Bitcoin appears to have levelled off, showing gains of about $200.00 so far this week, but showing no signs of a massive swing one way or the other. The stability is a welcome respite from the movement the market witnessed over September, where the China ICO block caused Bitcoin prices to plummet, only for the currency to rally the following week.
While day traders and speculators may not like BTC’s current trajectory, long-term buy-and-hold investors should take comfort in a week where Bitcoin behaves somewhat calmly, although the loss of massive gains is, of course, not ideal for BTC bulls.
The price currently sits at a hair above $3,900, and will fluctuate up and down for the rest of the day, I believe, probably by $100.00 or so. This could go up or down, though whichever direction it does sway, I predict that tomorrow we’ll see another return to around the $4,000 mark, give or take $100.00.
In terms of news, there are rumors brewing that another split may be on the horizon for Bitcoin. This would be the second split for BTC, with the last one resulting in the creation of Bitcoin Cash.
The potential split this time revolves around SegWit2x, a proposal to deal with the heavy congestion that BTC has experienced due to the influx of trades bogging down processing time and upping transaction fees.
The blocksize is supposed to increase to two megabytes around November in the second phase, after SegWit’s first phase was approved by miners in August. The sticking point is that SegWit2x requires a 92% consensus in order to avoid a split, an outcome which appears unlikely. (Source: “Bitcoin’s likely to split again in November as debate rages on,” The Economic Times, September 20, 2017.)
BTC’s last split, which resulted in the creation of Bitcoin Cash, hurt the cryptocurrency initially, but ultimately didn’t stop the coin’s momentum as it raced to near $5,000.
This split will likely have a similar impact, with Bitcoin still being the king of the cryptocurrencies, despite having cousin-currencies splinter off.
I expect big things for BTC before the end of the year, with the price rising to at least $4,500. Having said that, the market may be looking for a calmer week following the China ICO fiasco and the ensuing rally.
Don’t expect any wild swings for the rest of this week. Unless news breaks that pushes Bitcoin prices one way or the other, I expect a relatively muted couple of days, with BTC breaking at or near $4,000.