Bitcoin Price Forecast After Buterin’s Analysis of Scaling Disputes – Will BTC Adapt?
Bitcoin (BTC) has been unable to maintain its bullish momentum from overnight and is currently trading near $67,700. This decline can be attributed to several factors, including a $300 million hack at a Japanese cryptocurrency exchange and President Biden’s veto of a bill that aimed to regulate the SEC’s crypto guidelines.
Furthermore, Vitalik Buterin, co-founder of Ethereum, recently shared his insights on the Bitcoin block size debate. He acknowledged that the proponents of smaller blocks had emerged victorious, but he also pointed out that those advocating for larger blocks lacked the technical expertise to successfully implement their ideas. Previous attempts by supporters of larger blocks, such as Bitcoin Classic and Bitcoin Unlimited, to increase Bitcoin’s transaction capacity through hard forks had failed.
Buterin suggested that embracing new technologies like ZK-SNARKs could address scalability issues and prevent future disputes. He also highlighted advancements like BitVM, which could enable decentralized Bitcoin rollups and enhance transaction processing without altering Bitcoin Core.
The impact on Bitcoin’s price is expected to be minimal, as the discussion revolves around historical events and technical improvements rather than immediate market influences.
DMM Bitcoin, a Japanese cryptocurrency exchange, experienced a significant hack, resulting in the loss of 4,502.9 Bitcoins valued at approximately $300 million. The breach was detected at 1:26 p.m. local time, prompting swift actions to prevent further losses. The exchange, with the support of affiliated companies, has pledged to replace the stolen Bitcoin to ensure the security of users’ funds. DMM Bitcoin has temporarily suspended spot purchases and warned users of potential delays in Japanese yen withdrawals. Chainalysis identified this hack as the largest since December 2022 and the seventh-largest in history. However, DMM Bitcoin has assured customers of full reimbursement and has implemented enhanced security measures.
The hack could have an impact on Bitcoin’s price due to increased concerns about security and trust in cryptocurrency exchanges.
President Biden has vetoed legislation that was approved by both the House and Senate and aimed at regulating cryptocurrencies. The proposed law sought to overturn SEC guidelines that would require certain companies to classify crypto assets as liabilities on their balance sheets, even if they were held for clients. Biden’s reasoning for the veto was that it would weaken the SEC’s ability to protect investors and enforce regulations. While the law had some Democratic support, it was primarily backed by Republicans.
This veto highlights the growing political attention on cryptocurrencies, especially with former President Trump recently endorsing crypto donations and advocating for investor rights.
President Biden’s veto indicates ongoing regulatory uncertainty in the cryptocurrency market, which could potentially affect Bitcoin’s price due to increased investor caution and market volatility.
In terms of price analysis, Bitcoin (BTC/USD) is currently trading around $67,623, with the pivot point at $68,070 serving as a crucial indicator for market direction. Immediate resistance levels are situated at $68,800, $69,800, and $70,600, while support levels can be found at $67,500, $66,650, and $65,932. The Relative Strength Index (RSI) stands at 47.53, suggesting a neutral to bearish sentiment. The 50-day Exponential Moving Average (EMA) aligns with the pivot point, indicating significant resistance at that level. Technically, there is an upward trendline supporting Bitcoin near the $66,650 level, with resistance around $67,900.
A breakout above $67,900 could drive BTC prices towards $69,000 or higher, while a selling bias is suggested by the 50 EMA and RSI, indicating a potential downward move. Therefore, selling below $67,900 is advisable, while a breakout above that level may warrant a buy position.
Technical indicators indicate that a bullish breakout above $68,862 could lead to further gains towards $70,620, while a break below $67,885 might expose BTC to further downside risks, targeting $67,107 or even lower towards $66,380 and $65,428.
In conclusion, the outlook for Bitcoin remains cautiously bullish above the pivot point of $68,232, with immediate resistance at $68,862 and support at $67,107. Traders should closely monitor these key levels for potential market movements.