With a hard fork coming close, how is the market responding?
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Market Analysis 19.10.2017
This week, Bitcoin has continued growing and reached new record highs at $5,885, then traded at $5,550 to $5,700. However, negative news followed by a correction also had an impact on the leading cryptocurrency.
During trading time on Wednesday, Bitcoin dropped to $5,100 after the US Commodity Futures Trading Commision announced that tokens were to be equated with stock goods. If this happens, cryptocurrencies risk being observed more closely and regulated more strictly. In addition to frightening prospects coming from the US, investors were greatly influenced by the congress of the Chinese Communist Party, which can lead to more regulatory decisions.
Despite another attempt at influencing the cost of Bitcoin, we observe an increase back to $5,700 levels and a continuing uptrend before the upcoming fork.
- Bitcoin stopped this week’s negative trend and, starting with a new $5,100 support level, managed to restore its positions trading at $5,650 to $5,700 levels the next day.
- Bitcoin is in a rising trend and can keep going up and even breach its recent record high at $5,850, after it overcomes temporal resistances at $5400 and $5,580.
- The current trend is likely to continue and may even breach the $6,000 barrier if buyers remain in control of the situation. Technically speaking, the next barrier will be $6,150.
However, Ethereum software, which supports Byzantium, was withdrawn from publication over the past few days due to some code errors. Developers made the necessary corrections in due time, but the Ethereum cost dropped to its recent minimums at the $300 level despite these events.
Ethereum hit this week’s record high beyond $350 and is now trading at $310. Currently, there are some bearish tendencies for this crypto asset.
Its resistance level is still at the $340 level, further increase in Ethereum cost is expected after it has breached this level. The nearest support level is between $285 and $290.
All the expectations and forecasting of the situation ahead with regard to Ethereum depends on its success or problems arising from the network updates. Another attempt to decrease prices below $300 is likely. Then we are expecting a continuing price growth, with a potential $365 price target in case of a successful update. Should there be any problems, a drop to $275-$280 is to be expected.
Along with the growing Bitcoin, Litecoin has also reached this week’s high of $70, breaching $55 and $60 resistance levels. In the past, we predicted a $65 target in case it would leave the traded range.
As of now, Litecoin is trading at $61. As far as LTC is concerned, there is a shift from “bearish” to “bullish” moods and purchases are slightly higher than sales. LTC quickly restored its positions after a local correction to the $52 level.
A movement in flat within the $57 to $65 range is a highly probable scenario if there is no significant local correction for Bitcoin. The conservative area for sales following the speculative purchase of Litecoin is near the upper boundary. Sales within the $48 to $50 ranges are possible.
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Author: Vlad Smerkis