Summary:
- Bitcoin (BTCUSD on xStation5) nears $3500 after a breakout of a critical resistance
- Coinbase to integrate Bitcoin Cash support by January 2018
- Ethereum (ETHUSD) as well as Litecoin (LTCUSD) are in demand as well
After Bitcoin price surged at the opening of trading on Monday easily breaking out of a resistance placed at around $3000, an upward move continued in the morning today as the virtual currency already approached shy of $3500. An increase of interest of digital currencies was seen not just in case of Bitcoin. Other cryptocurrencies such as Ethereum, Litecoin or even beleaguered Bitcoin Cash went up as well.
Bitcoin keeps surging and approaching an important technical level which could cool off buyers to some extent. Source: xStation5
Taking a look at the chart above one could note that the price is nearing a key technical level which could serve as a tipping point. Some declines sparked by profit-taking cannot be ruled out, if Bitcoin gets a 123.6% retracement of an upward move measured from the last year’s lows. In addition, let’s notice that any gap, regardless of whether it was upwards or downwards, was closed after all. Having assumed that history repeats itself this week’s demand gap could be closed as well. If so, the price could come back towards $2970 before resuming gains.
When it comes to regular news, David Farmer, communications director at Coinbase, officially announced that Coinbase would integrate Bitcoin Cash (BCH) support by January of 2018, assuming no additional risks emerge during that time. Once supported, customers, who had stored Bitcoin on Coinbase prior to the August 1 hard fork, will be able to withdraw Bitcoin Cash. To be honest, it could mean another period of uncertainty whether original Bitcoin holders will be credited with a proper amount of the new cryptocurrency ultimately.
On the face of it, the above-mentioned issue seems to be unfavorable for Bitcoin, however traders have completely shrugged it off and rushed to buy BTC. On the other hand, if Bitcoin Cash volatility stabilized before offering users, it would be a positive feature for them which would increase predictability of future price swings.
Three major cryptocurrencies (BTCUSD, ETHUSD, LTCUSD) opened with a demand gap on early Monday. Moves continued in the morning today. Source: xStation5
While the three mentioned digital currencies marked a massive demand gap yesterday, Ripple (XRPUSD) remained only little changed. The price has moved above an upper limit of a triangle formation which could mean that a narrowing trading is already ended. If so, the price could go towards the nearest resistance placed at around $0.21 where bulls could run into more obstacles to climb higher.
Ripple managed to break above an upper limit of a triangle formation which could mean that a narrowing trading is already ended. Source: xStation5