Bitcoin prices were remarkably steady on Thursday, as markets welcomed a new version of the digital currency following the Aug. 1 fork.
Bitcoin Prices Survive Hard Fork
After reaching $2,900.00 on the day of the fork, bitcoin prices have stabilized north of $2,700.00. The BTC/USD traded within a $23 range on Thursday, retaining a market cap of roughly $45.2 billion.
The digital currency’s technical picture remains solid, but its fundamental outlook has changed. While the newly minted Bitcoin Cash has not undercut bitcoin’s value yet, the creation of multiple forks could trigger uncertainty about the market’s future.
The Aug. 1 hard fork amounted to a split in the digital payment system, as the blockchain community sought new means for handling disagreements over how the underlying technology should run.
Bitcoin Cash Makes a Strong Debut
The short history of Bitcoin Cash (BCH) has been a turbulent one. Prices spiked above $700.00 on Wednesday, which translated into a gain of more than 130%. The rapid rise gave the new currency a market cap of over $10 billion.
The new token’s value was last pegged at $482.50, which represents a gain of 12% from the previous close.
Coinbase Customers Threaten to Sue
The fork in bitcoin’s blockchain has triggered infighting in the digital currency community, with some exchanges rejecting the new token entirely. Chief among them is Coinbase, one of the world’s largest cryptocurrency exchanges, which decided last week not to support Bitcoin Cash. An activist group have threatened to sue Coinbase for its decision, equating it to a brokerage withholding new shares from its investors.
The group’s stated mission to allow users to “trade or withdraw the Bitcoin cash tokens that rightfully belong to them following the 8/1/2017 Bitcoin hard fork.”
Coinbase set out its decision on Bitcoin Cash in a July 27 blog post. The platform has seen an exodus of users ever since.
Bitcoin Price Chart
Bitcoin Cash Price Chart
Bitcoin Hits $100 Billion as Record Rally Continues
Bitcoin’s epic rally intensified Friday, as the token reached $6,000 for the first time in its history, bringing the total market value above $100 billion.
Bitcoin’s Fresh Intraday High
BTC/USD touched an intraday high of $6,064.14, bringing its total market cap to $100.8 billion. That’s roughly $85 billion higher than where the market started in January.
At press time, bitcoin was trading around $5,993, up more than 5% on the day. From a technical perspective, the digital currency is considered overbought. However, the technicals are typically less reliable during extreme price movements like we’ve seen in recent weeks. The world’s leading cryptocurrency has added a staggering 520% this year.
Bitcoin’s rally didn’t really extend to other cryptocurrencies Friday. Ethereum continued to trade just north of $300, while Ripple (XRP) consolidated a hair below 21 U.S. cents.
The cryptocurrency market’s combined market cap is roughly $173.4 billion, which is roughly $3 billion less than the Monday’s peak.
Bitcoin could be heading north of $10,000 a unit in the not-too-distant future, according to a survey conducted by CNBC. About 49% of the 23,118 people who voted in the CNBC poll said the digital currency will reach the five-figure threshold.
Roughly 16% of respondents said bitcoin prices are heading to between $6,000 and $8,000. About a third selected the Jamie Dimon option by calling bitcoin a fraud.
Though unscientific, the survey clearly shows that the mainstream is paying attention to the rapid acceleration of cryptocurrency. At least a portion of them will investigate the matter further, and likely conclude that digital assets are a welcome addition to their portfolio.
It’s impossible to associate bitcoin’s success with just one catalyst, but it’s clear that institutional support, the allure of the blockchain and favorable regulation in markets like Japan are feeding the rally. An anticipated November hard fork is also helping to shore up price.s
A Day of Milestones
Bullish sentiment also rubbed off on U.S. stocks Friday, with the Dow Jones Industrial Average extending its rally above 23,000. The blue-chip index climbed tacked on 165 points to close at 23,328.63 after the U.S. Senate passed the 2018 budget by the narrowest of margins.
The S&P 500 and Nasdaq Composite also set fresh all-time highs, with financials and industrials leading the rally.
Featured image courtesy of Shutterstock.
Cryptocurrency Analysis: Bitcoin Tests $6000 as Market Settles Down
Bitcoin is in the center of attention yet again, as the most valuable coin is knocking on the door of the $100 billion level in market capitalization. The coin touched our long-term target at $6000 on several exchanges, but it’s now trading slightly below the historic level.
While the rest of the market is quiet, BTC is very active, and it could be in for a volatile weekend, as despite the long-term overbought readings, the short-term uptrend is clearly intact. That said, investors should avoid opening new positions here, and consider lowering their exposure further, while traders should only trade with smaller than usual sizes. Support levels are found at $5400, $5000, and near the $4650 level.
BTC/USD, 4-Hour Chart Analysis
As the rest of the majors are still recovering from the recent correction, the total value of the segment is below its all-time high, with BTC’s dominance now standing at 57%. Most of the largest coins are little changed, with Monero and Liteocin showing considerable strength and IOTA still being the weakest of the majors. With all attention on BTC let’s see how the most traded altcoins look before the weekend.
Technical Analysis: Coins Recover from Sell-Off as Bulls Remain in Control
Following yesterday’s brief but deep correction, the major cryptocurrencies seem to be back on the bullish track, as Bitcoin is leading the segment yet again. With the most valuable coin’s dominant currently near 56%, trading in BTC dwarfs the other crypto markets. That said, most of the majors recovered well after yesterday’s rout, while Bitcoin itself reached as high as $5730 today in early trading, only a few percents off its all-time high.
The short-term setup is encouraging for bulls, as the coin cleared the overbought short-term momentum readings while remaining inside the rising trend. A rally towards the long-term target at $6000 is still likely, despite the stretched long-term picture. Support levels are found near $5400, around the $5000 level and at $4650.
BTC/USD, 4-Hour Chart Analysis
Ripple settled down somewhat in early trading but it turned volatile again later on, and the coin is still underperforming the broader market, while Ethereum bounced back well above the $300 level, remaining well below its recent highs. The rest of the market is modestly higher today, although NEO and IOTA are slightly lower still showing a negative correlation with the other majors. Let’s see the short-term charts after the short volatile period.
- Week In Review: Stocks Take-Off Along with Bitcoin and the Dollar October 21, 2017
- Bitcoin Hits $100 Billion as Record Rally Continues October 21, 2017
- Will Crude Oil Reach $68 a Barrel in 2018? October 21, 2017
- ICO Update: Polkadot October 20, 2017
- Daily Analysis: Stocks Shoot for the Moon as Senate Passes Budget October 20, 2017
- Cryptocurrency Analysis: Bitcoin Tests $6000 as Market Settles Down October 20, 2017
- Trade Recommendation: Ethereum October 20, 2017
- Bitcoin Cash Consolidates as Markets Search for Direction October 20, 2017
- Trade Recommendation: GBPJPY October 20, 2017
- Gold Still Beats Bitcoin, According to Goldman Sachs… But What About Price Independence? October 20, 2017
A part of CCN
Analysis1 week ago
Analysis: Bitcoin Price at $5200, How Much is There Left in the Tank?
Analysis1 week ago
Technical Analysis: Ethereum, Monero, and Litecoin Jump as Bitcoin Goes Parabolic
Analysis6 days ago
5 Things to Watch Next Week: Byzantium, Bitcoin Stretched, Gold’s Strength, The Next Fed Chair, Kirkuk and Crude Oil
ICO6 days ago
ICO Analysis: UTRUST
Cryptocurrencies1 week ago
Trade Recommendation: Monero
ICO1 week ago
ICO Analysis: Request Network
Cryptocurrencies6 days ago
Trade Recommendation: Stellar
Analysis1 week ago
Technical Analysis: Litecoin Follows Bitcoin Higher as Market Tops $165 billion