Bitcoin has undergone an impressive rise and is hovering at around the $611 mark. That’s about $7 higher than it was during our last price piece. However, if Kim Dotcom has anything to say about it, the bitcoin price will be much higher in the next couple years.
“Volume has remained consistently high, which is a great sign for further continuation. We should see new highs this year should this pattern hold. Price remains at the lower part of the uptrend channel which gives us a favorable risk-reward ratio for entry on the lower trend line support. This week, we see a high probability of a breakout to the upside, with a favorable risk reward ratio. We can see that the Stochastic Indicator has printed a divergence when compared to the price trend. Usually, when this happens there is a good chance that it will resolve to the upside.”
There are several things that could be contributing to the Bitcoin spike. The banking crisis in Germany and Deutsche Bank’s fall from glory may have opened the door to a future price breakout, while an important scaling conference is set to take place in two weeks. The upcoming SEC decision regarding the Winklevoss Twins’ Gemini exchange could also push bitcoin ahead.
Publicity is also stemming from entrepreneur Kim Dotcom, who predicted on Twitter that bitcoin could hit $2,000 in just two years’ time. His prediction came in response to a question posed by Internet journalist Andreas Lang, who asked if Kim thought the price would rise thanks to the efforts of Kim’s new Megaupload 2 and Bitcache.
“Oh yes,” Kim replied. “MU2 and Bitcache will take #Bitcoin mainstream. I expect Bitcoin to hit the $2000 mark within 2 years.”
“I can tell you that Megaupload and Bitcoin had sex,” Kim stated in a further tweet. “There is a pregnancy, and I have a feeling that the baby will be such a joy.”
Bitcache is a “blockchain-powered method of attaching Bitcoin micro-transactions to file transfers,” while Megaupload makes file sharing possible for anyone without access to torrent applications (or who possibly experienced difficulties with them). Bitcache is slated to be implemented in the Megaupload 2 in January of next year.
This is Kim’s third attempt to launch an online file storage and distribution service, the first having been shut down by government authorities in 2012. Kim is also fighting an extradition appeal that would see him shipped back from New Zealand (his current home) to the U.S., where the FBI seeks to have him tried.
Do you agree with Kim Dotcom’s statements about bitcoin? Post your comments below!
Images courtesy of Reuters, Wired.
1 Hova Villas Brighton & Hove
BN3 3DH United Kingdom
All rights reserved by Bitcoinist Ltd. | 2016.