Sideways is the new Up?
In the past, weekends have not been good to Bitcoin or the entire Crypto space in general.
Some of the biggest declines have taken place on weekends and the volume in general is usually much less.
This being a Holiday weekend in the United States is likely exacerbating that trend.
The past month has been pretty rough for the entire space. After Steem made all time highs near $3 it is trading down around $1.60.
Bitcoin has a similar chart but not nearly as much of a decline currently. After reaching nearly $3000 per coin, it is currently trading around $2500 per coin.
What's going on?
Much of the decline initially was likely good ol profit taking with some other minor contributing factors as well.
However, lately with the uncertainty over what is to come, some investors/traders decided to take some chips (coins) off the table.
The lack of volatility in the Bitcoin markets likely has to do with the coming user activated soft fork. When the dust clears there is the remote possibility of 3 competing blockchains. With a much stronger possibility of 2 separate blockchains being created.
Basically, no one knows for sure what is going to happen, so they are sitting on the sidelines.
Continued uncertainty likely means volumes will be down for the next several weeks leading up to the August 1st date. The price will likely be subject to headline risk even more so than usual, as the latest headlines coming out will likely whip the price around until we get some definite answers as to what is going to happen come August 1st.
The following is a 2 hour chart of Steem/BTC showing the last month of trading activity:
Sideways is good, for now.
Judging by the current environment we are in, sideways is pretty good price action. After a month or so of declines it finally is looking like the selling is slowing down.
The only question is if the selling is slowing down because it is finally getting exhausted or is it slowing down because no one wants to take an action prior to the coming soft fork in bitcoin?
I tend to think the first one is the more likely scenario.
ZombieTraderAbott on BitcoinMarkets tends to see things quite a bit more positively saying this:
"I'm super bullish right now. I think we are about to jump to around $2800 within 3-4 days, wobble for a bit, and then make new all-time highs within 1-2 weeks. I honestly think we could be cracking $5k before the end of August."
Not sure I agree with all that, but I like his thinking. Perhaps he is right but maybe push the dates out just a little more in my opinion.
After all, we cannot forget this picture:
The bigger picture.
Looking at the bigger picture, Bitcoin and Steem (as well as many others) are still multiples of where they were trading just a few short months ago.
Bitcoin was trading around $1000 on April 1st and as we just passed July 1st, it is hanging in there quite well around $2500. Impressive returns over a 3 month stretch.
Steem has enjoyed very similar types of gains over that time period.
So, while sideways might be the new up for the time being, I tend to think we are just consolidating before the next leg up takes much of the cryptocurrency space to new highs yet again.
Stay positive my friends!
Sources:
https://themerkle.com/bitcoin-price-remains-stable-around-us2500-as-overall-uptrend-remains-intact/
Image Sources:
http://www.turn2profit.com/bomeasyandfun.html
Follow me: @jrcornel
Just keep on HODLing!
I think we will have big spike up, after activation of segwit on august, 1
I think the spike could come even sooner, like a week or two before that. But Bitcoin will probably reach $2200 before that happens, so get ready to buy some.
Right on @coinlend. A lot of market apprehension right now which is why I think we are seeing stability between $2400-$2500 mark. My prediction is we see LTC go up this week due to the lack of a decision on august 1 for sure. After LTC spikes briefly we will likely see a sideways move.
Wall Street is being forced to recognize digital currency due to demand of its customer base and market speculation across the globe. After August 1, BTC will finish out 2017 with new records.
Good prediction. I am looking forward to august 1 as well :)
I could see that as well.
I see BTC hitting new record highs ending 2017 as well! Ill be buying BTC if there is a blood bath before the 1st. All I know, is 5 years from now Bitcoin will be worth much more than today!
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@Wiedy
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I think just getting past the unknown will make the price go up, no matter what the outcome is.
Totally agree!
I'm not sure that losses of 35% is sideways, but I'm trying to remain positive. It looks to me like steem is homesick for the bottom.
To be fair if we are going sideways that still means there is a demand and the marketcap is going up. Im okay with this.
Yes, as am I. Sideways is the new up! ;)
it is, its like powering up to 100% in Steempower and then booooom :)
When people start saying "bubble" get ready to sell. Use the profits to re-enter at a local low. Rinse and repeat. Profits $$$
People have been saying bubble for months... actually for years regarding Bitcoin.
going sideway is a very good thing ..this way there is time to accumulation and assessments of the recent high
when bitcoin will start going up again it will take realy few days to see 3000 and above.
I think that the markets are looking for the push with some news that another country regulate the bitcoin and accepts it as a legit currency ..then we will see prices fly high reassess and again side way ....
I could see that as well. If any of the major countries were to legalize Bitcoin, it would take off.
...it is actual not ...if any of the major countries were to legalize .... but when any of the major countries were to legalize...
I think with the uncertainty people are more likely to move from bitcoin to eth and litecoin, at least in the short term.
but if bitcoins issues become resolved smoothly it could be a start to a large price spike.
I could see that, although lately it seems the entire space moves together. The next couple weeks will be interesting.
A good update on the issues we will face with regard to bitcoin this whole month. The uncertainty is quite scary hence why I advise to secure yourself by geeting steem and powering up. Wth steem, the uncertinty is not too extreme like the current situation with Bitcoin and Etherium. Thanks for sharing, upvoted.
Yes I agree, plus you can earn some curation rewards on your investment while you wait ;)
I agree, hence why I still believe that steem plus steemit is the best..steem will still go up as it is undervalued (good time for us to continue buying).
I wouldn't be surpised to see btc hit 5k by August. If that happens, I'd expect to see Steem rise by an even higher % amount, maybe to $4 or $5.
That would be fantastic. I am interested to see what happens to BTC once August 1st is out of the way. How many people are sitting on the sidelines waiting for that date to pass before getting involved?
Yes this is a good point. I thought the uncertainty of BTC UASF would cause people to rush into ETH bringing the price of ETH higher. Looking at the total market cap of the crypto space now hovering at $94.7 billion vs $100B plus, I suspect people are getting out of crypto and going into fiat. Until the uncertainty settles and is resolved.
Yes, that is exactly what has been going on. Lately the entire space moves together. It will be interesting how long that lasts. These next few weeks will be interesting.
Yeah when the market moves together like that they all follow BTC and most of them drop lower against USD than btc.
When that happens I want to get out of the alts and just stay with btc.
could even be 10-15k