Bitcoin (BTC) in four-days retreat streak after “megalomaniac” surge started around August 5. The BTC price reached a new high of 4469 at Aug 17 on OKcoin. Since then, the price had fallen -11% and one time dipped below 4,000 marks in the early Asian session. The marketcap was down to just below $70 bn and the BTC dominance against altcoins had stabilized at 46.2%.
Bitcoin is the best performing investment asset in 2017, the price had exponentially risen +337% this year. The total Bitcoin market value took a massive bump from $15 billion to $70 billion on Aug 18. The average daily trading volume jumped nearly fivefold from 12 billion to the current average of 66 billion (according to data generated on coinmarketcap).
In comparison, NASDAQ recorded a growth of 15%, Gold is up +11% and Crude Oil drop almost 10% in the same period.
Together with altcoins, the entire cryptocurrency market cap currently stands at $142 billion. However, the true valuation of digital currency compiled so far is questionable by conventional standard accounting and even criticised by insider experts. Yet, the true potential that lies of its blockchain and disruptive technology is undeniable.
The year of 2017 saw some of the largest multi-billion dollar financial institutions including Goldman Sachs, JPMorgan and Fidelity Investmentsrushing to express their optimism towards the granddaddy of cryptocurrencies.
Goldman Sachs the most prominent Wallstreet firm made a dramatic u-turn and has encouraged its portfolio managers to invest in Bitcoin, and Fidelity has been exploring cryptocurrencies through mining equipment.
Bitcoin and cryptocurrency 2-years mammoth uptrend also attracted no less pessimistic views such as Billionaire investor Howard Marks who specifically labeled Bitcoin as fake and outright ‘ponzi’ scheme alike. He also pointed at the current Bitcoin as the next dotcom bubble in his memo.
Billionaire investor Marks, who called the dotcom bubble, says bitcoin is a ‘pyramid scheme’ https://t.co/0uLDGAyeuk
— Cryptomeo (@Cryptomeo) August 21, 2017
Another well-known financial expert, Peter Schiff also voiced his concern regarding the current intrinsic value of Bitcoin and altcoins. He dismissed the current cryptocurrency ‘gold rush’ as mere hype. The megalomania price hike is dangerously exceeding the actual value, thus creating a ‘bubble’.
Bitcoin extraordinary rise has prompted the race for Bitcoin analysis and price prediction by some of the biggest brokerages. From Bank of America to Morgan Stanley, every investment experts even skeptics are rushing to push out their Bitcoin analysis and forecasts.
Besides, major news media had increased coverage on Bitcoin. Bloomberg and CNBC among others had extensive reports on Bitcoin prices and developments. Forbes articles related on crtyptocurrency has reached a level never seen before.
The frenzy aside, the Bitcoin price rises were never straight vertical. The latest exceptional bull run is due for a correction. From the previous BTC price trends, the price could contradict in the region of 30-40%.
The BTC price rejected from the peak around 4550 could form a possible trap. In the event of market crash of 30% correction, the price could hit the base price around 3200-3300. However, the price could five to 2500 zone assuming a market contracted by 40%.
But these are all only assumptions based on historical trend. The bear trap could last far longer or shorter. The next reversal could happen around October or November.
Bitcoin Cash Showing Where The Real Cash Is
Elsewhere in the cryptocurrency world, Bitcoin Cash, a new digital currency split off from Bitcoin at the start of the month, had jump 240% in three days. The price reached peaked at $1072 on Aug 19 before took a sharp drop to around 583 now.
There are rumours that BCH is trying to challenge BTC in terms of usability as well as market adoption. But in fact, most would emulate Bitcoin. The inclusion in Coinbase and possibly Bitstamp could fuel the BCH to rally.
Bitcoin Cash Wins Mining Power as Price Falls Back Below $600 https://t.co/1f4eYJQ351
— Cryptomeo (@Cryptomeo) August 22, 2017
That’s another big news on BCH space, it’s mining profitability eclipsed of BTC. That’s pumped up the BCH market. BCH is firmly cast as the 3rd most valuable cryptocurrency. The market currency stands at over $10 billion.
Ethereum, the second-biggest cryptocurrency after Bitcoin by market value, is up 5.1% against the dollar to $323.96 at the same time.
Monero (XMR) Makes Move And Eyeing $100
Monero price doubled in the span of a couple of days. The price briefly crossed $100. Currently, the price hovered at $74.71. The XMP spike mostly associated with the news of its upcoming inception into Bithumb exchange, the Korean-based biggest Bitcoin marketplace in the world. Yesterday trading volume shot up almost 15 times of average daily volume.
— WhalePanda (@WhalePanda) August 21, 2017
Catch up some updates on reddit/Monero.
Chart via tradingview