Hope you had an awesome weekend. If you’re investing in cryptos you definately did.
The cryptocurrency markets are surging again with Bitcoin leading the way. The shiny digital currency saw a new all time high over the weekend to top $3,344 a coin.
All that new value that materialized with the emergence of Bitcoin Cash has been sucked up by Bitcoin itself as we’ll discover below.
eToro, Senior Market Analyst
Another Fork Coming
Please note: All data, figures & graphs below are valid as of August 7th. All trading carries risk. Only risk capital you can afford to lose.
Failed healthcare, new Russia Sanctions, Tax reform hasn’t even started yet, North Korea sanctions ramping up, Special Investigator on his tail, but where is the President?
On vacation, playing golf, of course.
Trump must’ve mentioned every single time that Obama smacked the little white ball so it’s only fitting that we do the same for him.
The man can afford a break though. The markets are behaving nicely. The Dow Jones has now broken a new all time record for eight straight sessions in a row and the U.S. Dollar is weakening just like he wanted it to.
Members of the OPEC oil price fixing group will be meeting today and tomorrow. Last time they met markets were impressed by their ability to speak about the option to intervene in markets and prop up the price further if needed.
If they were disapointed by the fact that Nigeria and Libya were not discussed, it didn’t show up in the price. The articles preparing for today’s meeting seem almost exactly the same as they did ahead of the last. With many analysts stating that they need to put output caps on the two delinquent countries.
The price of oil is dipping this morning as it did last time. Will the members say something different this time? Will the markets react the same?
Though the fundamentals are strikingly similar the technicals are much different. In the last meeting the price was relatively low. Right now, we’re at a price that could be seen as average.
The blue line in the graph below is the 200 day moving average. The dotted yellow line represents a strong resistance that has been building over the course of this year. Of course, let’s not forget the very round level of $50 a barrel that we are now hovering just below.
A $2 move up would mean a breakout of all three key figures. A $2 move in the other direction would mean that they’re holding strong.
All that money that seemingly came out of thin air to pump up the value of Bitcash is now being fed right into Bitcoin.
Bitcash has fallen from its peak of $12 Billion all the way down below $4 Billion this morning.
During the same time, the market cap of Bitcoin was $44 Billion, and it is now up above $53 Billion.
Bitcash sought to replace the original form of digital money but the miners never embraced it. As it was seen by many as something for nothing, many users are now dumping.
This hard fork that came out of nowhere threw a monkey wrench into the bitcoin scaling debate. However, that debate is still playing out and it seems we’re finally reaching a consensus. SegWit is now almost certain to be implemented shortly and miners are showing overwhelming support for the SegWit2x solution.
So, within the next few months, we will likely get another hard fork. This one with overwhelming support from the Bitcoin community.
Let’s have an awesome week ahead!
This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.
Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.
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