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Bitcoin Prices Rebound as Crypto-Market Shows Signs of Stability

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Bitcoin prices swung higher Thursday, as a sense of calm returned to the cryptocurrency market following a prolonged period of volatile moves.

Bitcoin (BTC/USD) was trading near session highs at 12:55 BST, having gained 8.5% to $2,457.14, according to Bitstamp. Prices opened at $2,294.41 and have been trekking higher ever since.

At its current valuation, the bitcoin market is worth $40.25 billion on supplies of roughly 16.46 million.

It has been a wild couple of months for the cryptocurrency market. After reaching an all-time high in mid-June, bitcoin corrected 20% as the debate over scaling came to a head. For now, it appears that the majority of the blockchain community (by hash power) has agreed to adopt the SegWit protocol, which should be enough to avoid a hard fork and eventual chain split on August 1.

Goldman Sachs says bitcoin is poised to re-test the $3,000 level and could go as high as $3,700 in the not-too-distant future. In a note to clients, head of technical strategy Sheba Jafari said the digital payment system’s recent swing lows have the potential to “act as strong support” in the short term. She added that “the balance of signals appear to be shifting more to a positive tone.”

Just two weeks earlier, Jafari predicted a large drop in bitcoin as prices retreated from record levels. Bitcoin has been the world’s best-performing currency in six of the last seven years.

The total market capitalization for cryptocurrencies was back above $83 billion on Thursday after plunging to $60 billion over the weekend. Ethereum was up more than 10% during early-morning trade. Litecoin was down roughly 1%.

BTC/USD

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 662 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Analysis

Bitcoin Cash Continues To Drop Ahead Of The Hard Fork

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The past few months have been really quiet in the crypto world.  Traders are used to dealing with big stories and big drama.  And while there hasn’t been much drama over the past few months, that’s all about to change.  Bitcoin Cash (BCH) has had a crazy 30 days of trading ahead of its scheduled hard fork on November 15.

For a while, it appeared that BCH would be trading near a high as the fork commenced.  BCH had a strong rally for about a week starting on November 1.  The price soared by more than 50% as it reached its high of approximately $637.  But over the past week, the price has been tanking and doesn’t show any signs of recovering.  Since November 7, BCH has dropped in value by more than 20%.

Why Is Bitcoin Cash Falling Ahead of the Fork?

There are two possible explanations for why Bitcoin Cash is dropping ahead of the scheduled hard fork.  One reason is profit taking.  Although a 50% return wouldn’t have meant much in 2017, it certainly is a lot in 2018.  However, a second and potentially more troubling reason is the conflict between Bitcoin Cash SV and Bitcoin Cash ABC.

Craig Wright, an Australian computer scientist and the biggest proponent of Bitcoin Cash SV (BCHSV), appears to be at war with Roger Ver, the most famous name behind Bitcoin Cash ABC (BCHABC).  Wright was in the news recently after proclaiming to be Satoshi Nakamoto, the founding father of Bitcoin (BTC).

As of this writing, BCHABC is trading at $420 while BCHSV is trading at $118.  According to Coin Dance, data shows that a majority of hash power favors SV.  On the other hand, there are significantly more BCHABC nodes running on the Bitcoin Cash network than there are BCHSV nodes.  Although it’s interesting to look at this data, it’s quite simply impossible to determine what this means as far as which network will come out victorious.  Creating a BTC node is relatively inexpensive so a user could start several of them for under $1,000.  And while the hash rate is important for demonstrating PoW (proof-of-work), it’s meaningless if exchanges don’t accept the coin.

Bitfinex Support

On November 12, Bitfinex announced support for the Bitcoin Cash hard fork.  On the exchange’s twitter handle, they tweeted, “We are happy to provide full support for the upcoming Bitcoin Cash hard fork.”  While the support is certainly helpful for traders, Bitfinex wouldn’t commit to choosing a side.  Instead, the exchange said, “At the time of writing, we do not believe that there is sufficient consensus to identify a clear winner in the Bitcoin Cash hard fork.”  Bitfinex expects to release an additional statement on November 16.  Traders should certainly pay attention to that as it could be material.

Final Thoughts

There is an incredible amount of information to digest regarding the hard fork.  As of this writing, it’s unclear which side will prevail as both certainly have their positives and negatives.  Given the recent slide of Bitcoin Cash, BCH holders should certainly be paying very close attention as the hard fork nears.

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.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Bitcoin

Bitcoin Price Showing Wide Variance on Major Exchanges Tuesday

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The price of bitcoin declined on Tuesday, though the extent of the fall and subsequent consolidation depends largely on the exchange one is using. Bitcoin’s quoted value differs by more than $150 on Coinbase and Bitfinex, two of the world’s leading exchanges.

BTC/USD Update

Bitcoin clocked a new two-week low on Coinbase Monday, as prices bottomed near $6,250. At the time of writing, the quoted price for BTC/USD on Coinbase was $6,286, a decline of 1% from 24 hours ago.

The leading digital currency continues to enjoy a large premium on Bitfinex, where prices were trading near $6,450. The large premium paid on Bitfinex may reflect the poor price performance of USDT, a controversial stablecoin that is used to buy bitcoin. USDT fell 0.6% on Tuesday to $0.9879. A selloff of Tether’s stablecoin was largely responsible for bitcoin’s sudden spike last month, which produced large premiums on Bitfinex, an exchange with heavy USDT turnover.

Bitcoin’s average price on Tuesday is $6,371, according to CoinMarketCap. Daily trade volumes are holding strong at $4.6 billion. Derivatives trading continues to be one of the more popular methods of accessing the bitcoin market. BitMEX,  a popular derivatives platform, processed nearly one-fifth of bitcoin’s total volume on Tuesday.

Bitcoin Maintains Stable Trading Range

Although bitcoin has exhibited more weakness in the last five days, overall trading patterns have remained stable, underscoring the sharp drop in volatility seen throughout the year.

Bitcoin’s 30-day volatility index, which measures daily fluctuations for the digital currency, plummeted to 1.03% on Tuesday, according to Bitvol.info. That’s the lowest level in over two years. As the following chart illustrates, bitcoin’s volatility over time peaked at two-year highs in February but has been declining ever since.

Lacking any major trading catalysts, bitcoin continues to find support in the low $6,000 price range – a region that is normally associated with mining costs. According to analysts, market participants should keep a close eye on $6,200, as this not only signals a bearish breakdown for bitcoin but the broader market as well. That’s because bitcoin continues to exert a magnetic pull on the broader market.

In terms of fundamental developments, market participants are looking ahead to the launch of Intercontinental Exchange’s Bakkt trading platform next month. The first product to be launched on the platform will be a physically settled bitcoin futures contract, offering institutional investors new ways of accessing the digital currency market.

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.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 662 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Analysis

Crypto Update: Selloff Continues Despite Another Pop Higher In Ripple

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The cryptocurrency segment continues to trade under clear selling pressure, with most of the majors drifting higher for several days now. Volatility remains low, with light trading activity across the board, and even the most bullish currency, Ripple being in a choppy period despite the periodic burst of activity.

XRP/USDT, 4-Hour Chart Analysis

While the overall picture in the segment is still overwhelmingly bearish, Ripple remains on a short-term buy, and it managed to recover above the key $0.51 level yesterday following a very quiet but bearish weekend. XRP still faces strong resistance near $0.54 and $0.57, and our trend model is only neutral with regards to the long-term time-frame.

Support below $0.51 is found in the key zone between $0.42 and $0.46, and although the broader trends in the segment warn of the continuation of the bear market, traders could still play the short-term trend.

BTC/USD, 4-Hour Chart Analysis

On a negative note for bulls, Bitcoin has been showing weakness in the past days, and now, the most valuable coin is back near the $6275 support level, threatening with a crucial move towards the $6000 level and possibly the key long-term zone near $5850.

The coin is still on a neutral long-term signal, while being on a short-term sell signal, but a move below the long-standing trading range would be a bearish signal for the whole segment. Traders and investors should still not enter new positions here, with strong resistance levels ahead at $6500, $6750, and $7000.

Stellar Relatively Strong Amid Broad Altcoin Decline

ETH/USD, 4-Hour Chart Analysis

Ethereum continued to drift lower towards the $200 support/resistance level that has been dominating trading for months now, as the second largest coin is still stuck in a steep long-term downtrend. The coin turned lower last week before triggering a short-term buy signal, and now, it’s on the verge of a renewed sell signal, given the weakness of the recent days.

Traders and investors should still stay away from ETH, until at least a short-term trend change, with strong resistance zones ahead near $235 and $260, and with further support found at $180, $170, and near $160.

LTC/USD, 4-Hour Chart Analysis

Litecoin continues to be one of the weakest of the majors, and it fell below the $51 support level again following last week’s failed rally attempt. LTC is on sell signals on both time-frames, and a test of the bear market low near $47 seems likely, with a possible drop to the next major support zone near $44 in the coming weeks. Further resistance levels are ahead at $56 and $64 and traders and investors shouldn’t enter positions here.

Stellar/USDT, 4-Hour Chart Analysis

Stellar remained strong from a technical perspective despite drifting lower together with the broader market. While the coin failed to exit its long-standing trading range, the short-term uptrend remains intact, and it is well above the crucial support/resistance zone surrounding the $0.24 price level.

The coin is trying to form a short-term swing low near the $0.2650 support, and despite the bearish segment-wide trends, traders could play the short-term trend here, with resistance zones ahead near $0.2850, $0.30, and between $0.3325 and $0.3475.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 393 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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