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BTC/USD is hovering around $4,300.
Mati Greenspan says volatility is good for Bitcoin's popularity.
Bitcoin is hovering around $4,300 handle, locked in a narrow range with the upper border at $4,400. The first digital coin has calmed down after a volatile week as the market players seek to understand what comes next.
According to Mati Greenspan, a senior market analyst at eToro, volatility growth brought the discussion of crypto mass adoption issues to the forefront.
“Certainly, it would be better for the use case of cryptocurrencies if they remained more stable, or to see a slow but steady increase in prices. But let’s be straight, would bitcoin be as popular as it is today if not for the wild volatility?” he commented.
Mr. Greenspan believes that the bull run of 2017 brought a vast amount of new users to the crypto universe.
“The outrageous bull run of 2017 has been largely responsible for bringing an unprecedented number of new users into the network but it seems that excitement can be generated on the way down as well.”
Bitcoin's technical picture
From the short-term point of view, BTC/USD is supported by SMA50 (1-hour) at $4,166. Once this level is cleared, the downside may be extended towards critical $4,000 with SMA200 (1-hour) on approach. A sustainable move under $4,000 with expose $3,900-$3,870 area
On the upside, the nearest resistance lies with congestion zone $4,500, which needs to be cleared before we can proceed to the next psychological hurdle $5,000.
BTC/USD, 1-hour chart
Tanya Abrosimova
FXStreet
