It is undoubtedly a historic time in cryptocurrency’s history as the sector is experiencing a massive influx of investors. Not only is Bitcoin breaking all time highs every single day, but altcoins are also exploding in value. Bitcoin has recently reached yet another record price at $2230, but shortly after dropped over $100 to a low of $2096.
Taking a look on tradingview, most traders are banking on a long position. For example, one user suggests that the bullish trend will continue for at least another week, after which we may see a correction.
“The weekly chart shows we can rally for one more week here, before getting a consolidation or correction, and the target for it matches the long term top target for this pair. I will continue to hold IvanLabrie, and add if we get a correction in a month or so. My goal is to maximize my exposure to when it counts, which is, right at the end of a correction or consolidation phase.” –
Another trader, Punisher1314, agreed that the price may keep rising to $2400 or even the $2500 mental barrier, after which a correction should ensue. He said:
So everything points to a possible third and maybe last price accumulation between these supports ($2000 level), making the 2400$ mark a strong barrier for the price (also the psychological 2500$ mark makes it a double-barrier), and a good place for a short position.
Reasons for the ATH?
As discussed previously, Japan’s crazy price premiums of 5-10% are just further proof that the country is leading the latest rally. Furthermore, as the Chinese exchanges joined the party in the past few days, that only contributed further to the bullish momentum.
However, some fresh news came to light recently at Coindesk’s Consensus 2017. A document was released on pastebin, which indicated that a collection of major Bitcoin companies have agreed on a common solution to the blocksize debate.
The list of companies include Bitpay, BitGo, Bitmain, Blockchain, and more. The document states that all the above entities have agreed to support the Segwit2Mb proposal. The upgrade software will include the two following changes:
- Activate Segregated Witness at an 80% threshold, signaling at bit 4
- Activate a 2 MB hard fork on September 21, 2017
Amid this announcement, it is evident that the Bitcoin community is approaching a consensus regarding the blocksize debate. While there are still people that oppose the Segwit2Mb upgrade, their opinions may no longer be relevant as there is enough support for the software already.
This announcement has definitely contributed to the latest all time high record, as it comes among an array of positive news surrounding the cryptocurrency sector. When Litecoin activated Segwit a few weeks ago prices soared over 50%, it seems that a similar trend is happening with Bitcoin prices right now.
What can go wrong?
However, not all is sweet and peachy, Poloniex is reporting some major problems as users are complaining of missing withdrawals and not credited deposits. Some are scared of another MtGox moment which could send the market toppling down. While Ploniex doesn’t trade BTC / USD pairs, if the exchange halts services in the near future, expect the market to take a loss. Poloniex is the world’s largest altcoin exchange right now, and it is essential to the ecosystem that it remains functional.
This also serves as a good time to remind users not to leave funds on exchanges. If you plan on holding a position in any cryptocurrency it is always better to withdraw the coins to a wallet you have control over, and make sure the private keys are in your possession.
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