Summary:
- Bitcoin Gold went live over the weekend, the price surged afterward
- Bitcoin Cash gained massively as well, it’s already third largest cryptocurrency in terms of capitalization
- Bitcoin (BTCUSD on xStation5) saw one of the largest pullback on record
It was the hectic weekend on the cryptocurrency market as one could have been noticed gargantuan moves on Bitcoin and its new version as well. First and foremost, the long-awaited launch of Bitcoin Gold took place on Sunday when developers for the project published software for the breakaway cryptocurrency. The new virtual currency was climbing in a run-up to the official introduction as the price reached its top slightly above $500 according to quotes delivered by coinmarketcap.com. Nonetheless, since then the price has retreated considerably below $250 and it’s trading at around $260 at the time of writing.
Bitcoin Gold reached its record high during the weekend but it failed to retain those gains. Source: coinmarketcap.com
Let’s recall that the main goal of this project is to re-decentralize the mining of Bitocoin. Until then Bitcoin could have been mined just by someone with warehouses full of specific equipment, however after the launch the new cryptocurrency could be mined by anyone with GPU graphics cards which in turn is to make the mining more democratic.
While everybody zoomed in on the fork, Bitcoin Cash (a by-product of the fork which took place in August) was definitely worth looking as well as the digital currency made an impressive increase. The surge could have stemmed from two reasons. Firstly, it continued a rally after plans for a so-called ’hard fork’ in the original blockchain were scrapped be developers and therefore there will be no an upgrade of the blockchain known as SegWit2x to speed up transactions’ processing. Secondly, Bitcoin Cash experienced a hefty capital influx when traders decided to withdraw from the genuine Bitcoin market. In this respect it needs to underline that Bitcoin Cash has greater block size compared to Bitcoin (8MB vs. 1MB), it also offers lower fees being more profitable for miners at the same time. Therefore there are increasing assumptions that it could attract more attention of market participants in the future in comparison to Bitcoin.
Bitcoin Cash has already surpassed its rival such as Ripple (XRPUSD), Dash (DSHUSD) and Litecoin (LTCUSD) in terms of market capitalization. Source: coinmarketcap.com
In effect Bitcoin Cash surged to just shy of $2000 in the Sunday’s morning pushing up its market capitalization which saw the cryptocurrency the second-largest market in the whole space. Nevertheless we’ve seen a corrective move since then which in turn has lowered capitalization and now the price is at $1200.
Bitcoin marked a bleak end of the last week as the price collapsed more than $2000 from its peak. Source: xStation5
Technically the price of Bitcoin had four successive drops in a row which brought the virtual currency down nearby a relevant support area. We can notice that buyers have been able to stay above the zone thus far which has already caused a corrective jump above $6200. One may forecast that until the price maintains above a green rectangle, a continuation of a rebound could pursue. On the flip side a breakout of this area could result in a deeper drop possibly below $5000. If so a 100 moving average could be the closest support line, as it’s already been several times as of yet.