Are we discovering bitcoin’s price, or is this part of a major dead cat bounce?
The weekend was quite strong for the majority of cryptoassets. After finding technical support on a double bottom, bulls went long and pushed bitcoin’s price back to last Wednesday’s level. Bitcoin has now been sitting at around £6.9 ($9.5k) for more than half a day now.
A potential bull flag is forming on the hourly chart for those who are looking for a day trade, but remember that bitcoin has been trading sideways for more than a month — so any moves above or below this current range will dictate the next months’ action.
Over the past few weeks, some have been noting the similarities between December 2013 and December 2017; both months having an all-time high which then marked the beginning of a bear market. Overall, however, the two timeframes cannot be compared — especially as Mt. Gox collapsed in February 2014 — but there’s still an interesting case to be made about not expecting a bull run soon.
It’s curious that crypto bears can only make a technical case for their stance — they usually resort to large systemic events as evidence that these new assets don’t deserve their high valuations. The bulls, on the other hand, have their case regardless of short-term price action.
While we can’t dismiss the overall decline in interest and network usage after last December’s bull run, it seems that last week’s downwards price pressure has been mostly driven by “undercapitalised, hyper-aggressive short term traders”.
Even Mt. Gox’s trustee’s selling activity alone might not have been responsible for the January decline. This is important as currently most 2018 ICOs are trading below their opening prices and more than two thirds of the top projects are underperforming against bitcoin — which means that even with a bearish outlook, bitcoin may still be a safer haven than alts at this time.
The only major cryptoasset performing better than Satoshi’s creation is bitcoin cash. This performance has likely been fuelled by the rumours that Gemini, a US based exchange, will list the fork. Some naysayers advise that people shouldn’t believe the hype, especially considering that Litecoin — and even Dogecoin — have more transactions than Bitcoin Cash’s network!
You still have time to book a plane to ‘Puerto Crypto’ to attend Blockchain Unbound, a non-profit conference which aims at supporting the local community.
You still have a chance to stop buying your favourite cryptoassets on OKex and Huobi, popular Asian exchanges, as a new study claims that their platforms have artificial volume and wash trading.
You still have a say in which privacy-focused cryptocurrency wins the race. Here’s a solid analysis of Monero’s governance with an unbiased comparison to ZCash.
Politico, a popular political journalism outlet, wrote a long read on the impacts of miners in the communities in which they settle. It is interesting to see some ethical miners using excess heat in greenhouses to harvest cryptotomatoes.
John Oliver, the host behind Last Week Tonight, dedicated yesterday’s episode to cryptocurrency — discussing bitcoin, blockchain, ICOs and even Bitconnect!