Sideways is the new Up?

in cryptocurrency •  7 years ago 

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

http://www.poloniex.com

Follow me: @jrcornel

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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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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.

  ·  7 years ago (edited)

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

I would not worry about crypto because fiat currency are in consolidation until September but you will experience breakout with fiat. Stay positive and see cryptos at this moment as an opportunity to buy more. That is my thought.

great article resteeming it..hope more people can see it...thanks upvoting my recent blog @jrcornel following you now

Thanks for the resteem!

nice post,
but SBD go down, why?

Not sure. The one's who had been holding it up decided to let it drop? Steem has pulled way back as well. SBD was never meant to trade much over a dollar. It is a price stable currency, at least it is supposed to be.

  ·  7 years ago (edited)

I'm new to this crypto-world, sorry for the dumb question, do u think it's a great time to buy bitcoin and steem now ? or should i wait ? Thank you XD, Laila.

That is tough for me to answer. Personally I am buying some steem and BTC at current prices on the exchanges. However, I would not put your entire investment in at this price. Perhaps buy some and if it goes lower over the coming months you can buy some more.

  ·  7 years ago (edited)

Thank you so much for your advice :)

Winter Burst is coming...

Thanks ... good perspective...

Just going to keep playing with small stuff to buy more Steem and it's fun.

As a long term investor (rather than a "trader") I am definitely still feeling pretty positive... the underlying fundamentals of "is this good and potentially game changing technology" don't seem to have changed... so what the markets do is more based on short term emotions than any kind of real trend. Dips might even be a bit like buying "on sale."

Good points. I agree. At the end of the day it will all come down to whether governments eventually just regulate and accept it or if they try to outlaw it and create their own. They will either go a lot higher or a lot lower from here.

very helpful post bro good job hey can u take a look at my blog i hope u like it

I use to trade FX currency's and typically the summer months are not that good for trading.
The reason is fundamental, school is out, people are on vacation, and so fewer people are trading.
I look for the markets to come back at the end of August first week of September.

Seems reasonable to me!

Nice article!

I honestly think the current situation is just a temporary slowdown, in the long term cryptos will go up

Thank you @jrcornel for sharing information, I am very glad there is a post like this and I can more know what happens in the world market about bitcoin and steem.

Yeah, there were such big moves in the first half of this year. Consolidating for even another month would easily be warranted.

Yep, I agree.

Thank you for the great post. I was going to cash out little to replenish my $USD wallet but I think Ill hold off a little longer.

Thanks again!

Good news..your artikel give all people have knowladge.. Thank you @jrcornel
image
Help me vote and follow.. Im new members

  ·  7 years ago (edited)

I hope bitcoin go back up, it really sucks to see it dropping like this. Great post

I has vote you

good...keep it up

Can't wait for $3000 :(

I like it very much!!! Amazing post, this is something I'm looking for because I only know crypto currency, Thank you brother! I started my Steemit adventure! - Follow me @jakir as suggestions about my future posts will be amazing 👏 thank you very much

I agree sideways are the new up. Nice post.

It is a great post. Thank you for sharing with us. Keep posting.

I'm always uncertain if these sideways moves at the top of mountains are best looked at as consolidation or distribution, I guess there's no way to know until the price breaks one way or the other...

with STEEM I'm wondering how different the chart would look if poloniex wallets were actually working... I think it's probably helping to hold the price up as people fearing a drop are unable to get their coins onto the exchange and dump them... personally I hope they don't get the wallets fixed until the BTC market goes full bull again, what with the the STEEM price movements seeming to follow the BTC price so closely.. although it would be nice to move my STEEM across here so I could power up and vote with more than $0.01...

Well, if people wanted to sell any steem they have on Polo, they could easily convert it to BTC and sell that BTC...

you can convert to btc here on steemit? new here, haven't looked into the wallet much...don't have enough steem here so haven't needed to yet...

The only better feeling than making gains is buying dips.

Unless those dips turn out to be cliffs? ;)

Good perspective -- I really appreciate posts like this that dissect #crypto. I look forward to seeing more of your content in the future! I just followed you, and I hope you'll do the same so we can connect and continue to evolve and learn from each other! Remember, be yourself, because nobody does it better -- Full #Steem ahead :)

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Much ❤

The hype bubble has popped and news about ICO scams arent exactly helping the cause

That is good. That means the next wave can begin "soon" from a much higher base. :)

Amazing post! I like bitcoin trading and want to earn a lot. Thanks for sharing such a nice information.

Yes, it's best to think that Steem will make a sharp jump up, following the bitcoin :)

Well that sideway trend surely costed the impatient me few bucks :) ... It is surely a good news that atleast bitcoin is stable at 2400+ rather then hanging at around 1000 few month back

Yes. It will be interesting to see how it reacts as we drift ever closer to that August 1st date...

As always for any tradeable value it will be on up and down cycle, but over all, cryptos with solid benefits around them like BTC and steem will be on the general bullish trend.

That is the hope, yes.

I agree that sideways is good, for now. Creating a new base here it seems.

These are the moments of keeping calm, do not sell anything out of desperation, on the contrary if there are some extra money to buy something more at a lower value, the month of August will surprise us pleasantly. Thank you very much for this material dear friend @jrcornel
have a nice week

  ·  7 years ago (edited)

I'm making the crypto world friendly and accessible for everybody by explaining acronyms and terms related to cryptocurrency. Please upvote for visibility.

Here I found:

Soft forkBackward-compatible change to the software protocol where only previously valid blocks/transactions are made invalid
BTCBitcoin coin

If there are any missing terms here you want to be added to the database, please comment, so I'll become better.

"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."

Amen! This is the most important thing for everybody to remember. In terms of any traditional market, gaining more than 100% in a few months is INSANE. We're still at huge gains compared to January 1st, and that's the thing to keep in mind. Slow and steady is better than huge up and downswings, IMO.

Yes. We just need to get passed that August 1st date. Once that is in the rear view mirror I think we start to go up again.

great educative post, upvoted

The next big fiat failure should boost it up a bit. Once we get the "soft fork" I think people will be happy too, that should help.

Yes, it will remove a ton of uncertainty as well.

ICO's have become the new gold rush, have to wait for them to run out of steam.

Steam or steem? ;) At what point would you say they have run out of steam?

Water in the gas phase, not intending to run out of Steem! I think they will run their course over the next few months, too many cryptos is not a good thing in my opinion.

thanks for sharing original & helpful content

Well the big ICOs lately have been making the marked drop down quite a bit plus hoax news etc. but the main thing will be the news from china this month about bitcoin so if it goes up in price - good news, if it crumbles down.. even better because we can buy a lot more and wait for the next big fork. Don't get disheartened by the drops in price it is normal for any market and this one is just going to grow up after all the corrections. :)

Yes, I have posted quite a bit about ICOs lately. They need to be regulated at least to some degree. It would help the legitimate projects.

Since two weeks, I do not know what happens to the market, I searched on the net to know what happens, to know the reasons why the value of cryptocurrency is fucking, I have not found convincing answers , It started after the fall of the ether on the platform GDAX and the appearance of the ICO which took their share of the market of the cryptocurrency, in any case I thank you for your interest post

Yep, I think it all boils down to profit taking, slight loss of confidence, and uncertainty about Bitcoin's soft fork coming up in a few weeks.

yes i posted 2 posts about the conference bitcoin in neherland and a report bitcoin , i think that bitcoin & cryptocurrency will increase value , they will skyrocket for me its time to do a big shopping and hold cryptocurrency we can muliply our invest in few weeks

even if there'd be a chainsplit, it wouldnt be too dramatic. People are afraid to miss the train. Shouldnt happen to often though

Everyone needs to be in Micro-Cap Coins to hedge against this crazy volatility!

thanks JR i appreciate all knowledgable help with crypto - am newish and enjoyng learning so quickly here . i reckon it is a buyers market and long term bitcoin is a beauty - i love earning steem here and hope it grows to be a huge value too -

Interesting post, thanks for the info

If BTC can survive the scaling issue and get their mining fees under control I do believe it will just sky rocket up to $10,000 and beyond. The question is will an alt coin solve these issues and do a better job of marketing to the general public before that happens?

Imagine if Amazon came out with its own coin, you could purchase pretty much anything you wanted with it for day to day items.

  ·  7 years ago Reveal Comment