Bitcoin Hovers Near Six-Week High as 99% of Computing Power Backs SegWit

Digital currency bitcoin is trading near six-week highs, as the blockchain community’s most divisive battle reached its conclusion – at least, for now.

Bitcoin (BTC/USD) traded above $2,800.00 over the weekend, as prices came within a few hundred dollars of last month’s record high. The digital currency was trading at $2,749.00 ahead of Monday’s European session. Prices fluctuated within a $56 range overnight.

At current price levels, bitcoin has a market cap of around $45.81 billion on supplies of 16.45 million.

Miners Back SegWit

Miners representing 99% of bitcoin’s computing power have backed the Segregated Witness (SegWit) software upgrade designed to boost the digital currency’s processing power, according to a Friday report from The Wall Street Journal. The decision was based on an online voting mechanism of the blockchain community.

The debate over scaleability was really a battle between miners and entrepreneurs, with the latter seeking to increase block size and maximize bitcoin’s value as a payment system. Miners, on the other hand, were concerned that larger block sizes would increase operating costs. Higher costs would deter miners from participating and thus lead to more centralized control of the digital payment system.

Price Recovery Extends Across Digital Currency Market

The recent price price recovery certainly hasn’t been limited to bitcoin. Ethereum traded as high as $229.60 on Monday, having gained more than 40% compared to last week.

Litecoin was down more than 4%, but traded at multi-week highs on Sunday.

Seven digital currencies were valued at more than $1 billion at the start of the week. Half a dozen more clocked in at at more than $400 million.

The July price collapse wiped tens of billions from the digital currency exchanges.

BTC/USD Technical Overview

Bitcoin’s long-term technical outlook remains firm, with the 50-day moving average diverging sharply from the 200-day SMA. Price action has leveled somewhat, but remains in a firm uptrend after last week’s sharp reversal. Momentum strength as conveyed by the RSI is approaching bullish territory after last week’s oversold levels attracted bargain-hunters.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi