Introduction - What is BELA?
Belacoin (BELA) is a crypto-currency token that considerably interests me just now because it currently has real-world application in the form of a chess game - Bellachess - which is available to download from the Google Play Appstore, and pays out BELA when you win a game.
The development team also have the intention to integrate the currency into any number of future projects, the most important to-date is the (still under development) photo sharing App - BelaCam. Which will pay users when people Like their photo uploads.
You can read more about both projects here - http://www.belacoin.org/
It doesn't take much imagination to see how profoundly important and potentially profitable the BelaCam application in particular could be for investors/holders of Belacoin when we look at the user base of popular applications such as Instagram and SnapChat, and exactly how much they are valued at. Alongside these platforms, Facebook and Twitter are also still heavily image-sharing based. What separates BelaCam from all of these platforms is the use of blockchain technology and payment to users for sharing their content. That is the 'unique selling point', and 'killer-app' if you will which could help spur rapid adoption and thus an increase in BELA value.
BELA Price Rise
Between the 21st and 25th of February the price of BELA climbed rapidly from 0.00002688 up to 0.00006889 - a 256% increase in value, and a new all time high.
The main reason for the rise can be attributed to online posts from the development team that:
(1.) Closed Alpha testing was underway,
(2.) Screenshots of the product would be soon made available / marketing blitz,
(3.) Listing on Bittrex had been officially applied for.
So far, it looks like the price was pumped up on this hype into a bubble, which has subsequently burst. We can see by looking at the attached chart that the price is now working its way down through a Fibonacci retracement (78,6%... 61.8%... 50%?...).
Support Line A
We've seen a bounce off Support Line A, not falling quite as far as 50%, and returning to the 61.8% level. We need to watch this area closely for an indication of whether the retracement will further continue downwards. We are currently seeing a tug of war at this area. This will likely be guided over the next couple of days as the hype and release of marketing material hits social media. A successful marketing campaign should help keep the price above this level. So could a slip in Bitcoin price.
Support Line B
The next significant key area we should be looking at for the possibility of a bounce is at the 50% mark. This currently looks like the most likely area that we'll see a turnaround if support at 61.8% fails, with a likely bottom of Support Line B. We could see prices drop to this area if the marketing material doesn't live up to the hype, alternatively we could witness the effects of "buy on rumour, sell on news", lastly, we could see some continued pressure from the rise in Bitcoin price.
Support Line C
There is also the possibility that factors mentioned above could put exceptionally heavy pressure on BELA. In which case a drop to find a bottom at Support Line C - which is the long-term support line is a possibility.
Disclaimer
These opinions shouldn't be considered as trading advice. Always conduct your own research before making a trade. And only invest what you can afford to lose. Only the whales know which way the waves will flow... and sometimes even they get it wrong.
Trade safely!
Follow CryptoCoinNomad
Facebook - https://www.facebook.com/CryptoCoinNomad
Twitter - https://twitter.com/CryptoCoinNomad
Trading View - https://www.tradingview.com/u/CryptoCoinNomad
Supload - https://supload.com/u/CryptoCoinNomad
