Bitshares - Primed for Success - Technical and Fundamental Analysis

Bitshares - Steems big brother and a major benefactor from the ongoing development of Steem and Peer Plays

Disclaimer: This is solely my opinion; i have no knowledge of developments; this is NOT investment advise; I am a long term holder of Bitshares

Background

Bitshares 2.0 - descendent of Bitshares, BitsharesX, Protoshares and Angel shares (Ticker BTS) has been a long term project of Steemit Co-Founder Dan Larimer; the project has gone though many iterations to get to the incredible platform it is today! all the while ensuring a social contract that has ushered in early investors with a proportional slice of the pie on the later platforms.

Bitshares 2.0 is built from the ground up using the Graphene toolkit developed by the team to Cryptonomex. It's primary goal is to provide a Decentralised Exchange to allow near real time trading without having to trust centralised entities!!, The platform has many feature some of the more notable one listed below:

3 Second block times
Massively scaleable
Decentralised Asset Exchange
Account name allowing transfer to people not public key hashes
User Issue Assets allowing anyone to register their own token on the blockchain
Price-Stable Cryptocurrencies providing derivatives of Fiat currencies and Commodities such as USD,CNY, Gold, Silver etc..
Margin Trading and Short Selling allowing collateralised loans from the chain to allow you to go long or short any asset
Dynamic Account Permissions allowing for easy name base multisig; which can be performed on chain and approval's can be withdrawn
Stakeholder-Approved Project Funding allowing stakeholders to vote on work proposals to fund development, marketing and other initiatives
On Chain Production Markets allowing to wisdom of the crowd to estimate future outcomes and profit from their accuracy

As you can see from the list above the capabilities of this platform are huge! and i am sure people will be chiming in telling me about many important features i left out.

All these features jam packed into a slick looking wallet; which has choice of Full Node, Lite Client and Web Clients. These web clients are even customisable so the projects such as Maker DAO (Ethereum base market pegged asset trading on Bitshares) can port the code and introduce there own front end and trading platform.

Fundamental Analysis

There are some important points of interest when it comes to analysing the Bitshares ecosystem going forward and the potential that is yet to be realised.

Bitshares is Steem Big brother! they are both built on Graphene and although their operations and goals maybe different they are well placed to interoperate with each other via side chains in the future; imagine buying Gold with your SBD, or using SBD to take a loan on CNY and short the market.
Steem is being actively developed... Given these chains are very similar developments in one chain can be utilised easily in the other chain
Peer plays (another Graphene based chain) a gaming platform about the rock the crypto currency space is being actively developed and has released a dividend function which as stated above could be easily integrated into Bitshares
November 5th is approaching; the social contract mentioned above means that holders of AGS an PTS got a vested stake in Bitshares which as with Steempower could be withdrawn over time in regular intervals.. on the 5th of November this social contract is completed and all vested funds will be distributed; this is like a mega halving; which will decrease supply coming into the chain by a factor of 10+
Cryptonomex is still actively focused on obtains partnerships and affiliates for the Bitshares platform
Steem is showcasing the scaleablity of the Graphene toolkit with transactions per second rates nearly surpassing Bitcoin the most widely used cryptocurrency of them all; it is achieving this without even breaking a sweat with plenty of capacity left in reserve

As you can see with the information above Graphene toolkit enables developers to build on the platform and the beauty of using the same underling platform is that developments in 1 project can benefit any platform running on Graphene!
It is also well placed to be the decentralised Exchange for sidechained Graphene platforms (Bitshares, Steem, Peer Plays, Muse and Play) allowing all platforms to interact and trade via it Decentralised exchange.
Technical Analysis
Longer term view

Looking at the market price of Bitshares it is not a pretty picture at a quick glance; but if you take a moment to take in the longer term picture you may see that the not so pretty picture actually looks quite enticing from an investment point of view (This is not investment advise!). Taking a look at the weekly price chart below we can see:

Double bottom at 470 satoshis
Williams %R currently showing oversold (Marked with Blue squares)
RSI Bullish divergence (Marked with orange trend lines on price and RSI)
OBV Bullish divergence (Marked with Yellow Circles)
First serious level of resistance 100% above current market price
Second and Third resistance levels 200-300% above current price
In the last few weeks average volume is at an all time high (See cloud of volume bars)

All these indicators and the price has barely moved; to be fair price is up 50% from the double bottom low but the indicators compared above are based off a much higher price point than the current market price of 760 satoshis. Also to be considered in recent lead up to the Bitcoin halving bitcoin has increased in value over 100% so in BTC term the price is 100% more than 3 months earlier; this may also has contributed to the slower absolute BTS price movement.

Short time view

The short term time frame does paints more of a neutral picture with the market currently ranging below the 200d MA and above the 50d MA but currently sitting on horizontal support at around 722 satoshis looking at the order book we can also see large support at protecting this level. if these supports break we maybe lucky enough to see a pull back to the 50d MA or failing that a key fib level and horizontal support around 630-640 sats. OBV shows that volume is flowing into this market in large spurt and not selling off during the pull backs in price. OBV is showing a higher reading than the previous low on the 17 July and initial peak at the end of June which is an encouraging sign.
RSI has broken it trend line which had recently touch the overbought level, it has since come down substantially and is resting on it own horizontal support; this will leave plenty of headway for a rally. OBV is showing a neutral reading.

Conclusion

It is my opinion that resolving the November 5th social contract and all the synergies that are ripe for the picking between Bitshares, Steem and Peer Plays and all developments that have been made in these platforms that will be considered for inclusion to Bitshares will mean more value in the platform.
With a market cap of 12.5 million it is my opinion that Bitshares is currently significantly under valued and within the next few months it will be a whole different ball game.

Remember this is not investment advise and be sure to do you due diligence
If you have not yet checked out the Bitshares platform i highly encourage you to do so by visiting https://bitshares.org/; check out the features and test out the client. The light client is my preferred option - requiring no blockchain download you will be up and running in under 5 minutes; there is also a web wallet that will have you signed in less than 1 minute.