Crypto News | Bitcoin Price Breakout on the Horizon

Is the enthusiasm regarding cryptocurrencies really dying down, as some seem to believe, or is this just the calm before a massive Bitcoin price breakout? Some analysts are convinced that the latter is inevitable. There are certainly many bullish signals that seem to point to the fact that the long standoff between the bulls and the bears may be finally coming to an end. At $7,711 as of press time, Bitcoin is more than $300 up compared to Friday, June 1. Of course, this is a measly increase, and the consensus among commentators seems to be that this last week was a particularly boring one. CoinDesk’s analyst Omkar Godbole characterized the situation by saying that Bitcoin is “stuck in a narrowing price range.” Does this mean that there is no more volatility and that the price of the world’s most popular cryptocurrency may finally be settling?

Well, not quite. Bitcoin managed to defend its $7,000 position last week and rose by 9.3% since. What this means is that the bearish outlook we were facing last week got neutralized, and now everybody is anticipating a break above $8,000. If BTC breaches the $7,780 resistance, it could easily spike well above $8,000 within the next 24 hours. The setup is certainly positive, and the anticipated Bitcoin price breakout could only be prevented in case Bitcoin fails to secure a weekly close above $7,080. In that case, we may be looking at a selloff below $6,000 instead.

Bitcoin Google Searches and Growth

One thing that is particularly worrying is the recent sharp decline in the number of ‘Bitcoin’ Google searches. Since January, this number has dropped by 75%. In other words, the Google searches indicate a declining interest, with only a quarter of new potential users compared to January figures. Nicholas Colas, co-founder of DataTrek Research, suggested that the number of Google queries is a good indicator to gauge the number of potential new buyers. Of course, now that a large portion of the population is already acquainted with cryptocurrencies, Bitcoin can no longer rely on the appeal of novelty. It either needs to find a way to recapture the imagination of those who already know about it or, in the words of Colas, establish a new narrative to become the center of attention once more. Of course, the number of Google searches is not the only measure of interest. Wallet growth (the number of new wallets) is arguably more reliable when it comes to assessing new investor interest. In that department, Bitcoin has experienced consistent growth, even though the growth appears to be slowing down somewhat – from 7.6% during the last quarter of 2017, down to 3.7% during Q1 of this year. During April and May, wallet growth was steady at around 2% per month.

Booming Crypto Economy in Brazil

Although Bitcoin price breakout may be imminent despite its growth slowing down, some other cryptocurrencies are on the rise, such as EOS, with Google searches nearly doubling. Even more importantly, cryptocurrencies in general are now becoming increasingly more popular in developing markets and among populations with limited access to banking services. Although Brazil has a pretty strong economy, a recent report published on Forbes shows that more people are opening crypto trading accounts than traditional alternatives such as securities. In Latin America, Brazil is at the forefront both when it comes to regulation and development. Foxbit, a Brazilian cryptocurrency exchange, has 400,000 registered users today, compared to 100,000 a year ago. Over the last couple of years, more than 1.4 million people have opened a crypto trading account in Brazil. When it comes to traditional stock brokerage accounts, in Brazil there are only $600,000 opened at the moment. On Foxbit, the daily trading volume averages 2,000 BTC, while traders in Brazil circulated $2.4 billion in and out of cryptocurrency exchanges last year alone. It seems like everyone is using Bitcoin in Brazil, and even the Central Bank is now developing its own blockchain platform.

New Mining Facilities in the US

In the US, Bitcoin mining is picking up steam, even though it is still a long way off from challenging the Chinese dominance. Same as before, mining companies are once again targeting upstate New York and its affordable electricity. Coinmint, one of the more popular cloud mining services, is looking to renovate and repurpose an old aluminum smelting plant near the town of Massena. The project, reportedly worth $700 million, should create 150 new jobs and revitalize the region. Previous statements from local politicians regarding Bitcoin mining in the region have been unenthusiastic, but this time, Massena Town Supervisor Steve O’Shaughnessy stated in a press release that the project is exciting and represents everything they have been working for.

Ripple’s Aspirations

But to leave Bitcoin price breakout and all related things alone for a little bit, last week we have also seen two major developments from Ripple. The first news is that Ripple was the first cryptocurrency to be listed on VCTRADE, the first cryptocurrency exchange in Japan backed by traditional banks. What this means is that Ripple jumped ahead of Bitcoin, in spite of the latter’s 35% market dominance. Of course, both Bitcoin and Bitcoin Cash will also be added, although at a later date. For now, 20,000 new customers can start trading and investing in XRP, promising to increase the token’s value significantly.

The bigger news, although it became public knowledge prior to the VCTRADE launch, is that Ripple is looking to rebrand in a bid to launch on Coinbase. The rebrand was announced during Ripple’s big community event in May, which featured a performance by Snoop Dogg. Ripple is now looking at a change in direction, trying to make XRP a full-fledged, adoptable cryptocurrency instead of a security. To be seen as an actual cryptocurrency, Ripple needs to get listed on a major crypto exchange. Enter Coinbase. However, the only way for XRP to become a real asset is for Ripple to cut ties with it. Ripple can no longer hold a major share of XRP and it can no longer exercise full control over it. By distancing itself from its token, the company could “desecuritize” XRP. For that to happen, the general public needs to be convinced that Ripple the company truly let XRP go. Analysts believe that listing XRP on a major exchange could lead to the token’s value increasing by more than 200%.

So, there are still numerous exciting new developments that keep revitalizing the cryptocurrency ecosystem. Keep that in mind when you’re on the lookout for that next investment opportunity and prepare yourself for a potential Bitcoin price breakout!

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Author: Max Rothstein

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