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Bitcoin Price Shakeup Continues as Bitcoin Cash Adds 150%

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Bitcoin’s upheaval continued over the weekend, as the world’s No. 1 digital currency shed another 20% en route to three-week lows. Bitcoin Cash (BCH), the recently spawned alternative to the original blockchain, has added a staggering 150% since Thursday.

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Bitcoin Nosedives

BTC/USD was down another 12% on Sunday to trade at $5,863. Prices reached a low of $5,507 before consolidating at current levels. Since Friday, bitcoin has declined more than 20%.

At present levels, bitcoin is capitalized at $96.7 billion, according to CoinMarketCap. The coin’s market cap exceeded $125 billion at the height of its rally last week.

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Bitcoin Cash Makes Its Biggest Statement Yet

After months of mediocrity, BCH has surged into the limelight following last week’s cancellation of the Segwit2x hard fork. Bitcoin Cash was up 72% on Sunday to trade at $1,625. The coin has added more than $1,000 over the past five days.

BCH reached a high of around $2,380 over the weekend, levels that would have been unfathomable just one week ago.

Bitcoin’s latest reversal exceeds what many would call a healthy retracement following its record-setting run. The sharp swing below $6,000 suggests that the recent breakdown in price will be more sustainable as the market shifts from one extreme to the other.

BCH’s total market value briefly surpassed $30 billion this weekend, briefly surpassing Ethereum.

No Fork in the Road

The battle of the bitcoins was really no battle at all until backers of Segwit2x aborted their mission, citing a lack of consensus for the new protocol. When investors caught wind that the fork wouldn’t happen this month, they immediately loaded up on BTC before shifting gears to BCH.

Some interesting developments have happened since 2x was cancelled. For one, Bitcoin Cash’s hashrate has officially surpassed bitcoin’s, a sign that more processing power was being used for BCH.

Bitcoin’s forced split was scheduled to occur on or about Nov. 15 following months of heated dispute about scalability. The Segwit2x program was considered by many to be a strong solution to bitcoin’s block size debate. Backers of the proposed protocol believe bitcoin transaction blocks should be two times larger than current levels.

Interestingly enough, Bitcoin Cash emerged out of the same debate that divides the classic bitcoiners from those who back the new Segwit protocol. Its proponents view it as a store of value and means of exchange – something backer Gavin Andresen reminded his Twitter followers this weekend. As Christian Catalini reminded, there’s usually a trade-off between the two.

It didn’t take long for a rogue person or entity by the name of ‘BitPico’ to declare that Segwit2x would go on as planned. The group said it will carry out the fork regardless of what the broader market thinks.

As we saw over the weekend, the cryptocurrency market is highly prone volatility. Although the underlying trajectory remains up, multiple pain points continue to plague the industry. It remains to be seen whether Bitcoin Cash’s acceleration is a one-off or a sign of things to come. Previously, traders had complained that it was the bitcoin alternative’s intrinsic value was difficult to evaluate.

 

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Analysis

Bitcoin’s Record-Breaking Rally Continues as Prices Cross $8,100

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Bitcoin surged to new highs on Sunday, as the world’s largest crypto by market cap continued to generate bids following the cancellation of Segwit2x.

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BTC/USD Price Levels

The value of a single bitcoin reached a daily high of $8,110.59, its best level on record. At press time, BTC/USD was valued at around $8,002 for a gain of 4%.

With the gain, bitcoin’s market cap now exceeds $133 billion. That’s roughly $100 billion greater than Ethereum, the market’s second most valuable cryptocurrency.

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Bitcoin has added more than $1,100 over the past five sessions. It was down around $5,600 just one week ago.

Bitcoin Cash (BCH), a digital currency alternative that broke away from the original blockchain Aug. 1, was down 5.1% at $1,185. BTC and BCH locked horns earlier this month after the Segwit2x hard fork was abandoned.

$10,000 and Beyond?

Institutional clearing platform LedgerX has initiated its first long-term bitcoin futures option, which is set to expire Dec. 28, 2018. In setting up the option, LedgerX is assuming a price of $10,000 at the time of expiration. That’s a 25% premium on current levels.

Investors who buy the option are essentially saying they believe prices will exceed $10,000 by the time of expiration.

Bitcoin is being helped by growing institutional demand for the digital currency, as hedge funds, day traders and other mainstream investment outfits look to access this burgeoning asset class. CBOE and CME Group have each announced plans to integrate bitcoin into more conventional investment vehicles in the coming months.

The rush of institutional money into bitcoin is a sure sign that the digital asset class is becoming too big to ignore. The value of all cryptocurrencies in circulation has already exceeded $230 billion, with more than a dozen coins valued at $1 billion or more. Nine others have a market cap of $500 million or greater.

Coinbase Responds

The rise of institutional capital has also compelled Coinbase to introduce a custodial service targeted at account holders with more than $10 million in assets. This service targets hedge funds and other institutions that have remained largely on the sidelines of the crypto revolution.

In a recent blog post, Coinbase CEO Brian Armstrong announced that the new service will launch sometime next year.

“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely,” Armstrong wrote.

In addition to maintaining the minimum $10 million asset requirement, institutions must pay a $100,000 setup fee to gain access tot he Custodial program. In response, institutional investors will receive assurance that their assets are secure.

The Coinbase Custody website lists broad support for bitcoin, Ethereum (ETH) and Litecoin (LTC), as well as ERC20 tokens. The ERC20 protocol has emerged as the favorite for startups launching initial coin offerings (ICOs), a controversial crowdfunding model that has already overtaken early stage venture capital.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists

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Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.

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BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.

BTC/USD, Daily Chart Analysis

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Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.

DASH/USD, Daily Chart Analysis

The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.

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Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

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The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

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Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

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