link588 link589 link590 link591 link592 link593 link594 link595 link596 link597 link598 link599 link600 link601 link602 link603 link604 link605 link606 link607 link608 link609 link610 link611 link612 link613 link614 link615 link616 link617 link618 link619 link620 link621 link622 link623 link624 link625 link626 link627 link628 link629 link630 link631 link632 link633 link634 link635 link636 link637 link638 link639 link640 link641 link642 link643 link644 link645 link646 link647 link648 link649 link650 link651 link652 link653 link654 link655 link656 link657 link658 link659 link660 link661 link662 link663 link664 link665 link666 link667 link668 link669 link670 link671 link672 link673 link674 link675 link676 link677 link678 link679 link680 link681 link682 link683 link684 link685 link686 link687 link688 link689 link690 link691 link692 link693 link694 link695 link696 link697 link698 link699 link700 link701 link702 link703 link704 link705 link706 link707 link708 link709 link710 link711 link712 link713 link714 link715 link716 link717 link718 link719 link720 link721 link722 link723 link724 link725 link726 link727 link728 link729 link730 link731 link732 link733 link734

Bitcoin Price Calm Before the Storm?

Bitcoin Price Calm Before the Storm?

Bitcoin Storm

After a 2 month rally leading to all time high prices, Bitcoin has finally reached an equilibrium. The price has been bouncing between $1500 and $1600 since Friday, and as Monday came along it seems that the market is still unsure of its next move. Some of the pullbacks may be attributed to Ripple’s exceptional rise in the past couple days as its market cap reached $8.3 billion — almost as big as its closest competitor Ethereum. No one is sure why Ripple’s price has more than tripled in the past week rising from a price of $0.05 to more than $0.22. Kiritoflash 

Reddit claimed:

Well, over $4,000,000,000 (Four-Billion Dollars) was put into Ripple in the past week [] That is a lot of money to invest.

Furthermore, there are rumors on bitcoin talk speculating that the Ripple team is looking to lock down a huge amount of coins for as much as a decade:

“Rumors are dense about Ripple releasing an extensive lock-up agreement spanning a whole decade and more”

 

Supposedly, the team will reveal more info at the upcoming Consensus event hosted by Coindesk. The combination of this gossip along with an HODL mentality from the Ripple investors is more than likely the reason behind its astronomical rise.

How does Ripple’s rise affect Bitcoin?

While there is no direct correlation between Ripple and Bitcoin, the fact that the number three crypto more than doubled its market cap and became one-third that of Bitcoin may have made some Bitcoin investors uneasy. However, it is still impressive how resilient Bitcoin’s price has been even after the massive bull run. The current political turmoil surrounding Brexit, and the tensions between the US and North Korea has created a market for smart money looking to hedge on these events. As a result, it looks like crypto as a whole is experiencing a second wave of investments flowing into the ecosystem. We can see evidence of that if we take a look at cornmarket cap's chart of overall market capitalization:

  

We can clearly see in this chart

exponential growth in an overall market cap for all cryptocurrencies. To support that rise, we are also seeing the significant increase in trading volume to a level never seen before. Keep in mind that anybody who bought and held bitcoins in the past eight years is seeing the significant return on investment, so if you are looking to buy into crypto right now you may want to tread lightly.

What does the Future hold for Bitcoin’s price?

As discussed in our previous article, since current Bitcoin price is outside of any previous price levels it is hard to analyze the market. Users have been resorting to using Fib Retracements to predict future market action. Using the $1623 high and the $1426 low, the Fib Retracement predicts a next resistance level of $1700. According to the charts, there is also strong support at $1500 that has already been tested multiple times over the weekend. As the week progresses we will see if Bitcoin will be able to break past $1600 and test the higher resistance levels, otherwise, expect the price to stay in the $1500 until the next wave of volume comes along.

Since the amount of volume is similar from the time Bitcoin’s price rose from $1300 to $1600 to the past few days where the price has been bouncing between support and resistance, suggests that the bear and the bulls reach a stalemate and are violently trading back and forth trying to decide who will win. The price can keep on climbing astronomically or crash if the bears take the lead. The sideways trading over the past three days and the relatively high volume may be a sign that some major price action is incoming. Right now would be a good time to remind investors to never trade with more than you can afford to loose, as the consequences of a bad trade can catch up with you rather quickly.

Chuck Reynolds
Contributor

 

Alan Zibluk Markethive Founding Member