Bitcoin and Bitcoin Cash Swings Continue after Cancellation of a ‘Hard Fork’ : Bitcoin extended its losses earlier during today’s Asian session, testing the key support level and 50% Fibonacci retracement level of $5,560.
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Meanwhile, Bitcoin cash (BCH), saw a massive spike during the first hours of trading, reaching $2,800 versus the USD, before pulling back down to the $1,400 area.
The crazy swings come in the wake of last week’s cancellation of a ‘hard fork,’ or forced split, of Bitcoin. The proposed fork would have created a new version of Bitcoin, known tentatively as Bitcoin 2x after the upgrade plan behind it, Segwit2x. Bitcoin Cash appears to be attracting investors and network operators, or miners, who had supported the 2x fork. The next support level for BTC/USD is set at 61% Fibonacci level of $4,990.
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On the other hand, Bitcoin’s cousin, Ethereum was little changed, and mildly down as it consolidated above the flat daily setup of the Ichimoku Kinko Hyo’s cloud.
Financial markets in another volatile week
Financial markets look set for another volatile week as top-tier economic data dump amplifies price swings driven by speculation about the US fiscal policy. The main driver of the US dollar is expected to be politically inspired, and its volatility may be compounded by a high-profile speech from Fed Chair Janet Yellen as well as the release of CPI and retail sales statistics later in the week.
On the economic calendar…
Other than this, on the economic calendar today we had the UK’s Rightmove House Prices (NOV) earlier during the Asian session, and Japan will release their Machine Tool Orders for October at 6 AM GMT. Later during the New York session, BOJ Governor Kuroda scheduled to speak in Zurich at 5:45 PM GMT. The US Monthly Budget Statement (OCT) is scheduled for 7 PM.