Talking Points
- There’s further upside, looking at the charts, but probably from a lower base.
- Segwit2x is near and traders should be vigilant
The DailyFX Bitcoin Glossary is designed to provide traders with a reference for important terms and concepts essential for understanding the emerging cryptocurrency universe.
Bitcoin (BTC): Readies for a Fresh Push Higher
Ahead of the Segwit2x fork, Bitcoin (BTC) is giving back some of its recent stellar gains after touching a recent high around $7,600. A recent boost from the CME, who announced that they would offer BTC futures in Q4 2017 subject to regulatory approval, sent the token sharply higher, but a bout of profit taking has pushed BTC back towards $7,000.
And the profit-taking may in part be caused by the upcoming Segwit2x fork, scheduled for activation at block 494,784 which is currently to occur on Thursday, November 16. The original Segwit fork three months ago produced a new token, Bitcoin Cash (BCH), and was predicated on a block-size increase within three months.
The recent set-back in BTC, and the rally in BCH indicate that while the fork is expected to go ahead, traders are still not 100% sure and are hedging their bets. A look at Bitcoin’s daily chart also shows a repeat pattern of a sharp rally, followed by a short sell-off before the price starts moving higher again.
Chart: Bitcoin (BTC) Daily Timeframe (July – November 7, 2017)
We have been discussing the upcoming Segwit2x fork and its price-moving potential, over the last couple of weeks at our Weekly Bitcoin webinar on Wednesday’s at 12:00pm - if you would like to join us, please click here.
The chart below shows the sharp jump in BCH over the last few days, fueled predominantly by Korean Won buyers. The 0.382% Fibonacci retracement level around $673 acted as first resistance, while the 50% retracement level at $580 is currently acting as support.
Chart: Bitcoin Cash (BCH) Daily Timeframe (August– November 7, 2017)
Market Moves/Top 8 Capitalizations – November 7, 2017
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--- Written by Nick Cawley, Analyst.
To contact Nick, email him at nicholas.cawley@ig.com
Follow Nick on Twitter @nickcawley1
