Markets Update: Bitcoin Rallies While Traditional Assets Tumble Worldwide

The price of bitcoin is on fire as the decentralized currency has hit another all-time high of $3,550 across global exchanges on August 11. Bitcoin has relentlessly increased in value while global markets have been extremely volatile, shaking the valuations of traditional assets worldwide.

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The Honeybadger’s Value Climbs Relentlessly as Traditional Global Assets Falter

As the global economy has been rattled by a sinking U.S. stock market and the cold war-style quarreling with North Korea, the digital currency bitcoin has risen exponentially in value. Wall Street’s DOW average dropped 200 points, and Asian markets slumped considerably due to the global tensions with North Korea. Even rising tech stocks like Nvidia and Alibaba shares plunged in value on Thursday.

Markets Update: Bitcoin Rallies While Traditional Assets Tumble Worldwide
Asian markets, Nasdaq, and the DOW slump big time on Thursday.

Throughout all of the economic uncertainty, the honey badger of money couldn’t care less. At the time of writing, one bitcoin is averaging $3,530 across global exchanges like Bitstamp, Huobi, Korbit, and Bitflyer. The cryptocurrency commands a significant trade volume of over $1.7B worth of BTC over the past 24-hours and currently captures a $58B market capitalization. A majority of BTC trade volume stems from countries like Japan, the U.S., China, South Korea, and India.

Markets Update: Bitcoin Rallies While Traditional Assets Tumble Worldwide
Bitcoin price August 11, 2017, at 11:30 EDT.

Technical Indicators

Bitcoin markets already climbed to a high of $3,490 across global exchanges on during the overnight on Tuesday, August 8. Bulls started showing some exhaustion while intra-range strategists and day traders took some profits throughout August 10-11. The reversal saw bitcoin hit a low of $3,180 but subsequently, the price jumped back to $3,300 an hour later. At press time, the 100 Simple Moving Average (SMA) and the long term 200 SMA are crossed in unison. The 100 SMA still hovers slightly above, indicating the bull run might continue on the upside.

Markets Update: Bitcoin Rallies While Traditional Assets Tumble Worldwide
100 and 200 SMAs are crossed meanwhile Bitstamp order books show heavy resistance in the $3,600 range.

Stochastic is back heading north as the indicator was showing strong sell-offs on Wednesday and Thursday. Now both the Relative Strength Index (RSI) and Stochastic are flat proving right now the cards could be in anyone’s hands. Order books show a lot of placed orders in the $3,600 range, so there will be some resistance in this territory. Most traders are betting ‘long’ at the moment, and Fibonacci extensions show a target of $3,740.

Bitcoin In the News

Bitcoin has been in mainstream media headlines quite a bit over the past two weeks, with stories about the spiking price and the currency’s recent hard fork. Mainstream journalists from Bloomberg, the Wall Street Journal, CNBC, and the New York Times have been extremely positive about bitcoin as multiple reports are published daily. The news outlet CNBC, in particular, has favored bitcoin in editorials and the station’s financial video segments. This week on CNBC’s ‘Fast Money’ financial investor, Thomas Lee of Fundstrat Global Advisors, said he believes bitcoin could outperform gold and U.S. stocks. Lee stated that if bitcoin commands roughly five percent of alternative asset markets, then one BTC could easily be $25,000 to $50,000 in the future.

Markets Update: Bitcoin Rallies While Traditional Assets Tumble Worldwide

When Lee was asked by the ‘Fast Money’ panel if he had to choose between U.S. stocks or bitcoin this year, Lee said bitcoin was a clear choice stating;

“I think Bitcoin is an under-owned asset and the potential for huge institutional sponsorship is coming — Between now and year end, it’s easily bitcoin.”

The Verdict

Bitcoin has done considerably well since the chain bifurcated into two on August 1 creating the token called Bitcoin Cash (BCH). At the moment the bitcoin cash market shows one BCH is roughly $340 indicating both markets seem to have little correlation right now. In approximately two weeks Segregated Witness (Segwit) will activate on the network and bitcoiners will once again prepare for another possible hard fork this November. However, bitcoin markets are on a tear, and don’t seem to be shaken by the fear, uncertainty, and doubt (FUD) being spread across social forums.  

Bear Scenario: Currently there’s a strong floor within the $3,200 range so if a reversal happens bears will aim to test this key zone again. The price has only been above the $3K territory for a short period, but could quickly drop below if panic selling ensues. Both SMAs are still crossed, and a downside could be in the cards if bulls get exhausted.

Bull Scenario: If bulls manage to break the $3600 resistance then the price could easily command a $3,650-3,700 value in the next couple of weeks. There’s a lot of active elements happening within the bitcoin economy and countries like India, and South Korea may be on the verge of legalizing the cryptocurrency as a form of payment. Many traders, analysts, and experts think that a price of $4K and above per BTC could easily happen by year end 2017.

What do you think about the price of bitcoin? Do you see a dip coming or do you see the bull run continuing higher? Let us know your thoughts 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 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, Yahoo Finance, CNBC, and Bitstamp. 

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  • At some point, we have to conclude this is not a bullrun, it is nature. We have to ask, is this a currency with true resiliency? How long should the climb exist before the world full of doubt embrace and shift to securing under Bitcoin? Does it really need to be the Berkshire Hathaway peak before it is concluded?

    • Dr. Bubó

      This kind of questions, this sentiment usually signs the top of the bubble.

      • I am looking for it. Everyday my eyes are glued on the markets. Today was a great day for transiting a little to Gold. I moved during this advantage and looking to test the water a little more later. It is natural to hedge and take a little off the table in high times.

      • Robert Miller

        Or it signifies the point he’s making, when isn’t it a bubble and it _is_ the new reality. Fiat is decaying before our eyes, people are fleeing to safety.

        • Dr. Bubo has good points. I feel the rise is supported by value not just speculation. More outlets for spending BTC and exchanges getting better at treating customers well, noted seizures revealed an educated class. BTC blockchain transaction delays and fees are down from the highs before the 8/1 fork. Blockchain congestion volume is alleviating in quicker cycles could mean more nodes as I see completed transactions have risen. I have miners in and out of pools and I have noticed higher valued blocks coming through more often. It has been about three days since I have seen a flat 12.5BTC block. The past three days the average has been around 14BTC per block. Those are things I look at including the market in USD, CNY and EUR. There has been consistency. I agree it is a blackout climb, I am looking for a flattening or table for larger period. Unfortunately, BTC will be tested again in November with Segwit2k. I think most people see off-chain technology as helpful in either case of fork or not. Bus”y”ness is high around BTC and devs included, but I think it is well founded not over speculative. Your point on Flight is not unfounded. I just think there is good reason.

          • sjs

            Dude, you’ve had a relapse. 😉

          • Boom!!!…goes the Dynamite…fingers got itchy

          • Russell Spears

            It appears Bitcoin has a radically different experience of hard Forks if the last one is any indication I think the prospect of another Bitcoin hard Fork makes everyone excited not scared..

            Far as I’m concerned it’s free money and the world gets to see why it is we value Bitcoin once more

      • Hocky Krack

        Yup, when guys are partying and foaming like this, my neck hair rise up. Top of the bubble comes to mind. Talkin about FIAT vanishing is one thing. It will stay with us who knows even longer than cryptocurrencies. But there is FIAT and FIAT, right? BAD FIAT will vanish. Like Zimbabwe Dollar and the likes.

    • Robert Miller

      You are correct sir! This is the beginning the transition from fiat currencies to cryptocurrencies right before our eyes.

      • Loving it, the news around the globe is heartening. I think great things will come when we remove the central authority and state controls. This happens with use regardless of restriction, the great wave of acceptance. Onward!

        • sjs

          Watch it, the men in the white coats (or blue uniforms) will come and get you. 😉 PS size of you replies finally matches the scope of my attention span. You could become a billionaire on Steem given your war and peace style commentary. 😉

          • meltorgamblor

            I noticed his walls of text got smaller as well 🙂 I read them, but the new P. Little style is much more digestible.

          • sjs

            Didn’t last long – see below 😐

          • I still have ammo for regulators :))

          • sjs

            I thought as much 😉

  • The Bitcoin market is becoming an option for fund managers, albeit in relatively small amounts (for therm) as they continue to search for value in a market where political risk is high – and the stock markets are becoming overpriced. We are very close to the tipping point where funds will not be viewed as the mavericks for owning Bitcoin, but those who do not will come in for criticism for being behind the times.
    What is equally positive for the market is the demand being generated as a security option to fiat currencies in many of the world’s countries that rely on remittances as a major source of revenue. The basis of sending Bitcoins, at virtually no cost, rather than transferring fiat currencies at high costs (over 10% in many cases) and poor exchange rates is becoming clear. How we manage the flow is important, but if done well this can add another multiplier to demand, both of Bitcoin and Ethereum, where social programs can be incentivized with financial rewards.