Bitcoin Value Sinks On XT Uncertainty


The bitcoin value proposition is losing ground today as traders wake up to Gavin Andresen’s and Mike Hearn’s announcement of the public release of XT. The uncertainty introduced by the prospect of a hard fork of the Bitcoin block chain is expressing itself in the chart, and rightfully so: the fork and its bigger block size is technically hazardous and threatens the bitcoins we hold as well as Bitcoin itself.

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Bitcoin Price Analysis

Time of analysis: 07h49 UTC

Bitfinex 4-Hour Chart

Bitfinex 4-Hour Chart

From the analysis pages of xbt.social, earlier today:

Price is falling away to previous lows on some – and way below – in other exchange charts as the indicators clock up on divergence.

We do not have a clear idea of where this is heading, and members are encouraged to hold short until their dynamic stop loss forces exit. It is also possible to close your trade at significant levels (such as the current previous low) and to then re-enter trend, but – as with flying – take-off and landing are the most risky moments.

At 17h00 UTC, Saturday, Mike Hearn officially launched the renegade Bitcoin fork software XT that now creates uncertainty in the Bitcoin ecosystem and could potentially damage (or ruin) Bitcoin. The market was in the process, yesterday, of tending lower and the announcement has provided the catalyst for action.

The question is where will it end? Mike Hearn has, on various occasions been described, by developers, as technically incompetent for his buggy bitcoinj software while Gavin Andresen has been accused of worse. The verity of such accusations is not being argued here. The concern is that developers see fit to flout the Bitcoin consensus rules to force their vision and in the process risk other peoples’ money and Bitcoin itself.

As per the analysis outlook offered for the past two weeks, the downside target is $252 / 1550 CNY, with today’s developments opening up $230 and potentially $210.

Summary

The downside is now a chasm of uncertainty and negative mood, just like the conditions that surround XT and the contentious action by a small minority of renegade developers. Targets are $252 / 1550 CNY and, potentially, $230 / 1500 CNY.

Bitfinex orderbook depth and Buy/Sell Volume:

 Bitfinex depth buysell volume 14h37 160815

Click here for the CCN.LA interactive bitcoin price chart.

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Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
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