End of Week Observations
Let’s start from the beginning of the Week…
Bitcoin had an adventurous journey over the past one week, what happened did not come as a shock, it was always known that when Bitcoin transcended its downward trend towards $5,400, it would bounce and cause an ultra-reaction that saw a ride to $7,800.
In the early hours of Tuesday, during the Asia close, Bitcoin took over/breached the $7,800 mark causing a reaction to $8,500, before recently on Thursday retracing to $7,800. Stabilising on Friday over $8,000.
What caused this reaction?
Unprecedented Volume and what’s known as order book valuing. On Tuesday, Wall St as announced by Nouvive traded bitcoin to the tune of close to $600Mn. Long-term investors of Bitcoin traded BTC close to $8Bn times. This stemmed from volume by South Korea and Japan who brought much needed liquidity – this allows buyers and sellers order to meet. This volume caused a volcanic reaction with shorts closing, this means that as the Price of bitcoin increases, shorts or sells start to close as Bitcoin rides up with a lot of shorts liquidating fuelling volume all the way past $7,800 – Order Book Valuing.
Ethereum to the Nouvive Chief Analyst appears that there is a greater chance that $400 will be seen as opposed to $510. This stems from the amount of selling pressure Ethereum is seeing. Moreover, Nouvive’s recommendation is that Ethereum is overvalued at the current price, this is as a result of their underlying utility being to create DAPPs or Decentralised Applications that cloud the blockchain. Most of these clarified by Cerebellum, Nouvive’s Artificial intelligence programme are Ponzi Schemes orJUNK.
Nonetheless, the market will first see ETH see under $400, before seeing $855, if Ethereum sees over $510 for three consecutive days, this will see a 20% bounce for most Altcoins as they are tethered or positively connected to ETH.
- Venezuala’s Petro-pegged currency is set to launch by August 20th.
- Iran is said to have engaged developers to create their own cryptocurrency to fight US Sanctions.
- One of the Uber Co-founders is going to be launching their own Zero-fee cryptocurrency exchange.
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