Last week was huge for Bitcoin. The most controversial fork, SegWit 2x was cancelled and you can read more about it here. This gave rise to some unexpected events over the weekend with forked coins like Bitcoin Cash and Bitcoin Gold.
Bitcoin had a major relief last week when the controversial SegWit 2x fork was called off. Controversial, because it had the potential to break up the bitcoin community in half and it was not clear if they had significant support. Another issue with SegWit 2x was that it did not have replay protection.
Initially, the market reacted positively to the news and Bitcoin shot up to an all-time high of $7,800. But that was short-lived and went to a three week low of $5,400 on Sunday. That’s a price drop of over $2,400 in just four days, making this crash the biggest in recent times.
There are concerns on Bitcoin Scalability now that the SegWit 2x fork has been cancelled. This is the price correction which everyone has been looking out for, and further downwards movement is possible. But in the long-term, Bitcoin is still solid.
Bitcoin has a minor support at $5,200 and a major support at $4,000.
Bitcoin Cash (BCC)
There’s a reason why Bitcoin Cash is above Ethereum in this week’s analysis. Bitcoin Cash was the biggest surprise this week. Bitcoin Cash had been steadily increasing over the week. But on Sunday, there was a huge pump which pushed Bitcoin Cash’s market size over Ethereum at $32 Billion making it the second largest cryptocurrency. Though at the time of writing this article it has come down, the impossible had happened.
Bitcoin Cash had finally broken its resistance early last week and was trading between $500 to $600. But on early Sunday, there was a weird surge which pushed BCC all the way to a new all-time high of $2500. That price was short lived and the price crashed immediately. BCC is trading at $1,100 now, which is still higher than what it was for the past few weeks.
The recent push is probably fuelled by fear of missing out and scalability issues in Bitcoin Core. Being a new currency, it is incredibly volatile. So be careful while trading it. The closest support is at $600, but it might not hold if there is a crash.
Ethereum had a quiet week. It is still trading horizontally in the $300 range. There is no clear signal of the market changing in either direction. Ethereum has been consistently touching the $325 resistance and $275 support every week. It might be a good idea to create trades around this.
Ripple went through a correction after no significant announcement at SWELL event last month and had been trading horizontal ever since. This week was no different. Ripple did not react to the market movement. Ripple continues to have resistance at $0.22 and support at $0.18.
DASH was trading most of the week horizontally and finally broke free of the consolidation like we predicted in our last week’s analysis. DASH broke free of its resistance and went to an all-time high of $540 a few hours back. If you had followed our analysis last week properly, that’s a profit of $250 for each DASH. Since DASH has already gone up now, there is no point in entering it if you haven’t already. Wait it out and buy again at a later time when there is a clear buy sign.
Litecoin is below DASH this week because of DASH’s sudden surge. Litecoin had a major resistance at $58, and it might have finally broken free of it. Expect some upwards movement if it manages to test the $58 price a few more times successfully. The next resistance for Litecoin is at $65 and $70.
There was nothing significant with Neo this week. Neo has been trading horizontally between the $32 resistance and $25 support. At this point, it is something that is happening every week, and it might be a good idea to trade between these two points.
At this point, Bitcoin is extremely volatile with a drop of over $2400 in just four days. If you are uncomfortable with this level of uncertainty, convert it to fiat, or invest it in some Alts like Ethereum and Litecoin which has been trading horizontally.