Home » Featured » Bitcoin Price Analysis August 30
Click Here To Hide Tor

Bitcoin Price Analysis August 30

This week, the price of Bitcoin continued its sideways trading within the $20 range that has been active since August 6th. Bitcoinmarkets exhibited weakness overall, leading to a failed attempt at $585 to last week’s expected break of $600. This month’s price action resembles the pattern from the beginning of June to the end of July 2016, right before price broke downwards. Bitcoin fundamentals are not bullish either. Apart from Bitcoin Core release of version 0.13.0, there was no news to push prices higher.

Deep 1.png

The range over the period of August has been dull, trading within the $560 – $600. Trading forums have been deserted. Long periods of small up and down movements are uncertain. As of writing this, Bitcoin is trading at $573, right below mid level resistance level at $580.

“BTC market is pretty boring with low volume and price movement, people are talking about other coins and XMR and pretty much anything else that’s less boring.”

After the BitFinex hack sell off on August 2, price retraced and made three attempt to $580 before breaking up to $600. Thus, this level will require significant buying pressure to break. If the current attempt fails, then a retest of the lows may play out before any upside.

DEEPEST 1.png

Price will remain subdued in the short term and with the effect of failing to break up $600, a retest of lows $524 – $534, indicated by b above, would serve as a second bottom for another go at $600 +. The market looks weak.

Failed break out.png

Both exponential and simple moving averages are clustering, forming bands right above price on the 2H, 4H and 6H charts. Last week’s anticipated break of 7, 30 and 50 day EMA on the 6H failed at $585 and price crossed back below.

4 h.png

It is pretty uncertain at this point. The 4 H chart above shows where price sits and potential price targets in the event of a break. If another attempt to break $578 fails, where the 100 EMA crosses, then a dip back to $560 will follow.

Correction similar.png

The current price action resembles a correction, similar to the larger correction between June 19 – July 30. Any upside here is limited. Perhaps exhaustion and lack of a clear signal will force a break down this time round.

BITCOIN FUNDAMENTALS

South African Central Bank Embraces Blockchain and Cryptocurrency

The Reserve Bank of South Africa made public its openness to blockchain, cryptocurrency and distributed technology as innovations for its financial industry. According to Fin24Tech, Lesetja Kganyago, Governor of the South African Reserve Bank (SARB), made the announcement at a Cybersecurity Conference in in Johannesburg saying,

“As a central bank, we are open to innovations despite the different opinions of regulators on matters such as crypto-currencies. We are willing to consider the merits and risks of blockchain technology and other distributed ledgers”

These remarks come 2 years after SARB released a paper on Bitcoin and Virtual currencies. Most recently, several domestic banks have experimented internally with Bitcoin and ethereum.

Russian Ministry of Finance Tracks Back on Bitcoin Ban

Over the past year, Russian regulators, its judiciary and parliament have disagreed over how to treat bitcoin and virtual currencies. The Ministry of Finance initial position was an outright ban on virtual currencies in a law proposed to criminalize related activities.

This week, Alexei Moiseyev, the deputy Minister of Finance denounced the previous ban on Bitcoin according to Fork Log. Alexei’s department plans to sit down with industry experts to amend the law on cryptocurrencies. Russia intends to classify bitcoin as foreign currency and allow its citizens to resell, exchange and use it for cross border transactions.

The bill however, is clear on retaining the powers of the Central bank as the exclusive issuer of money.

4 Global Banks partner to Launch an altcoin ‘Settlement Coin’

Clearmatics Technologies, BNY Mellon, Deutsche Bank, Santander and UBS have teamed up to develop a digital currency tailored for clearing and settling trades on top of the blockchain. The Financial Times reported the banks hope to use this ‘utility settlement coin’ to speed up back office processes and free up capital incurred in costs of up to $80 billion.

Blockchain technology has been popular amongst other banks, who are working on private altcoins for settlement. Goldman Sachs and Citigroup announced ongoing development of SETLcoin and Citicoin.

None of these projects are commercial. However, the focus on private digital currencies is bearish on the price of Bitcoin in the short to medium term, as attention shifts from the open source Bitcoin blockchain.

Bitcoin Weekly Price Forecast

This week I am neutral and would not recommend getting into a position. We can either break out to retest the $545 – $560 buy zone or crawl back up to $600 resistance but with limited upside. In this trendless and contracting market, it is better to sit on the sidelines and wait for a clear signal. In the coming weeks I expect a drop back to $524. The market needs to visit the low $500s before we see $600+

This week, the price of Bitcoin continued its sideways trading within the $20 range that has been active since August 6th. Bitcoinmarkets exhibited weakness overall, leading to a failed attempt at $585 to last week’s expected break of $600. This month’s price action resembles the pattern from the beginning of June to the end of July 2016, right before price broke downwards. Bitcoin fundamentals are not bullish either. Apart from Bitcoin Core release of version 0.13.0, there was no news to push prices higher.

Deep 1.png

The range over the period of August has been dull, trading within the $560 – $600. Trading forums have been deserted. Long periods of small up and down movements are uncertain. As of writing this, Bitcoin is trading at $573, right below mid level resistance level at $580.

“BTC market is pretty boring with low volume and price movement, people are talking about other coins and XMR and pretty much anything else that’s less boring.”

After the BitFinex hack sell off on August 2, price retraced and made three attempt to $580 before breaking up to $600. Thus, this level will require significant buying pressure to break. If the current attempt fails, then a retest of the lows may play out before any upside.

DEEPEST 1.png

Price will remain subdued in the short term and with the effect of failing to break up $600, a retest of lows $524 – $534, indicated by b above, would serve as a second bottom for another go at $600 +. The market looks weak.

Failed break out.png

Both exponential and simple moving averages are clustering, forming bands right above price on the 2H, 4H and 6H charts. Last week’s anticipated break of 7, 30 and 50 day EMA on the 6H failed at $585 and price crossed back below.

4 h.png

It is pretty uncertain at this point. The 4 H chart above shows where price sits and potential price targets in the event of a break. If another attempt to break $578 fails, where the 100 EMA crosses, then a dip back to $560 will follow.

Correction similar.png

The current price action resembles a correction, similar to the larger correction between June 19 – July 30. Any upside here is limited. Perhaps exhaustion and lack of a clear signal will force a break down this time round.

BITCOIN FUNDAMENTALS

South African Central Bank Embraces Blockchain and Cryptocurrency

The Reserve Bank of South Africa made public its openness to blockchain, cryptocurrency and distributed technology as innovations for its financial industry. According to Fin24Tech, Lesetja Kganyago, Governor of the South African Reserve Bank (SARB), made the announcement at a Cybersecurity Conference in in Johannesburg saying,

“As a central bank, we are open to innovations despite the different opinions of regulators on matters such as crypto-currencies. We are willing to consider the merits and risks of blockchain technology and other distributed ledgers”

These remarks come 2 years after SARB released a paper on Bitcoin and Virtual currencies. Most recently, several domestic banks have experimented internally with Bitcoin and ethereum.

Russian Ministry of Finance Tracks Back on Bitcoin Ban

Over the past year, Russian regulators, its judiciary and parliament have disagreed over how to treat bitcoin and virtual currencies. The Ministry of Finance initial position was an outright ban on virtual currencies in a law proposed to criminalize related activities.

This week, Alexei Moiseyev, the deputy Minister of Finance denounced the previous ban on Bitcoin according to Fork Log. Alexei’s department plans to sit down with industry experts to amend the law on cryptocurrencies. Russia intends to classify bitcoin as foreign currency and allow its citizens to resell, exchange and use it for cross border transactions.

The bill however, is clear on retaining the powers of the Central bank as the exclusive issuer of money.

4 Global Banks partner to Launch an altcoin ‘Settlement Coin’

Clearmatics Technologies, BNY Mellon, Deutsche Bank, Santander and UBS have teamed up to develop a digital currency tailored for clearing and settling trades on top of the blockchain. The Financial Times reported the banks hope to use this ‘utility settlement coin’ to speed up back office processes and free up capital incurred in costs of up to $80 billion.

Blockchain technology has been popular amongst other banks, who are working on private altcoins for settlement. Goldman Sachs and Citigroup announced ongoing development of SETLcoin and Citicoin.

None of these projects are commercial. However, the focus on private digital currencies is bearish on the price of Bitcoin in the short to medium term, as attention shifts from the open source Bitcoin blockchain.

Bitcoin Weekly Price Forecast

This week I am neutral and would not recommend getting into a position. We can either break out to retest the $545 – $560 buy zone or crawl back up to $600 resistance but with limited upside. In this trendless and contracting market, it is better to sit on the sidelines and wait for a clear signal. In the coming weeks I expect a drop back to $524. The market needs to visit the low $500s before we see $600+

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Captcha: *