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BTC/USD: Bitcoin hits a new all-time high

On Sunday, the 11th of June, the BTC/USD rate reached a new all-time high, testing the 3,000 USD mark. According to the Bitifnex exchange, the bitcoin rose to 3,003 USD. Media outlets continue to harp on about Blockchain, which is pushing up the prices of cryptocurrencies. Taking its cue from the bitcoin, another cryptocurrency, ethereum (ETH), also reached a new all-time high. The ETH/USD rate rose to 346.95 USD. Since the turn of the year, ethereum has appreciated by 3,400%.

Business Area Markets, the energy trading division of Swedish government corporation Vattenfall, is currently testing the capabilities of distributed registry technology. Last week, the company announced that it had teamed up with 22 other European firms with the aim of conducting peer-to-peer trading in the wholesale energy market using Blockchain technology.

Chinese regulators are drawing on the experience of their American and British counterparts, who are currently developing a regulatory framework for Blockchain technology in order to develop a set of standards that can be used on financial markets.

4-hour chart

On the 5th of May, I was expecting a small correction on the BTC/USD pair. Owing to the cryptocurrency's popularity and the high demand for bitcoins, the price shot up to 2,899.70 USD without any deviation. Only after hitting a new all-time high did the rate correct by 38.2% of the upwards movement from 2,000 USD to 2899.70 USD. From the 2,555 USD (38%) - 2,527 USD zone, buyers started opening long positions on the bitcoin.

According to skeptics, the crypto-bubble continues to inflate. If it bursts, the consequences will be significant for everyone. For example, if you take 38.2% of the growth from 1,810 USD to 3,003 USD, the price could quickly correct to 2,271 USD. These are just the minimum estimates. If the correction gains momentum as speculators close their long positions, the nearest support may only come at 2,210 USD. Remember the downwards correction from the 25th to 27th of May, when the rate fell by 32.7%. Any negative news and quotes will start to fall.

Looking at the 4-hour timeframe, I've identified 2 cycles; 20 and 35 bars. If we ignore the news to come out in the next few days, I'm envisaging a downwards correction until the 14th of June. When the price rebounds, I've got my eye on 3 intermediate levels; 2,750 USD, 2,655 USD and 2,720 USD.



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