If you’ve been keeping tabs on the digital currencies, you’d know that the bitcoin has gotten clobbered in 2014 but seems to be in recovery mode so far this year. As you can see from the chart below, BTC dipped to $150 in mid-January then broke above a short-term triangle pattern earlier this month, suggesting that more price gains could be in the cards.
However, looking further back shows that the longer-term downtrend is still very much intact, with price still trading below a descending trend line since June last year. If the $300 mark holds as resistance, the bitcoin’s value could continue to fall in the coming months.
However, bitcoin enthusiasts insist that the digital currency is still massively undervalued right now and that the fair price should be around $518.59. If more traders share this view and take advantage of current bargain prices, the bitcoin could regain a lot of lost ground. In fact, several positive developments in the past few weeks have allowed the bitcoin to trade close to its 5-week high.
More and more companies have been adopting bitcoin for their online payments systems, with nearly 100,000 merchants benefitting from faster transactions and larger market reach in accepting bitcoin payments. According to itBit’s head of business development Antony Lewis, the use of the cryptocurrency has allowed several companies to save millions of dollars in credit card transaction fees and eliminate fraud and chargebacks.
Apart from that, news that the company Bitcoin Investment Trust (BIT) has been approved for public trading on OTC markets led to speculations that the digital currency might soon be traded on regulated exchanges. Analysts say that this could be a game-changer for the industry – one that might actually allow the bitcoin to keep climbing from here.
Any bitcoin traders out here? What’s your take on this digital currency? As always, I’d love to see your feedback in our comments section!