90% of users want Bitcoin prices to be higher

Like all commodity markets, the price of Bitcoin is always a mystery to its investors. According to a poll conducted by a Bitcoin research institute, the "economic majority" of Bitcoin stakeholders support a larger block size. If you ask them why, they generally say that it is for more application access. What is the benefit? Of course, the price and value increase!

Bitcoin Price Analysis

Bitfinex 4 - hour chart ( August 18 , 4:14 AM UTC ) ）

From xbt.social report earlier today:

Our short position remains open as the price is slowly declining towards the consensus target of $252 (Bitstamp/Bitfinex).

The longer term 4 hour candlestick chart shows that the price is in the final wave 5 of a descending channel and has not yet reached the lower trendline of the channel.

The price of Bitcoin sometimes forms a double bottom structure after completing the target of the last wave (the fifth wave). The same may be true here, as the charts of most exchanges now show signs of slowing down the downward trend.

The main support levels are at $252 and CNY 1550, which are also the 100-period MA and 200-period MA on the daily candlestick timeline. If the price gaps towards the target, we recommend members to take profits as the lower target is highly unlikely to be reached without the first upward correction.

We keep a keen eye, like legendary trader Jesse Livermore, watching closely for signs of a reversal.

Analysis Update

Bitstamp 1- day chart   ( Updated at 15:00 UTC on August 18 )

The Bitcoin price chart has already seen a significant decline since last June, and this year’s price evolution path has so far been relatively lackluster.

The chart structure since January 2015 may give the impression that Bitcoin has run out of fuel and will only be anchored in such a valley. However, please do not let the appearance of things deceive you, the chart structure of 2015 has always been such a structure, that is, the process of continuously releasing the falling volume and using it to build a stable bottom foundation.

The encouraging aspect is that the bottom pattern is low-volume but long-lasting. This is a solid bottom formation model, almost comparable to the bottom of 2012, and there is a chance to see some strong breakouts. We are not seeing $900 or $1000 yet - as some long-term moving average dislocations suggest some big mid-term corrections over the next year - however, $500 and $680 are achievable - once the current pullback is completed.

The daily chart shows that the price has found its 200-day moving average. The price may fluctuate around this moving average for a while, so don't rush to study the long-term. We will look for obvious market reversal signals and give confirmation in the small-cycle chart.

Summarize

As XT Hearn puts it, the “economic majority” believes that a larger block size will lead to a higher price for Bitcoin. In other words, no matter which way you look at it, the economic majority wants to see higher prices on the charts. When they become an economic majority, it inevitably leads to another question: “Who is the economic minority that has been selling and driving the price down?” Can the power of an economic minority overwhelm the economic majority? It’s a confusing logic.

Bitfinex Depth Chart and Bid/Ask Volume Monitor: