The planned fork of Segwit2X was canceled, the controversy behind the fork which surrounded us since the New York Agreement has ended. At the time the message and information about the cancellation reached the market, Bitcoin exchange rate rose quickly up to the price of $7888 on Bitstamp exchange. At this point, many short positions were opened for Bitcoin, which caused the price to lose stability – within a very short time, the fluctuations were $800 quick drop in Bitcoin’s value, until it stabilized at around the level of $7100. At the same time we also saw serious hype beginning to build around Bitcoin Cash.
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For those who don’t remember, Bitcoin Cash was created as a result of the fork which occurred in 1st of August this year. Our guess is that the hype of Bitcoin Cash in the market and traders who were expecting the Segwit2X fork, shifted buyers to Bitcoin Cash. At the same time, we saw several altcoins starting to creep up in their Bitcoin’s price, coins such as Dash, Ethereum , Monero and others. But in the end, the one that stole the show was Bitcoin Cash, whose price rose by 10 times in less than a month!
This caused the miners to focus on Bicash, or Bitcoin Cash. There was a very significant impact of the above events on Bitcoin, which continued to fall to the low price of $5,555. There was a feeling that Bitcoin was threatened by a new competitor (Bitcoin Cash). Bicash reached at it’s peak 0.5 Bitcoin. Right now, we are at the stage of balancing the market after a strong correction of around 30% and a decrease of 70% from the peak price of Bitcoin Cash.
In the past few days, we can identify a high correlation between Bitcoin and Bitcoin Cash. It will be interesting to keep an eye on what will be to come. In addition to the events, Bitcoin Gold is soon to be launched and we will finally know the true value of the new coin.
Altcoins have been fluctuating in their prices because of Bitcoin’s correction. Most of the prices went up, but gains slowed in recent hours after Bitcoin’s price increased back to $6,700. Market size of crypto (Total Market Cap) is still hovering around 200 billion dollars, it seems that the money stayed in the Crypto, and didn’t go away after the cancellation of the fork.
This week we actually witnessed the fight for the title of who is “the real Bitcoin”. The action was led by people with a lot of power in the industry such as Roger Ver, the well known Bitcoin investor, as well as Jihan Wu, the founder of Bitmain, one of the world’s leading manufacturers for mining equipment. It was accompanied by aggressive marketing in social networks and created a lot of confusion among people. The idea was to make them think that Bitcoin Cash is “the real Bitcoin”.
It also reflected the fear of many crypto traders who were afraid to miss a possible flip between Bitcoin and Bitcoin Cash (which did not happen in the end… so far). Also, there are theories that there were deliberate attacks on Bitcoin’s blockchain. These attacks (which were performed by broadcasting a large number of transactions to the Bitcoin network and by shifting over significant mining power to Bitcoin cash) caused a significant decrease in transaction verification time on Bitcoin’s blockchain and a sharp increase of the transaction fees. This is another factor that could cause people to think the original Bitcoin is not working as it should work, and hence, need to be replaced. As it looks for now, the original Bitcoin is still the king of the hood. Market movers and the supportive community in the meantime showed that despite the transition of miners moving to Bitcoin Cash, the original Bitcoin still remains the market leader of Crypto.
BCH_BTC_correlationMore news from past week:
An article which summarizes the fork cancellation of Segwit2X.
The program of CME for Bitcoin’s contracts in the stock exchange.
Tether had increased its supply by 20%.
The correction started at a price of $7888 down to the price of $5555. The resistance lies around $6900. In the past hours, Bitcoin was traded around the price of $6,300, and is suffering from high volatility at the moment. The stabilization above $6000 in the graph looks healthy and overall the direction is towards an uptrend. We can estimate that the support price of around $6000 will be tested in the short period of time.
Against Bitcoin, Ethereum price rose with a positive trend. We can see Ethereum has risen in recent days with resistance around price of 0.055BTC, and got supported around 0.047 BTC. Overall, the coin has stabilized against Bitcoin.
Against the dollar, the ETH market seemed hungry for the next level of $400. Now price is stable around $300, with minor fluctuation. ETH looks stable against the dollar.
Bitcoin Cash (BCH)
The surprise this week came with a pump from Korea. This pump has swept over the market and the big whales. This planned move has caused the price of Bcash to skyrocket.
Compared to Bitcoin’s price, Bitcoin Cash sprang up to the price of 0.427BTC on Bittrex, which was a crazy leap that has affected the market. In the past few hours we have seen a decline with a low of 0.15BTC.
This is actually a very strong correction, from what we’ve gathered by looking the graph, the price is having an inverse correlation against Bitcoin. The coin is now trading at a price around 0.22BTC.
Against the dollar, the increase was huge as well. The price reached $2500 on Bittrex, and a sharp correction back to $1000. The coin is now trading around the price of $1,300. Jumping from $600 last week, for those who remember these prices.
This week, we have noticed that the graph of ZenCash (forking off from ZClassic which we discussed on previous updates ) is on a rise and gained positive momentum recently, with high volume. Looks like the support level is around 0.003BTC. Resistance level is around the price of 0.004BTC.
Against the dollar, the support is around $16