A lot is happening this week! The course bounces up and down. And not a bit, the bitcoin rate made movements of no less than ten percent this week. In this price analysis we look at what bitcoin has done in one day, what that means for the long term and how that relates to altcoins such as ethereum, ripple (XRP) and litecoin.
An emotional rollercoaster
The graph above shows the past three days and shows the bitcoin price in euros. Each candle represents five minutes. Sometimes you have to zoom in far to understand how agile the course really is.
What normally happens in a day or in a week now took place in just a few hours. The rate fell by ten percent, but also rose quickly again by ten percent.
And then you think, you can’t do much crazier, but that right orange trend line was also broken again.
You can take advantage of this, especially if you are looking for a good time to buy or to sell. Traders look at the long term, but if the price is in an attractive buying or selling zone, it’s time to zoom in.
This is not advice, but you could say that around 8,850 euros was a good value to buy bitcoin.
The following graph, on the other hand, zooms out completely to see the long-term trend.
We are still on course
We also briefly discussed this graph yesterday. You can see the rate from 2017 above. With this, we want to illustrate what bitcoin phase is now.
We do this based on the moving average of 100 days (100 MA). This indicator looks at the average rate of the past hundred days. The orange line in the graph is 100 MA.
During the 2017 bull run, you see the price fall below that 100 MA four times and then find support again on that orange line. This is indicated by the green arrows. The course fell four times, but received support from the 100 MA and then jumped up.
In 2018, when market sentiment was mainly negative, you see that this also works the other way around. The rate remained constant below 100 MA and every time it seemed as if this long-term indicator would be broken, the rate fell sharply. The hardest blow fell in November 2018, when the rate fell from 5,750 euros to 2,844 euros. In other words, bitcoin was worth fifty percent less in a few weeks. Those were good times to buy.
The 100 MA indicator seems to repeat the pattern of 2017 again. The price has already tested this trend twice and the first time the price bounced up hard. The second time that line was tested was last week. Can we prepare for a ride towards the moon?
Altcoins in satoshi value
Well, how are the prices of the largest altcoins doing compared to bitcoin?
- the blue line is litecoin
- the yellow line is ripple (XRP)
- the purple line is ether
- the green and red candles represent bitcoin
The graph starts on 1 August and is expressed as a percentage growth or decrease. The value of bitcoin is in euros and the value of the altcoins in satoshis. Satoshis are a derived value of bitcoin, each sat represents one hundred millionth of a bitcoin.
What do we get from this graph? A few things, namely that bitcoin has only dropped 0.4 percent since the beginning of this month. The altcoins have fallen much faster, litecoin even by almost 25 percent.
You also see that the moment the bitcoin rate rises, the value of altcoins fall. They cannot keep up with the growth of bitcoin. But this trend is also working the other way. The bitcoin rate will fall from 10 August. The altcoins do not decrease proportionally, so that the value in satoshis increases.