The raging Bitcoin bull run is widely expected post-Segwit activation. However, the momentum and speed the BTC price is moving is more vertical than I had ever imagined. Is BTC fast tracking to the target 2017 price of 5,000 predicted by many market experts? Or the Bitcoin bubble is finally near, the crash is coming? Will altcoins boom to follows as usual after Bitcoin?
Let us see the overall market latest,
Bitcoin Market Latest
The Bitcoin reached another new milestone, the price surpassed $4,000 marks for the first time. The BTC/USD price recorded as high as 4,126 on Coinbase data. The highest transacted price was done at 4,394 on OKcoin exchange.
This pushed the entire cryptocurrency market cap to $135,309,893,315 with 24h Vol: $6,101,395,363. Meanwhile, BTC dominance against altcoin to 49.1%, highest last seen in May this year.
Days for Bitcoin price to reached next level,
$0 -> $1000 : 1789 days
$1000 -> $2000 : 1271 days
$2000 -> $3000 : 23 days
$3000 -> 62 days
Top 10 Bitcoin Exchange market (24 hours volume in USD)
1. Bittrex – $580
2. Bithumb – $579
3. Poloniex – $434
4. Bitfinex – $400
5. OKCoin.cn – $293
6. Huobi – $212
7. Kraken – $211
8. GDAX – $203
9. Yunbi – $188
10. Coinone – $157
**based on coinmarketcap.com data
Top BTC pair in 24 hours volume
Japanese Yen and korean Won continued to the major market for Bitcoin, an interesting trend is the increased volume of US dollar possibly indicatating flourishing interest from conventional investiment elites.
Bitcoin trade in Japanese yen accounted for nearly 46 percent of global trade volume, up from about a third a day ago, according to CryptoCompare. US-dollar bitcoin trade accounted for about 25 percent, according to CryptoCompare. Bitcoin trade in Chinese yuan and South Korean won accounted for about 12 percent each.
The presence of NEO (formerly antshares), TenX (PAY) and OmiseGo (OMG) are pleasantly surprise. Ethereum (ETH) remains the second most popular cryptocurrency.
**based on coinmarketcap.com and cryptocompare data
Technical Chart Overview of Bitcoin
Bitcoin (BTC/USD) weekly chart. data: OKcoin
The weekly Bitcoin chart highlighted the amazing spike in the year 2017. The diagram perfectly in sync with the early stage of Elliot Wave formation of ABCD, signaling strong tendency of a continued long term bullish pattern.
BTC has now quadrupled in 2017 and is up about 40 percent in August alone. Bitcoin’s market value is now around $64 billion, up about $10 billion in the last week.
In the daily chart, the price expands further away from 100 days Simple Moving Average. MACD stochastic and DMI share similar trend signal. The impending surge could face correction reversal in coming days. However, the current sentiment is pointing to long term uptick prospect at the moment.
Bitcoin Market Crash?
In the event of a market crash, Bitcoin could face a value dip of over 30-40% based the previous sizable market bearish run which was featured from my previous post on Bitcoin bull vs bear trend here.
The latest bearish run lasted about one and half months, which saw the price losses as much ass 39% from the peak. But The impact was hardly causing any meaningful damage to the industry and didn’t hinder the interest from traders.
Bitcoin Against Major Traditional Investment Assets
The geopolitical sphere in the North Korea affecting the investment sentiment across conventional investment market such fiat currency, equities, and commodities. Bitcoin and other digital currencies are targetted recently as safe heavens. BTC and altcoins price had outperformed the majority of the investment market in 2017.
The growing adoption of Bitcoin as a mean of payment method and endorsement by conventional investment community is set to drive Bitcoin price further. These are confirmed with the rising numbers of media reporting on Bitcoin news.
The Expanding crypto market cap is a clear sign more money is flowing into digital coin market.
US dollar is still struggling near the 12-months low, in the light of fragile global socio-political condition as well as improving Euro zone economic outlook. The greenback had been trading downward from late last year and loses about 10% so far this year. The USD is expected to underperform against Bitcoin in the medium term.
Dow Jones slump about -1.2% last week. Asian and European stock markets also suffer significant sell-offs last week amid political tension in East Asia. Most equities especially tech stocks suffered weaker week. Yet, the US stocks in general still in the positive for the year thanks to few big tech companies enjoying robust growth, such as Nvidia which fortune is contributed to the rapid development of cryptocurrency mining activities. Nvidia share price is up +50% in 2017 alone.
Gold is traditionally regarded as a safe-haven where investors will flock when the dollar falls, but Bitcoin has been seen as another best alternative lately. At the current valuations of Bitcoin and gold, a single Bitcoin is now worth nearly three ounces of gold.
Meanwhile, Bobby Lee, BTCC CEO, points out that eventually the price of one Bitcoin will be compared to one kilogram of gold
— Bobby Lee (@bobbyclee) August 12, 2017
Gold price is at nine weeks high on the back of growing anxiety of North Korea missiles maneuver and the anticipating counter action by Trump administration.
Bitcoin adoption development
This week, Fidelity launched a feature allowing customers to also view their Coinbase Bitcoin holdings. The currency also got a boost from Goldman Sachs, which in a report released this week said it is harder for institutional investors to ignore cryptocurrencies like Bitcoin.
— online biz (@onlinetraderbiz) August 13, 2017
FOMO Updates on Mainstream Media
For the past months, more big name media outlets have been reporting positive news on Bitcoin. The surging BTC price and the successful Segwit activation has generated favorable views.
The news outlet CNBC, in particular, has favored Bitcoin in editorials and the station’s financial video segments. This week on CNBC’s ‘Fast Money’ financial investor, Thomas Lee of Fundstrat Global Advisors, said he believes Bitcoin could outperform gold and U.S. stocks. Lee stated that if Bitcoin commands roughly five percent of alternative asset markets, then one BTC could easily be $25,000 to $50,000 in the future.
When Lee was asked by the ‘Fast Money’ panel if he had to choose between U.S. stocks or bitcoin this year, Lee said Bitcoin was a clear choice stating;
“I think Bitcoin is an under-owned asset and the potential for huge institutional sponsorship is coming — Between now and year end, it’s easily bitcoin.”
Crypto (excluding Bitcoin) market
The altcoin market is taking a step back as Bitcoin keep taking the driving seat in terms of price movement as well as media reporting. As most altcoins price are tied with the price of Bitcoin. Thus, most coins should maintain the value in USD term if they avoid major downtrend against BTC.
Most major altcoins still hovering in value boost trajectory. Ethereum, Litecoin, DASH, NEM and others are recovering from previous two months sluggish trend. NEO is enjoying the best week for the week with investors rushing to accumulate the token.
There also many laggers during the current August Bitcoin boom such as Golem (GNT), Siacoin (SC), Ethereum Classic (ETC) and etc. These are only a few of the hundreds of tokens that openly traded now.
The ICO still keep on rolling out recording funding numbers. It would be fascinating to monitor the cryptocurrrency market for the coming weeks/months on whether investors will be buying into altcoins.
The cryptocurrency is relatively new and technically strangely by most. Bitcoin and Ethereum are two of the most visible and understood by the mainstream. This sentiment should be viewed as positive one and their success would drive the interest on altcoins. The prospect of altcoins in the back of blockchain technology taking roots is generally bright in the long haul.
In the short and medium term, Bitcoin and altcoin prices are going to be volatile in this unregulated ecosystem. Bitcoin price would not be verticle pattern all the time, nothing will. It would undergo up and down cycle.
Investment is all about but high and sell high. Keep calm, invest only to the amount you can afford. Buy when the market is crashing and sell when the price at its high.
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Images via tradingview Yahoo Finance, CNBC