Aiming for Another Rally? Bitcoin Stabilizes and Soars
After a very volatile September, the jumpy zigzag ended, with an increase of the Bitcoin price to over $ 4000. October starts very positively, with an increase of 14% in just two days.
The volatile September is over – we start the month of October with a 14% surge in Bitcoin. This is a very positive sign. Bitcoin comes out stronger than ever and it seems to be in the midst of another rally. There is a significant increase in the popularity of Bitcoin in the global press. Lots of announcements from banks and countries implementing blockchain technology. As we previously reported here, seems like the hype is still in the air.
However, the crypto market has not yet calmed down, especially with the uncertainties surrounding the events of upcoming November – the fork regarding the New York agreement.
The august fork was like of dividend for the investors holding Bitcoin, which, after the fork, received a new coin in addition to their Bitcoin. August’s successful attempt encourages investors to hold Bitcoin in upcoming events of November. On the other hand, uncertainty may cause panic in the market.
Bitcoin had shown great survival skills, rising back above the $ 4000 line and shaking off the negative news with impressive elegance. There are still voices casting doubt on Bitcoin, but that does not seem to affect the market.
Japan, unlike China, embraces Bitcoin. The Japanese Financial Services Agency has authorized a number of local companies to operate trade services in a variety of cryptocurrencies. Japan is an economic superpower and its joining of the game on the sympathetic side is very positive and very influential.
South Korea follows China: South Korea also issued a statement that the regulator should examine the ICO issue and it seems like the Koreans are joining China. These restrictions actually sweeten the matter for participation in the ICO, since South Korean and Chinese citizens are not allowed to participate in the ICO, but can later trade or buy during price discovery on the exchanges. This allows investors from different countries, which are not restrictive, to take advantage of the opportunity to participate early in ICOs.
Awakening of Bitcoin in other countries: Dubai had issued a crypto coin called emCash. In Zimbabwe, Bitcoin reached a high of $7,200. Demand in Third World countries is on a continuous rise. In addition, the headlines about the Bitcoin ETF of the Winklevoss brothers are back.
Along with political and commercial issues, the technological field continues to be vibrant and keeps on developing. There was a disagreement among miners about how to improve transactional speed. The controversy was whether to adopt SegWit technology or to increase the block size. The New York agreement created a consensus so that SegWit will be adopted first (already happened in August) and then, in November, the block will be enlarged. Bitcoin Core version 0.15.0.1 has now been released, which greatly improves synchronization speed and also blocks SegWit X2, which supports another fork. This negates the New York agreement and leaves Bitcoin with the important improvement of its protocol – SegWit. Learn more
The Altcoins have a different story – Most of them are in a distinct downward trend against Bitcoin. On the other hand, against the dollar, most of the Alts are fairly balanced since Bitcoin is rising. There are some altcoins rising against the market sentiment, but overall the Alts is in a braking trend. Regarding NEO is recovering quickly and the coin is back almost 50% higher on the weekly chart. ZCASH the past week’s rally led to a nearly 100% rise, which was quickly corrected down, but the large turnovers show a great interest in the anonymous ZCASH project. This was also related to Snowden’s announcement that ZCASH is the alternative coin for Bitcoin.
The following graph compares Bitcoin and gold price (Bitcoin 4-hour chart, gold weekly chart).
The rise last week from $ 3,900 to $ 4,450 brought back optimism into the market. The graph is pointing upwards and currently trading around $ 4380. As reported in our previous market update, these areas carry a tough resistance and breaking it could lead towards the all-time high areas of $ 5000.
Support around 0.07BTC got broken due to Bitcoin’s uptrant. We have almost returned to the support level. The last time Ethereum touched the BTC 0.066 level, we encountered a decent support level. Interesting if it will hold this time.
Ethereum vs. USD: This is a different story. We see a double top pattern from the $ 400 zones and strong demands around $ 250. Ether had recently lost the support around $ 300 and currently trades around $ 290.
The price is fairly stable, although it is pointing downwards, but we can see in the graph the stabilization around the 4600 Satoshi level.
The coin had lost support and is aiming down at 0.093BTC right now.
BCH- USD: Support lies around $ 400 and currently holds. It seems that Bitcoin Cash value has been maintained well against the dollar, which ignites investors’ imagination about the next upcoming fork in November.
