency. In Coincheck, bitcoin has been used in purchasing of the ethereum. The site is in the process of legalizing ethereum in the country. The online gaming site will allow game purchase and subscription using Bitcoin.

The bottom-line

We have seen the reason for Bitcoin price rising higher. This however does not mean that it cannot go lower. Just like any other currency, bitcoin can reach resistance point which can make it stagnate or go lower. For the past two weeks, Bitcoin prices have been playing around $406 to $421.17. This shows the instability of Bitcoin prices.

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