TL;DR volatility returns, with gradually increasing volume?
After last week’s promising breakout, bitcoin took a dive and is now back within its range. With the failure to make higher highs, we’re back to the previous rules: resistance at $6,400 and $6,200, with $6,000 being the established demand zone. Should the price drop to ~$5,700, we’d say it’s time to short – as ever, though, do your own research.
At the time of writing, BTC stands at $6,275. Volume is up a little; while it’s still pretty lacklustre, the direction of travel is right at least. Coinmarketcap is showing aggregate volumes into the $4 billion range (check the Historical Data tab for Bitcoin). While we’d like to see figures much higher, a large proportion of the last three months have seen lower volumes than that.
Meanwhile, BCash is retracing hard after its pre-fork pump, which looks like nothing more than your traditional crypto P&D. It seems that this event may have brought some interest to the overall crypto space, as traders purchased BTC to buy BCH – which are now being sold again. Craig Wright has stated his aim to kill BCH entirely. He claims he has over 50% of network hashrate at his disposal, meaning he could destroy BCHABC (Ver and Wu’s chain) and ensure his own BCHSV survives. Needless to say, the futures market has been volatile, and given that Wu has a lot of Bitmain hashrate to draw on, it could all get very ugly. Wright has threatened legal action of Wu moves Antpool hashrate to counter-attack.
Just another day in crypto. Most likely we’ll need to wait until after the fork happens and all of that mess plays out before the situation for BTC itself becomes clearer. You can read our rundown of the BCH fork debacle here.
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