18.10.201807:36 Forex Analysis & Reviews: Bitcoin analysis for 18/10/2018

The Chief Information Officer (CIO) of Blockchain investment company and Pantera Capital hedge fund told financial media, that cryptocurrency markets could increase by tenfold by 2020. Speaking in an interview, CIO Joey Krug said that improvements to Bitcoin's scalability were necessary to trigger a change in deflation rates observed during the year: "These are all markets, so if there is no scalability, there are no market makers" - he said.

The commentary appeared a few days after new events regarding the institutional side of transactions on Bitcoin markets - Fidelity Investments revealed that it is testing a regulated deposit solution for investors and hedge funds. While the reactions of figures from the world of finance, such as Michael Novogratz from Galaxy Digital, were positive, the news did not change the mood or prices on the Bitcoin market. According to Kruga, this is because sentiment requires signs of Bitcoin adoption in the current climate, which in turn depends on improving efficiency. However, the management expressed doubts as to whether Bitcoin will in itself be able to compete with the Visa and MasterCard payment networks. "I do not know if it will ever happen with Bitcoin, but I think that in the next few years we will see Blockchain as fast as Visa or MasterCard " - he continued, adding that such improvements could trigger a ten-fold increase in prices in two years.

Developers are still working on improving the number of transactions that Bitcoin can deal with, mainly through non-chain solutions such as Lightning Network.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is moving inside of the consolidation zone between the levels of $6322 - $6,455 as the sideways trend continues. In the short-term outlook, the technical resistance at the level of $6,455 is the first obstacle for bulls on their way to the next target at the level of $6,549. So far, the market is being supported by bulls, but the traders should keep in mind the fact that the larger time frame trend remains down.