Naeem Aslam, ThinkMarkets Chief Market Analyst, said that Bitcoin (BTC) could rally to over $10,700 if Facebook launches its virtual currency called GlobalCoin. In general, May is a very positive month for Bitcoin, and indeed, the digital currency behaved very positively this year.
Can Bitcoin reach $10,000 in the near future?
The crypto analyst explained that Bitcoin strong monthly performance is expected to behave in a similar way as the 5-year average trailing percentage gain at 21.03%. The trailing high for that period of time is 70.86 percent. May remains as the best 5-year trailing average percentage month for Bitcoin.
The analyst explained that the RSI needs o match the ascending trend of Bitcoin’s price action having a look at the daily chart. If the RSI goes below the trend line, traders shouldn’t be worried because oversold conditions would attract more buyers.
Bitcoin’s market structure shows that the digital currency could move upwards and reach $10,712 in just two weeks. That would represent a price increase of 35% in just a few days. This would happen due to the fact that Facebook is expected to unveil the so-called GlobalCoin.
There are several rumours regarding Facebook’s intentions and what the company wants to do with this virtual currency. Apparently, users will be able to transact funds in the social network and other applications connected to it, including WhatsApp, Messenger and even Instagram.
At the same time, employees would be able to receive payments for their work at the company with the digital asset launched by Facebook. Although this seems positive for the virtual currency, there are also several individuals that criticize it. One of the main complains is related to Facebook gathering information about users’ financial transactions.
Aslam considers that GlobalCoin is going to help virtual currencies reach mass adoption that will come through Facebook’s GlobalCoin usage. Individuals from different countries will have access to financial services where before they didn’t and they will be able to be connected with the entire world in just a few steps.
Bitcoin is currently being traded close to $7,900 and it has a market capitalization of $140 billion, according to CoinMarkeCap. In the last 24 hours, the virtual currency lost 1.24% of its value. What will happen with GlobaCoin is still unknown.
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