Talking Points
- Asian trading saw Bitcoin surge to over $3200 before Europe took the currency even higher.
- Bitcoin Cash joined in the market rally but is still nearly $500 lower than last week’s high.
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Bitcoin Soars as Bullish Cryptocurrency Traders Take Control of the Market
Another week, another new all-time high for digital currency heavyweight Bitcoin, with Asian traders taking out the June 12 high of $2980 with ease. BTC ‘gapped’ higher on the open in Europe around $3150 before pushing ahead to print a new high of $3248 as the US opened. With the Fibonacci 127.2% extension at $3303 taken out, a close above here would open the 161.8% extension at $3715. The Stochastic indicator however shows BTC to be in overbought territory so a degree of profit-taking may set in before the next move higher.
And I will be talking Bitcoin Trading and Strategy on Wednesday August 9 at 1100 GMT. Join the free webinar here.
Chart: Bitcoin Price Daily Timeframe (May – August 7, 2017)
Chart by IG
This rise, plus double-digit gains in a range of other altcoins, pushed the cryptocurrency market capitalization to over $117 billion, as acceptance of alternative currencies continues to grow.
Market Moves/Top 5 Capitalizations – August 3, 2017
Data from Coinmarketcap.
Bitcoin Cash Rallies as Coinbase Offers Support
And the newly created Bitcoin spin-off, Bitcoin Cash (BCH) also rallied hard over the weekend with one of the leading exchanges, Coinbase, revising its previous stance and announcing that it would support the new token. BCH jumped 30% to $268.58 but still remains nearly $500 off its high print of $750 made on August 2.
According to a blog, the company will support BCH from January 1, 2018, providing no additional risks emerge during that time. “Over the last several days, we’ve examined all of the relevant issues and have decided to work on adding support for bitcoin cash for Coinbase customers. We made this decision based on factors such as the security of the network, customer demand, trading volumes, and regulatory considerations.”
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--- Written by Nick Cawley, Analyst.
To contact Nick, email him at nicholas.cawley@ig.com
Follow Nick on Twitter @nickcawley1
