On Wednesday morning all Altcoins are down. Total market capitalization dropped to $ 184 billion, down from $ 189 billion on Tuesday. The average daily trading volume of the crypto market is about $ 54 billion.
Binance has confirmed a security breach, resulting in a loss of 7,000 BTC to the tune of $ 40.7 million. This news put the crypto market under pressure, although the reaction was less severe than could have been expected. At least for now.
Long-term prospects remain positive for Bitcoin
While the short-term momentum is dominated by panic and fear caused by the news of Binance hack, the long-term outlook remains positive. The technical and fundamental picture suggests that the largest digital coin has reached a medium-term bottom. Now we have to see if Bitcoin is ready for a long bullish recovery.
This week, growth rates have allowed it to reach $ 5,800, which was an important support at the end of 2017. And that’s a good bullish signal. From the point of the technical analysis, there is not significant resistance Bitcoin faces on the way to $ 6,050 – $ 6,250.
The reason for the recent growth may be rumors that the world’s largest investment company Fidelity with assets worth $ 7 trillion will launch crypto trading services for institutional investors with a focus on Bitcoin. The company has not yet confirmed this directly, but has recently conducted a survey among 400 institutional investors. The survey showed that half of respondents want to invest in digital assets.
And after a series of rumors, Facebook finally confirmed its work on a digital asset payment system under the name of Project Libra. Facebook plans to release its digital coin with a full ecosystem. Although the creation of a coin may be technologically insignificant, the inclusion of partners and merchants is a completely different issue. Facebook has used its influence to attract merchants and financial companies, as well as to seek partnerships with VISA and Mastercard to achieve a comprehensive payment system.
Stellar Lumen is under strong pressure against the dollar, Bitcoin and Ethereum
Bitcoin remained unchanged while most of the top-20 Altcoins suffered losses. While Binance Coin (BNB), Cosmos (ATOM), Monero (XMR) and Cardano (ADA) are among the biggest losers, the price of Stellar Lumen failed to hold above the $ 0.1040 resistance and fell against the USD.
Last week, Stellar Lumen tested support $ 0.0955 and rebounded after the BTC’s rise. The price even broke above $ 0.0980 and the 55-day SMA (4-hour chart). Finally, there was a break above $ 0.1000. But the price has not managed to close above $ 0.1040. More importantly, we have a downside trend line, located around $ 0.0993 on the 4-hour chart. The same trend line was acting as a strong barrier for bulls in many cases, and prevented upside breakthroughs.
So the intraday signals remain bearish. On the downside, the next key support and bearish goal is $ 0.0900. A clear break below it could lead the price to $ 0.0850. On the other hand, if the price goes up, it will again test the levels $ 0.0980 and $ 0.0990. But a clear break above $ 0.1000 and a 55-day SMA (0.0990 per 4 hours) is needed to see an increase in the upside momentum for retesting 1.1042.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.