After previously consolidating inside a descending triangle pattern, Bitconnect coin made an upside breakout to signal that further gains are in the cards. The chart pattern spans $40-60 so the resulting climb could be of the same size, taking Bitconnect coin up to the $70 area or higher.
Volume is still a bit weak as traders are likely holding out for the FOMC statement. The Fed is widely expected to hike interest rates so dollar demand could return and lead to a pullback to the broken triangle resistance around $50.
A short-term rising trend line can also be drawn to connect the lows since the start of the week, so this area could act as near-term support as well.
Against bitcoin, Bitconnect coin’s climb has been slightly slower since the former has also been rebounding from its previous drop to the dollar. Mark Cuban’s tweet and outages in a few exchanges have been blamed for the recent slide but it looks like markets are trading on fundamentals again.
Market sentiment could continue to influence cryptocurrency price action moving forward. There have been some resolutions to issues, particularly in the United Kingdom but the upcoming Brexit talks remain a risk for the entire Europe.
According to its website, bitconnect coin is an open source, peer-to-peer, community driven decentralized cryptocurrency that allow people to store and invest their wealth in a non-government controlled currency, and even earn a substantial interest on investment. This means anyone holding Bitconnect coin in their wallet will receive interest on their balance in return for helping maintain security of the network.
This altcoin has a market cap of $287,599,260 with a circulating supply of 6,699,432 BCC and an available 28,000,000 BCC. Its 24-hour volume is $2,197,900.
If the Fed hints that they won’t be hiking rates again anytime soon or might look into other tightening methods like balance sheet reinvestments, the dollar could give up ground to Bitconnect coin from here.