Only two weeks ago we published my video, where I was commenting about Bitcoin, blockchain and trust management. Today Bitcoin Price broke above $7000, testing my previous $7156 target. And our Genesis Vision ICO pick is about to hit its $2mln target. So, what is next? I will share my expectations in this Bitcoin Price Forecast commentary.
2 November, Bitcoin price forecast - Let's get to the point. Why is Bitcoin price rising? Is Bitcoin bubble? Is Bitcoin investing risky? What is Yagub's Bitcoin price forecast? I'll try to answer these questions in this short post.
Why is Bitcoin price rising?
To answer the question of why Bitcoin price is rising, an investor needs to look into traditional fundamental analysis. You need to see if there any news that is likely to increase Bitcoin demand? If yes, price is likely to rise. And any ban or any limitation is likely to cut the demand, thus reduce Bitcoin price.
Today, Bitcoin price is rising, second day straight forward mostly due to the CME announcement. Two days ago, CME Group announced that they are planning to introduce bitcoin contracts by year-end. This announcement attracted, major institutional interest. This is not it though! Bitcoin listing by CME group is definitely set to attract more institutional investors. Possibility of getting bitcoin listed as a securities contract is going to be perceived as giving Bitcoin a type of legitimacy.
Is Bitcoin bubble?
Answering this question is quite hard! However, I'd like to paraphrase this question and answer it differently.
Yes, Bitcoin and overall cryptocurrencies are showing signs of bubble!
What is a sign of financial bubble, you may ask. The answer is simple, at least from my perspective. Once a financial instrument or investment opportunity is being spoken by your baker or plumber, it means that instrument has reached to bubble level.
Being in Germany, yesterday, I could hear the baker in Hamburg talking about Bitcoin. I can't understand what he and the lady at the tilt was talking about, but 4 times use of "Bitcoin" was enough.
Is Bitcoin investing risky?
Is Bitcoin investing risky? If anyone says that investing of any kind is not risky, he would be fulling himself or thinks that you have no clue of financial markets! Any financial decision carries risk!
Yes, Bitcoin investing is risky. But, isn't keeping money in your wallet risky too? You can think of this statement!
A smart way of taking advantage of Bitcoin investment is to keep your decision in logical tolerable levels. As long as you are not risking your life savings, your bitcoin investment risk should be tolerable. As a result, with my subscribers, we use a simple rule I've created myself: "Investment Rule of 3%"
What is Yagub's Investment Rule of 3%?
Never invest more than 3% of your income or net worth in any high risk asset! In Cryptocurrencies my followers invest up to 3% of their portfolio value:
- Invest 1% of your Portfolio in Bitcoin
- Invest 1% of your Portfolio in Ethereum, Ripple, Dash and a few other important coins
- Invest 1% in other alt coins and ICOs.
Fintech Events Center has a good list of important ICOs and upcoming Blockchain events. Hence, you should bookmark the page for your records.
What is Yagub's Bitcoin price forecast?
Just two weeks ago, while analyzing Bitcoin my BTCUSD price forecast was $7156. I made this Bitcoin Price Forecast according to macroeconomic analysis and combined it with my personal True Fibonacci Waves approach.
According to the very same Bitcoin Price forecast I am expecting another hike in Bitcoin price. So, my Bitcoin price forecast suggests a strong resistance right on $7156 and then a drop towards $6400 - $6000 zone, which should then continue towards $7600 and $8012.
You can find the details in the chart above. If you have other questions, feel free to contact me directly.