Volatility has returned this week with Bitcoin and many other cryptocurrencies falling into the red after making all time highs. Bitcoin reached an all time high in the $2,700 range with some exchanges reaching as high as the $4,000 range for 1 BTC. Analysts polled by Coindesk attributed the downturn to profit taking from traders. Many of those polled said that they thought this sort of behavior was normal and healthy for the BTC market. This sort of thing happens when you have a very sharp increase of of price over a short period of time. The good news is that we seem to have found support at the $1,850 level and the price is now recovering.
Below is a chart I drew up to show this. The Blue ellipse on the top is the high we hit last week. The yellow diagonal line is a line of support along that upward price rally. The yellow ellipse is where the price broke below that line of support. As you can see, it fell, had another short rally, followed by a big drop where we found new support where the blue line is. Not sure where we are going from here, but will be interesting to see if or when we get back to that level of resistance, which was the all time high (ATH) we hit where you see the red line at the top.
Coinbase experienced some problems last week. I must say, this was the 1st time I saw them go offline. I was trying to finish a purchase through them at the time of this major price reversal, when I got a message saying that the site was down for maintenance, try again later. I then knew that something big was afoot. I didn’t get upset as I knew it was most likely traffic overwhelming their system. What can we expect with something that suddenly has a trading volume that is nearing some of the smaller stock exchange volumes. So I just waited and an hour later I was able to make my purchase.
Some noteworthy up and coming projects I would like to mention. 0x is a decentralized exchange for all those ERC20 tokens everyone is now investing in. You know, all those ICOs coming out of the Ethereum world? Well now there will be a place where you can swap them. This is very exciting news because it’s basically like Shapshift.io for Ethereum tokens. But unlike Shapeshift where a company handles your coins and facilitates a 3rd party trade, 0x is a smart contract running on the Ethereum Virtual Machine. That’s right folks a virtual robot will make the trade for you. And the cool thing about robots is, they don’t need to get paid. So expect this to be much cheaper than any other alternative in the real world. If you are interested in trying this in its test phase, you will need to either download Mist wallet or use Chrome plugin with the MetaMask wallet. It’s currently running on the Kovan test network. Here is a snapshot of what the interface looks like which I was playing with earlier today with testnet coins.
Lastly I would like to mention a project that is going to offer a different kind of VPN solution for people. Mysterium is trying to build a decentralized peer to peer (P2P), server-less network of nodes to give privacy back to people as well as financially incentivize those that want to operate a node for the network. They believe that their offering of this VPN service will be competitive because of the network (Ethereum) it will be deployed on, as well as the open nature of the project. Because anyone can join and donate resources and or run a node and get paid through their token MYST, the founders believe it will be hard for any other VPN provider to compete with them in price. They are holding an ICO starting on May 30th 2017. To learn more you can go here.