Markets Update: Bitcoin Price Jumps Higher as Protocol Changes Approach
Bitcoin markets are having another eventful run since our price report last week. At the time bulls had pushed the price back up above the $2500 territory after bitcoin markets were sliding downwards. This week the decentralized currency is rallying hard as the price per BTC has ricocheted higher to a max of $2825 across global exchanges.
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The BTC Buyers Market Continues
Even though there is uncertainty in the air concerning the possibility of a fork next Tuesday, bitcoin markets are looking very optimistic. At the time of writing the price per BTC is hovering around the $2730-2760 range and markets are pushing 24-hour trade volumes of around $1.3B. With buy pressure still steaming we may see some more upside targets in the near future. Bitcoin’s price has jumped upwards about 10 percent over the past 12-hours while many altcoins are seeing price dips. This has led to the index that measures the market share of bitcoin compared to all cryptocurrency market capitalizations, Bitcoin Dominance, lifting back up past the fifty percent range while many of the leading altcoin markets flounder.
Technical Indicators
Bitcoin charts show that after last night’s high of $2825 per BTC there was some substantial profit taking and sell offs. The 100 Simple Moving Average (SMA) is still under the long term 200 SMA, but looks like it might cross hairs in the next hour or two. Fibonacci extensions show some bullish signs as price points could lead to the $3000-3500 range at full extension. Order books and depth charts on popular exchanges like Bitfinex, Bitstamp, and Kraken show massive sell walls past the $2800 territory. This means it’s going to take some time to eat through this resistance unless some of the walls are illusionary. Both the Relative Strength Index (RSI) and Stochastic have changed courses this week this time moving up. If nothing negative happens over the next few days then surpassing the $3K all time high is a possibility.
The Top Ten Cryptocurrency Markets
The top ten digital assets according to market cap indexes reveal most altcoins are in a slump. The second highest valued market cap commanded by Ethereum (ETH) is down 5 percent with a price of $190 per ETH. Ripple (XRP) markets are sliding as well, and the digital token is roughly $0.16 at the time of writing. The next seven altcoins are also in the red with Litecoin ($40), NEM ($0.16), Dash ($180), Ethereum Classic ($14), IOTA ($0.25), and Monero ($43). It’s worth noting the top ten altcoins have a newcomer joining the ranks as EOS has slid into the tenth position at $1.90 per token.
Community Sentiment and Bitcoin Headlines
The past week has been filled with people talking about a bitcoin fork on August 1 and the possibility of a new token called ‘Bitcoin Cash.’ Next Tuesday there may be a user-activated hard fork that bifurcates the Bitcoin blockchain into two, and everyone who possesses BTC keys will also have access to these tokens shortly. Currently, the Chinese exchange Viabtc is already trading Bitcoin Cash (BCC) future markets, and the token hit an all time high of $900. However, since then the futures market has slid to a low of $350 per BCC, at the time of writing.
In addition to the chatter about hard forks and Bitcoin Cash, the Segwit2x plan is still going forward as planned. There’s approximately 1832 blocks remaining until Segwit goes live on the Bitcoin network. A lot of people have attributed this progress to the price rise and of course, have blamed the dips on blockchain split uncertainty. The company Bitpay is confident in the Segwit2x progress and believes the hype about network disruption is a bit exaggerated. Bitpay will remain operating on August 1st unlike a vast majority of bitcoin-based businesses who will suspend services.
Bear Scenario: Since yesterday’s breach past the $2800 range traders took some profits, and the price is hovering below that territory. With the upcoming consensus changes the price is sure to be volatile leaving plenty of room for certain traders to make good on scalps and breaks. At the moment there is a strong floor between the $2400-2500 range, but if a fork happens, there maybe a lot of sell offs. Further, the price could hold until after many exchanges come back online and possibly dump hard after that. The next few days will be interesting, to say the least.
Bull Scenario: At the moment the bulls are trying to break the key resistance points above $2800 but as we said above sell walls are huge. If buyers can break past this territory and keep the momentum going — $3K or higher per BTC is not out of the question. Fibonacci extensions show a good jump into the $3000-3500 territory could be in the cards if nothing considerably bad happens between now and Wednesday, August 2nd. The price is consolidating at the moment and may push higher over the course of the next 24-hours.
How do you envision the price over the next few days? Do you see it going higher or lower due to August 1? Let us know what you think in the comments below.
Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Images via Shutterstock, Bitcoin.com, and Bitstamp trading view.
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