Bitcoin Price Analysis – Bulls Blast Through $4K But is a Correction Imminent?

bitcoin price continued surging through the early hours of Sunday morning, making new highs for 2019, up 1.9% at $4190. As we head into the weekly close we look at the price action and what may lie ahead.

WEEKLY CHART

Looking at the weekly chart at the time of writing, bitcoin price 00 has cleared important technical levels of $4040 and $4106, which are the highest weekly closes since the fall from $6k.

A close above $4100 would be significant as it would mean that BTC price has printed a higher weekly low and a higher weekly high, which would indicate a change in market structure and might imply a move higher would be in the works.

The Mac-D has also crossed bullish and is printing higher highs on the histogram, showing that momentum favors the bulls.

The 200-week moving average which has twice acted as support, continues to rise and will start next week at around $3400.

DAILY CHART

The 1-day chart shows that bitcoin has moved up in three clear waves from the lows around $3400. The 50-day moving average lasted as resistance for almost a month before breaking, with the 100-day following closely.

The CMF illustrates that there has been underlying buying pressure since Mid-December 2018, although there is some bearish divergence starting to show, which may imply bitcoin may need to make a corrective move. Following three clear waves higher from the lows at $3400.

There is usually an ABC corrective phase expected after such a move, which would test the bulls around $3900-$4000. if volume steps up in this range, it would be indicative of a move higher.

Failing to find support around $4000 would see the 50 and 100-day cluster above $3500 as technical support, which must be held if bitcoin price is will continue to climb higher in the coming weeks.

MONTHLY CHART

With February closing on Thursday evening, next week will be critical for bitcoin price. A close above $4000 would mean bullishly engulfing the previous two monthly candles, which would bring the 6-month losing streak to an end. It would also be the first time there has been such an occurrence in the bear market.

Volatility is likely to continue into early next week, with the outcome setting the tone for the month of March.

Trade bitcoin, Litecoin and other cryptocurrencies on online bitcoin forex broker platform evolve.markets.

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The views and opinions of the writer should not be misconstrued as financial advice. For disclosure, the writer holds bitcoin at the time of writing.

Images courtesy of Tradingview.com, Shutterstock

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Published at Sun, 24 Feb 2019 12:00:08 +0000

July 20, 2017

SegWit or Not, Bitfury is Ready for Lightning With Successful Bitcoin Main Net Test

While Segregated Witness (SegWit) activation is looking more likely by the hour, Bitfury is getting ready to deploy a version of the Lightning network with or without the protocol upgrade.

The blockchain technology company, perhaps best known for its bitcoin mining pool of the same name, successfully sent real bitcoins over a test version of the Lightning Network this week. Interestingly, Bitfury’s implementation of the technology is compatible with the current bitcoin protocol and is therefore functional even without SegWit.

“This is a major accomplishment by our technical team and an important step forward for the Lightning Network and the growth of bitcoin,” Valery Vavilov, CEO of The Bitfury Group, said in a statement.

Lightning Network

The Lightning Network is a highly anticipated second-layer scaling solution that allows for cheap and instant (micro)payments. Cleverly leveraging bitcoin’s basic scripting capabilities, Lightning users should be able to make a virtually unlimited number of transactions, where only a minimal proportion of them are recorded on bitcoin’s blockchain, thereby boosting bitcoin’s scalability. Meanwhile, all users remain in control of their own bitcoins at all times, maintaining the trustless properties of bitcoin itself.

“The Lightning Network has the potential to solve bitcoin’s scalability issue and provide instant payment functionality. By demonstrating that the Lightning Network can function now, Bitfury has cleared the way to increased transaction processing and further adoption of bitcoin,” Vavilov said.

Bitfury’s Lightning implementation is based on LND, which is being developed by Lightning Labs.

For its demo, the Bitfury software team created two Lightning transactions. One of these is a straight transaction from one Lightning node to the next, effectively simulating a payment channel between two users. Since it was only a test, Bitfury only made one transaction — but it could have made thousands back and forth at no extra cost.

The other test was a single-hop transaction, which better simulates the main purpose of the Lightning Network. Users pay each other through a mutual third party, without requiring any trust in this third party. While the Bitfury software team only made one transaction on this channel as well, it could, once again, have made thousands back and forth between all three parties, at no extra cost.

Since Bitfury’s test took place on the main net, the funding and settlement transactions are recorded on bitcoin’s blockchain and can be seen by any typical block explorer.

Tests and SegWit

Bitfury’s is not the first successful test of the Lightning Network. Several companies, including Lightning Labs, Blockstream, ACINQ as well as Bitfury itself have experimented with their implementations of the technology. But since most of these companies are working on versions of Lightning that rely on Segregated Witness, these tests were limited to bitcoin’s testnet and Litecoin. Likewise, major wallet service Blockchain has sent “Thunder” transactions over bitcoin’s main net. But while Thunder resembles the Lightning protocol, it isn’t quite as trustless or decentralized.

As such, Bitfury is the first company to get a version of the Lightning Network up and running on the current bitcoin protocol.

“We released this first experimental version of the Lightning Network for bitcoin because we think the Lightning Network is an essential technology for bitcoin and would love to see it made available as soon as possible,” Vavilov said. “We are proud that our developers found a way to adopt the Lightning Network for bitcoin without SegWit. It’s a huge step forward for bitcoin scalability.”

Regardless, the CEO noted that he is hopeful that SegWit will activate on the bitcoin network. With BIP91 currently getting close to its activation threshold, it seems increasingly likely that SegWit could be live within a month. This would allow for a version of the Lightning Network that offers an improved user experience.

Vavilov:

“The Lightning Network will be the most effective when used with SegWit, which is why we are fully committed to SegWit’s implementation, and we will continue working on a version of the Lightning Network that is compatible with SegWit.”

Bitfury, which started out as a bitcoin miner, has grown to become one of the largest private infrastructure providers in the Blockchain ecosystem. Part of this effort, the company has been supporting the development and implementation of the Lightning Network for well over a year. Bitfury previously also co-designed and successfully tested Flare, a payment-routing solution for the Lightning Network.

Watch the video of Bitfury’s tests here:

[youtube https://www.youtube.com/watch?v=fqT-3xN8npA?feature=oembed&w=480&h=270]

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