Despite Bytecoin (BCN) Gains, Long-Term Holding Is Not Advised
The major cryptos erased most of their losses on Tuesday after a long weekend in the US. One of the major gainers in top 20 was Bytecoin, an altcoin known for its price volatility. It led the top 100 cryptocurrencies with a 38% gain by the end of Tuesday’s trading day. Here’s all you need to know about Bytecoin and its future price action.
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About Bytecoin (BCN)
Ranked 19 on the market cap list, Bytecoin (BCN) is the first cryptocurrency based on the CryptoNote technology with an open source code designed for anonymous cash settlement.
BCN protects the user’s privacy with impassive and anonymous transactions. Developed back in 2012, its project is very similar to Bitcoin. Specifically, it is primarily a peer-to-peer payment system for people to use.
However, its price action is fairly different than most other major cryptocurrencies.
BCN/USD Price Action
Traded versus the USD, It has reached the all-time-high levels twice since January 2018, each time followed by a major crash. Most recently it reached that level around 0.019 on May 8th. Then it erased most of the gains until May 28th as it tested the upper band of the daily Ichimoku cloud. On Tuesday, it appeared to have bottomed out right there as it formed a strong bullish engulfing chart pattern with its 38% gain.
Bytecoin Investing Strategy
The main reason for BCN’s volatility could be as a result of technical issues which came in the way of its gains in early May. Some Binance users experienced reportedly delays in deposits and withdrawals which spread among the community. Keep in mind that even though BCN is listed on a number of exchanges including HitBTC and Poloniex, over 76% of its market share is based on Binance. As a result, traders backed out, speculating an underlying scam. This may have caused the surprising dip in BCN prices.
Analyzing its price from a technical point of view, we could argue that the upper band of the Ichimoku cloud has successfully acted as a support for BCN which may result in further gains for the cryptocurrency in the near future. However, we wouldn’t recommend long-term holding of Bytecoin yet due to its volatile past performance.
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