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Bitcoin Services Inc (OTCMKTS:BTSC) Breaking Out As Bitcoin Price Bottoms Out

Bitcoin price embarking on a jaw-dropping rally, after months of losses, is one of the reasons why Bitcoin Services Inc (OTCMKTS:BTSC) is showing signs of breaking out.  The flagship cryptocurrency has started showing signs of improvement, depicted by price gains and robust market sentiments. The gains have helped support rallies of stocks, with exposure to the cryptocurrency sector.

Share Price Analysis

The stock came under immense pressure as the broader cryptocurrency imploded for, the better part of last year.  An 80% spike from all-time lows could as well provide early signs that Bitcoin Services has hit rock bottom and due for a bounce back.

Bitcoin Services has shed more than 90% in market value over the past year and in dire need of new catalysts, to bounce back from current lows. While the stock has started showing signs of bottoming out, it remains engulfed in a steep downtrend, having felt the full force of short sellers over the past year.

With the stock languishing at the $0.03 level, it first needs to rally and stabilize above the $0.05 mark, to be considered a bull play in the short term. Below the $0.03 mark, the stock remains susceptible to further drops in continuation of the long-term bear trend.

BTSC Daily Chart

Above the $0.04 mark, Bitcoin Services remains well positioned to make a run for the $0.08 mark, seen as the next substantial resistance level. For the stock to turn bullish, as a long-term play, then it will have to rally and stabilize above the $0.16 mark.

About Bitcoin Services

Bitcoin Services is a cryptocurrency-focused company that engages in Bitcoin mining among other cryptocurrencies. The company also offers escrow services as well as Bitcoin mining services. It is also involved in the development and sale of blockchain software and innovations.

Why is Bitcoin Services Bottoming Out?

Recent price action activity has indicated that Bitcoin Services could break out, after a long period of underperformance. Renewed investor interest in the stock, depicted by an increase in trading volume, comes on the heels of Bitcoin cryptocurrency also showing signs of bottoming out from one-year lows.

Bitcoin prices are up by more than 15%, from one-year lows, fuelling speculation a sell-off wave that had pushed it to one-year lows has lost momentum. Optimism of a bounce back is on not only Bitcoin but other cryptocurrencies as well. The broader cryptocurrency market has bounced back by more than 10% attributed to renewed investor interest as well as strengthening investor sentiments.

Global Bitcoin traded volume has surged to one-year highs of more than $35 billion. Meaningful moves in the cryptocurrency sector, many at times move hand-in-hand with the volume. It thus does not come as a surprise that Bitcoin Services has started bottoming out.

“While we are very optimistic about the long-term prospects of Bitcoin and the crypto market, we agree that the bear market is not quite over yet. We believe there will be a steady rise of Bitcoin through the year, passing $5K by the end of the year Once Bitcoin establishes a stable price level above $4,500 and possibly crosses $5,000, we can begin to believe that the bears have had enough,” said Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital.

While Bitcoin Services long-term prospects are dependent on Bitcoin Price, the management is yet to reiterate and underscore the company’s long-term prospects and plans. A lack of updates from the management has gone a long way in spooking investors, which explains the stock’s subdued activity in the market in recent months.

Bottom Line

While Bitcoin’s jaw-dropping rally is welcome to cryptocurrency enthusiasts, it is still early to say that the crypto bear market has finally ended.  A steady increase in price must come into play if Bitcoin Services is to continue bottoming out.

A spike in Bitcoin prices should go a long way in strengthening investor confidence in the stock. This is because the company generates most of its revenues from mining operations. A higher price for Bitcoin makes Bitcoin mining operations lucrative something that should see the company generate increased revenues, the key to triggering renewed investor interest in the stock.

Until Bitcoin rises and stabilizes above the $5,000 mark, Bitcoin Services looks, set to be under pressure, which could result in wild swings in the share price. Until then, traders can view BTSC as a trading vehicle and proxy for Bitcoin price moves.

We will be updating our subscribers as soon as we know more. For the latest updates on BTSC, sign up below!

Disclosure: We have no position in BTSC and have not been compensated for this article.

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Bitcoin Services Inc (OTCMKTS:BTSC) Breaking Out As Bitcoin Price Bottoms Out
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