Near Term Challenges That Need to be Dealt With...

Over the past month, both the fundamental and technical cases for bitcoin have both strengthened significantly. Having said that, there are some near term challenges that need to be dealt with before a sustainable move to the upside can be made.

Fundamenally speaking things have been very good for bitcoin lately. China continues to devalue the Yuan in a failry consistent manner, India has tried to demonetize big bills with what have so far been disastous results, a Trump win adds to domestic uncertainty, and protocol improvement roll-outs such as SegWit are encouraging from a tech perspective. On that note, however, the emergence of Bitcoin Unlimited (BU) and ViaBTC are both disconcerting developments that will likely hinder any further price appreciation in the near future.

With that in mind we want to inject some objectivity, as well as longer term thinking, into the conversation in order to put this situation into context. While it may be frustrating to many of us that Ver and his crew have created such a stir, this is a good lesson in how easy it still is to divide and stall a bitcoin project that remains in its monetary infancy. Despite the fact that it may take time and resources to bleed BU out (which we are fairly certain will happen eventually), it will be a good example for and warning to those who want to try to hard fork the experiment without consensus. Leaving those who are detrimental to bitcoin broke and tainted will be a strong message to the world.

On the technical side of things, it looks to us like the market may be ready for a near term pullback to test more significant support levels below the market, however the longer term forecast remains intact and bullish. Once the near term roadblocks are cleared away, watch as price reaches new heights.


​@AKWAnalytics