Bitcoin Altcoin Price Analysis

Well, as they say, the bigger they are, the harder they fall. For bitcoin altcoin price this is true.

Bitcoin’s recent bull charge was certainly big, meteoric even. Now the price is well and truly in correction mode.

From it’s highs of ZAR 11,000 last week, we have retraced to ZAR 8,500 on current trading. As per previous analysis, we still believe this is a long-term bull market.

In the short to medium-term however, the bears may well hold strong. Expect volatility and potentially even more profit taking.

Bitcoin Altcoin Price

BTC/ZAR 1-week Price Chart Courtesy of Cryptocoincharts.info

The resistance level to watch, on the downside, is Rand 6,500 – 7,000. Previous support levels at ZAR 9,500 and USD 8,600 were all crushed. This was the inevitable result of under the weight of bearish sentiment and/or short-term profit taking.

We expect the longer-term price rally to continue. This should only be a short term correction. Charts give us confidence in that.

Bitcoin Altcoin Price Economic Factors

Besides the halving event approaching, and China capital controls, we should consider the looming ‘Brexit‘.

Polling would indicate that the slight majority of voters are in favour of remaining in the Eurozone. This has helped bolster traditional investments, at the expense of less traditional options, like Bitcoin.

Bitcoin is a hedge, a little like gold. It has similar properties and characteristics. It’s price tends to benefit in times of macroeconomic uncertainty.

The fear, uncertainty and doubt that would come with a Brexit benefits bitcoin. The alternative certainty of remaining in the EU would favour traditional investments.

US Dollar Market Downtime

Bitfinex is the main platform for taking leveraged trade positions in the Bitcoin market. When the platform went down unexpectedly for period, panic and subsequent profit taking set in. It must be remembered that this is the largest exchange for USD volume in the market.

Ethereum Platform Chaos

The ‘hack’ of the DAO was all over the news and mainstream press this week. The DAO (Distributed Autonomous Organisation) is a 3rd party piece of software that runs on the Ethereum platform. An exploit was found by some hackers in the code for the DAO.

They used this to gain access to over US$ 50 million worth of Ether (the native currency of the Ethereum network). Due to the nature of the DAO, the attacked cannot get away with this digital currency for another 3 weeks after the hack. News is ongoing. Everyone is trying to work out how to handle it. Debate has been heated.

Bitcoin Altcoin Price Chart

Meanwhile, the price of Ether itself has held up remarkably well. It was reaching all time highs over US$20/ETH when news of the attack hit. It then pulled back quickly, losing over 40%. But it quickly recovered, and is trading in a the range it was at before its short-term, pre-surge, price rise.

Volatility is the watchword of the day for ETH, while concerns about the implications of the DAO hack remain.

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