Bitcoin Price Analysis: Backpage Drives Adoption

Market Thoughts

Now that the Greek crisis has gone to the back-pages, we can get back to a standard look at the industry and consumer acceptance. Staying with the convenient wording, backpage.com might just pave the way for the next wave of mass adoption, just like Wikileaks and Silk Road have done in years past. The world’s oldest profession does not care what laws politicians enact, the tactics used by law enforcement officers, or the whim of the payment providers. The industry will always find a way to thrive and now thanks to the Internet it is starting to act more like a free market.

Posts are popping up everywhere about advertisers on Backpage seeking out local Bitcoin dealers. Spending last weekend in Canada, the additional demand was confirmed by local Bitcoin dealers there. The next step is obvious, and is only a matter of time. Within weeks these services will have an option to pay in Bitcoin as it not only cuts out banks for this cash industry, but also the hassle of going out and converting cash to bitcoins to pay for more ads. At least one escort service is already ahead of the game, and has been for over 6 months.

Bitcoin is agnostic when it comes to moral and legal positions, and shadow economies are global economic powerhouses. While Nasdaq has mentioned that they plan to be the first exchange to utilize Bitcoin, those are plans for the future. As we’ve seen in the past, with whistleblowing and the illicit trade of goods, industries that are excluded from financial services will turn to Bitcoin. Backpage is about to skew the supply/demand dynamic right here and now.

Market Outlook

The technical picture continues to look pretty good, and is actually identical to last week.

https://www.tradingview.com/x/YLDa9YZY/

The recent upswing come to a stop around the $315 mark, which happens to match the high for the year, occurring late Jan. This has allowed us to place an additional horizontal resistance line which, when broken through, should set off a really nice upswing. Currently we are on track for a standard pullback, which has many support points along the way. The most critical of these support points is around $250.

The RSI has been in overbought territory for some time, so it is good to see it fall back down to a reasonable level. The arrows have not been changed in 3 weeks because the expectation is playing out perfectly. It would be nice to see a bounce soon.

The more detailed Daily Chart is now reserved for subscribers to the BNC Bitcoin Markets Report, which outlines short-term, intermediate-term and long-term viewpoints. It also breaks down all the relevant weekly news, its influence on Bitcoin’s price and general standing within the financial ecosystem. The reports are free for a limited time.

Final Thoughts

The rest of the year will be a very interesting time for Bitcoin. In light of the steady decline in price over 2014, there seems to be little activity on the bitcoin spending front, but the demand side seems to be getting a lot of attention. New P2P exchanges are popping up and should do wonders to help spread adoption. New entrants into the ecosystem are badly needed to take Bitcoin back to the all time highs.

This article was completed on Thursday July 23 10:45 pm ET, when BraveNewCoins Index showed Bitcoin price at $276 USD.

Tone Vays will be a speaker at the upcoming Inside Bitcoins San Diego Conference Dec 11-14.

Disclaimer: The price projections above are just the opinions of one trader. It is meant as a guide, or fresh look, to supplement the reader’s personal views on bitcoin. Trading in general (but especially Bitcoin) is incredibly risky and should only be done with capital one can afford to lose. The Author is a trader and does take on small position in the manner suggested in the article.