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Bitcoin News and Start of a Possible Breakout

July 3, 2017 at 15:42 by Daniel Green

After a prompt upturn from yesterday’s daily low of $2,375.34, bitcoin began trading today at $2,474.29. This was followed by a short period of sideways action and slightly ambiguous trading, that in the end, resulted in bitcoin briefly breaking above the 8/1 Gann diagonal line. Price seems to be holding at $2,557.34 due to rather strong resistance, which seems to have formed below the currently descending outer trend line. This may be the start of another bull run, but we will need to see more volume and price action across all major exchanges before a complete run-up is confirmed. However, caution is still advised despite these positive tendencies. We could, on the other hand, also witness bitcoin breaching resistance at multiple points, only to have lacking volume result in a pullback or a full retrace.

More prominent news outlets have also started reporting on another potential breakout in price. Even Holland’s Business Insider is citing new highs at levels above $4,000, with a reserve concerning possible further corrections until the upswing is in full force.

Another worrying fact is that a lack of new users may start to affect the potential future growth of the whole crypto space in general. In one of the latest articles posted by Cointelegraph, bitcoin adoption across the board may be on the decline. Unspent transaction outputs have started leveling off after almost 24 months of stable growth. The bitcoin mempool has dropped substantially in size from the end of June high of 32,956,965 bytes down to the current 4,263,000 bytes.

With a potential hard fork looming and numerous competing solutions/proposals to bitcoin network congestion, traders have started hedging with other crypto currency alternatives. The most pronounced being ethereum, litecoin, and ripple to name just a few.

Litecoin is especially garnering a lot attention in the media. The team behind the formerly bitcoin exclusive omni protocol has started prepping unit tests for the already functioning segwit-enabled LTC network. Since litecoin is almost technically identical to bitcoin, the majority of protocols and accompanying tech/assets could be transferred across the competing chains. Users may end up moving to litecoin in order to avoid the ongoing drama and hard fork uncertainty.

If you have any questions or comments concerning bitcoin, please feel free to use the form below and reply or comment.

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