Bitcoin Price Weekly Analysis: BTC Primed To Test $5,000
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bitcoin Price Weekly Analysis: BTC Primed To Test $5,000
Key Points
bitcoin price gained pace recently and broke the $3,580 and $3,780 resistances against the US Dollar.
There is a major symmetrical triangle forming with resistance at $4,080 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to break the $4,080 and $4,150 resistance levels to rally towards $4,500 or $5,000.
bitcoin price is placed in an uptrend above $3,580 against the US Dollar. BTC/USD is likely to extend the current bullish wave towards $4,500 or $5,000.
This past week, bitcoin price started a above the $3,200 resistance against the US Dollar. The BTC/USD pair surged above the $3,580 and $3,780 resistance levels. There was even a close above the $3,780 barrier and the 100 simple moving average (4-hours). An intermediate high was formed near $4,175 and recently the price corrected lower. It broke the $3,900 level, but the $3,780 level acted as a solid support.
The price started a fresh upside and broke the $3,900 resistance. It even broke the 50% Fib retracement level of the recent decline from the $4,175 high to $3,778 low. More importantly, there is a major symmetrical triangle forming with resistance at $4,080 on the 4-hours chart of the BTC/USD pair. The triangle seems to be a bullish continuation pattern towards the $4,175 and $4,300 levels. A successful break above the $4,100 and $4,150 levels is needed for . Once there is a break above $4,175, the price could rally towards $4,500 or $5,000.
Looking at the , BTC price remains well supported on dips near the $3,900 and $3,780 levels. As long as there is no close above the $3,580 pivot, the price is likely to surge towards $4,200, $4,500 or even $5,000.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is about to move into the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is well above the 60 level.
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While () activation is looking by the hour, 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
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 is based on, which is being developed by.
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, and 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 “” 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 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, a payment-routing solution for the Lightning Network.
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