Market report

THE SHAPE OF BITCOIN

London Block Exchange

5th March 2018

And the Oscar goes to Satoshi Nakamoto’s ambitious drama

THE SHAPE OF BITCOIN

And the Oscar goes to Satoshi Nakamoto’s ambitious drama

After breaking its December linear resistance last Friday, bitcoin is standing at the edge of said resistance since 03:00 GMT — but this time traced on a logarithmic scale, which is a view used to better reflect percentage changes along a wide range of values.

The weekend wasn’t smooth though and some feared a rising wedge forming this Sunday — a bearish pattern that technical traders consider indicative of a decline in price. Overall, however, it seems that the higher time-frame bullish channel won the fight.

As daily volume has been declining over the past few days, many are neutral at the moment, especially when considering that some traders are shorting bitcoin like never before — even after the largest shorter lost half of their position. So is it a bull trap or the start of the next run?

A MORE COMPLICATED ALTS SCRIPT

Alternative projects are struggling to keep up — but no need to worry yet

While we wait for bitcoin’s new trend to emerge, the rest of the market is still moving — and so are fees. Did you know that Ethereum’s fees can now be higher than Bitcoin’s, with some SegWit transfers costing less than £0.15 and median fees being lower than £0.50?

Remember that all Ethereum-based alts — and most other projects — have been losing value since February 10th, a few days after bitcoin’s dip to to £4.4k ($6k). The question is then what will happen to alts if bitcoin bulls show up?

Twitter sentiment is that alts are dead, but that always happens when the players that dominate the space — and the ones that were most likely to have started their cryptocurrency journey with bitcoin — feel their favourite cryptocurrency is out of the woods.

Looking at the past 24 hours, the entire market was up 3%, with only 20 projects out of the top 100 in the red. That is in dollar terms, however, with the market not moving on average against bitcoin. Still, some alts ranked 50 to 500 by market cap continue to have wild gains!

The solid alternative projects continue to have interesting 2% to 5% daily swings. Monero, the most popular privacy coin, has been rising since Friday due to a dodgy hard-fork taking place next week; and Ripple is surging due to a new Coinbase rumour.

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

NEO has been dropping over the past few hours as the critique of its blockchain’s consensus method has become viral on Twitter — read it here.

If you are trying to capitalize on the Monero ship, remember that forks don’t necessarily mean ‘free money’ — beware of scams and keep your private keys private!

Check out another Brave New Coin price analysis — this time on ether and Ethereum. Read it closely and remember that you can use ether as a lighthouse for the rest of the alts market.

WHAT TO READ TODAY

An insight a day could give you more profits to play

Last Friday the Bank of England’s Governor, Mark Carney, spooked the markets with some spooky titbits — but the entire speech on “The Future of Money” is quite good.

Last month Paul Krugman, the Nobel laureate, continued his crypto hate and praised gold — but what if he doesn’t understand that gold and bitcoin serve the same key function?

Last century (actually, two centuries ago), petroleum markets were just like the crypto markets today. Learn about the curious similarities between these two revolutions here!

  • satoshi
  • segwit
  • bitcoin
  • ethereum
  • NEO