Bitcoin: A Running Estimate

Long-Term Hold

Bitcoin (BTC), is the oldest and original cryptocurrency.  The price of Bitcoin continues to trend upward despite steep (upward and downward) price fluctuation.  The rapid upward trend is due to the onset of mainstream adoption, also due to the use of Bitcoin as a purchasing venue from USD into BTC into Initial Coin Offerings (ICOs) and other alt-coins. 

Bitcoin maintains a significant market capitalization of competing currencies and is available on most exchanges.  The ability to buy and sell Bitcoin on most exchanges makes it highly liquid despite the slow processing times inherent in the Bitcoin blockchain.  Transaction confirmations for buying and selling Bitcoin can one hour or more one hour or more depending on market activity.

Possible Market Outcomes

Outcome #1:  If Bitcoin buyers outnumber the amount of Bitcoin sellers (in the market), expect the increase demand to lead to increase prices for purchasing Bitcoin.  However, the price will continue to increase until the market determines transactions cost are not advantageous for short-term purchasers.

Outcome #2: If Bitcoin sellers outnumber the amount of Bitcoin buyers (in the market), expect a retracement back to previous structure support levels.  This is very likely due to the growing popularity of Bitcoin worldwide

Outcome #3:  If Bitcoin users become disappointed in the slow processing times, and do not want to hold Bitcoin strictly for the long-term then some investors may trade their Bitcoin into other cryptocurrencies

Defensive Recommendation:  This coin should be sold in small groups, because when volume is high the exchanges become clogged for selling

Pre-Trade Posturing:  Move dollars into both the Gemini Exchange and into the Coinbase Exchange so you will be ready to purchase

Exit Strategy:  Spread Bitcoin among exchanges in anticipation of trends and profit opportunities in the cryptocurrency market

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