Bitcoin Rallies on Another Fork

FXOpen

Bitcoin prices rallied into another fork of the protocol and fell right after. Litecoin followed a similar pattern of first up, then down.

Bitcoin Rallies Into Another Fork

It’s a fork year for bitcoin! The door opened by bitcoin cash back in August is now in use again. The new (potential) fork is called bitcoin gold with the major change being a GPU-friendly mining algorithm. The supposed ‘snapshot’ happened early this morning on block 491,407. According to a help FAQ by Coinbase, the Bitcoin Gold team will pre-mine 100,000 Bitcoin Gold coins before releasing the software to the public. Unlike previous forks, the network will not be usable for several days until a working software is released.

btcusddaily-oct24-copy

While some of the major exchanges said that they will give the resulting coins from the new fork, they have not opened spot or futures markets for BTG. Due to these reasons, it seems unlikely that bitcoin gold will be a hit with the markets. It’s currently worth about 0.047 BTC on some smaller futures markets.

Back to regular bitcoin! Going into this fork we saw a rush of money into BTC. This led to another new all-time high on October 21st at $6,187 dollars per coin. Last night we saw prices rally from a low of $5,622 to a high of $5,997 after a popular bitcoin exchange announced that they will give out BTG. These moves got quickly reversed as the snapshot transpired and few hours later a low of $5,527 was hit.

Prices on FXOpen are quoted at $5,688 right now and we’re still in an uptrend. To end it, the bears will have to push BTC/USD below the $5,147 swing low. A move below another swing low of $4,123 is needed for a new downtrend. On the longer-term charts, BTC remains in rally mode.

Litecoin Follows Big Brother

To a smaller extent, LTC/USD followed the patterns seen in BTC/USD. However, litecoin was under pressure versus bitcoin because people converted to BTC to get the ‘free dividend’. This meant that LTC/USD topped out days before BTC/USD on October 15th. From here it was a slow slide down, interrupted by bitcoin-inspired rallies.

ltcusddaily-oct24-copy

Now we are seeing a reversal of these money flows. As you can see on the chart above, today’s candle in LTC/USD is bullish versus the bearish candle in BTC/USD. We are currently trading at $57.30 dollars per coin. A break below the $51.11 swing low is needed to definitely end the current rally on the daily charts. On the weekly charts, LTC/USD is still range-bound but the monthly is in an uptrend.

Open an MT4 Bitcoin Crypto account with FXOpen broker.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

The Price of Ethereum Rises Ahead of SEC Decision Bitcoin Price Hits a Month's High, Breaking Key Resistance April Became the Worst Month for BTC/USD Since November 2022 Bitcoin Price Bullish after Halving-2024 ADA Drops to Last Place in the Top 10 Cryptocurrencies

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond
Trader’s Tools

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond

Tesla's stock has experienced significant volatility since its IPO in 2010, driven by its significant technological advancements and status as a leading electric vehicle producer. This article explores Tesla's recent price history, analyses its outlook for 2024 and 2025, and

Commodities

Gold Price Drops Over 3.6% in 2 Days

The price of gold has fallen by more than 3.6% over 2 days, as indicated by today's XAU/USD chart. The day before yesterday, at the opening of the daily candle, the price of gold was $2421 per ounce,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.