Bitcoin Price Weekly View
If one were to ignore the scaling debate this week and focus the attention entirely on cryptocurrency markets, one would notice last week’s bitcoin price movements were just as hectic. Currently, the price per bitcoin is US$990, after losing roughly $70 dollars in value over the past 24 hours. Just one week ago, on March 16, bitcoin’s price was coasting along at $1,215-1,235 per BTC – but it took a significant dive the following day. The bearish downturn continued until March 18, hitting a low of $950 per BTC, which turned out to be the week’s price floor so far.
After the dip, the price started to ascend upwards once again, climbing above the 4-digit range. On March 21 bitcoin’s rising price reached $1,115 but subsequently took another downturn over the course of the next few days. At present technical indicators are showing sellers are in control of the market. The price is moving down to support lines as the psychological 4-digit range seems to be broken leading to the current bear market. The support line is strong in the $870-890 range, and its likely buyers are waiting for this position. The 100 Simple Moving Average (SMA) is lower than the 200 SMA showing the seller’s market may continue until a new price floor is found.
This Week’s Headlines
During most of the week a vast majority of bitcoiners have been discussing the scaling debate and the possibility of a hard fork. Many conversations on both sides of the block size debate have seen increased tension and animosity. This week a good portion of well-known bitcoin exchanges have detailed their contingency plans concerning a possible hard fork in the near future. Lots of bitcoin proponents believe a fork could happen soon and have begun discussing all the possible variables of a blockchain split event.
In other news, the recent rejection of the bitcoin exchange-traded fund (ETF) is being disputed by the Bats BZX Exchange. The organization is petitioning the U.S. Securities and Exchange Commission (SEC) to review its disapproval decision. Bats is looking for specific findings and factual evidence concerning the reasoning behind the ETF rejection. SEC initially detailed they had denied the ETF because of regulatory concerns.
Altcoin Markets
Last week Bitcoin.com reported on the rise of many alternative digital token capitalizations and the significant increase in cryptocurrency daily trading volumes. Overall cryptocurrency markets reached a high of $1 billion in trade volumes per day this week and currently rests at over $700 million, at the time of writing.
Quite a few individual cryptocurrency markets experienced exponential price rises this week with altcoins like Ethereum and Dash having field days. Ethereum is currently trading at $47 per ether and is capturing $200 million in daily trade volume. Some have speculated that Ethereum’s spike may be due to the darknet marketplace (DNM) Alphabay adding ether to the DNMs payment options.
While many commenters have been highlighting the rise of the number three cryptocurrency Dash, the altcoin Ripple has suddenly leaped forward. This, the fourth highest valued token, has seen a significant 25 percent price increase and may soon be valued at one cent per unit. Other altcoins on the top ten list such as Ethereum Classic, Monero, and Augur have seen a few price spikes this week as well. Some believe Augur’s price is being pushed by the sudden Ethereum market uptrend due to its collaborative relationship.
Overall the entire market capitalization of all the existing cryptocurrencies combined has increased to over $23 billion. However bitcoin’s market dominance, the total amount of market share BTC holds compared to all the other alternative digital assets, stands at its lowest point ever. In fact, altcoins now hold more than 30 percent of the total market share, with bitcoin only grasping 68 percent of the entire market capitalization value.
The Verdict
Traders playing scalps and breaks will do well with bitcoin’s price volatility as the market has plenty of room for intra-range strategies. Leading exchanges which offer futures options show quite a few more ‘short’ contracts than ‘long’ contracts as the bear market continues. At the moment bitcoin’s price is down 6 percent, but volume is holding strong with over $300 million in 24-hour trade volume. Currently, technical indicators show the market is uncertain and bitcoin traders should expect continued volatility.
Bear scenario: The downtrend could lead bitcoin’s price to a low of $870-900 per BTC with a possible uptrend at that support line. At the time of writing it is a seller’s market and the currency’s fall below the psychological $1,000 range is not a good sign.
Bull scenario: Bitcoin’s price could hold at the current $990 range and see a price upswing after some relatively stable sideways action. In the short term, if buyers regain some control, market prices could once again break the 4-digit range.
