Technical analysis of Oscar Mayer bacon-backed “Bacoin” crypto
Strong fundamentals underpin Bacoin prices, but can it bring home the bacon?
Bacoin is the tasteful new marketing stunt from Oscar Mayer, tapping into the crypto craze with bacon-backed digital coin, the Bacoin.
"Oscar Mayer is the only leading authority to help lead bacon into the future of tomorrow - by creating a currency today," it explains.
There are a lot of promising projects out there, but Bacoin might have what it takes to be a market leader. First, it has the reassurance of real-life backing by a tangible physical asset and might be the best example of bacon on the blockchain to date. Second, its value is directly tied to the amount of social media shares the campaign receives.
Bacoin price technical analysis
However, despite its asset-backing, Bacoin still displays characteristic cryptocurrency volatility, with the value of each Bacoin (BACN) fluctuating from as little as 1 slice of Oscar Mayer bacon (BCNS) to as high as 28 in only 8 hours. At the time of writing, market sentiment for sizzling bacon has cooled slightly. The rapid rise in Bacoin value over the preceding hours may see traders withdrawing, fearing that the market has eaten its fill.
The Bacoin all-time high (ATH) price occurred at around lunch time, US Eastern Time, suggesting that the bulk of Bacoin price support lies with hungry East Coast traders. Those looking to hold Bacoin for the long term might want to be wary of this and can anticipate re-consolidating prices after East Coast traders have eaten.
This pattern has been borne out over the last day of trading, with a distinct afternoon slump as low as 11 BCNS by 5pm, followed by a match of its previous ATH at 7pm. Experts theorise that this is when the bulk of the market had their dinner, and their declining appetite may have triggered an after-dinner slump.
Bacoin's current prices are throwing up red flags, and traders may want to be wary of ongoing price declines into the evening. The prospect of a midnight snack rally might see traders dipping their toes back into the hot dog flavoured water, and anyone who got in at about 10BCNS or under might HODL (HODL) for it.
Bacoin team and fundamentals
Bacoin probably has a solid legal department and marketing team, but until a comprehensive whitepaper, or at least some preliminary napkin scribbles, is released, some caution might be warranted.
The fundamentals are solid though. Its use cases cover a broad range of sandwiches, standalone meals and more complex dishes, and there's a finite amount of bacon in the world, so Bacoin might be naturally deflationary. And if the value continues to grow at current rates, roughly 20x a day, for just a year, then each coin will be worth more bacon than has ever existed in the known universe.
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Disclosure: At the time of writing, the author holds ETH, IOTA, ICX, VEN, XLM, BTC and NANO.
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