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Are the Ethereum Bulls ready for a recovery?

The fear of COVID-19’s proliferation and impact continue to keep more investors out of the market

Last week and this Monday were difficult for the global financial markets, and the crash was caused by the Coronavirus pandemic. Folowing by traditional financial instruments, the crypto market also collapsed and Bitcoin lost 34% in the last 7 days. Ethereum dropped with 43%, Ripple’s XRP crashed with 30% and Bitcoin Cash lost 33%.

This morning, major crypto currencies have found some support. But I expect the risk appetite to continue to be affected by news around the Coronavirus. Despite the current apparent stability, investors seem to be shying away from the market, preferring to watch only from the sidelines. The downturn last week showed that Bitcoin’s safe-haven status was shattered.

Recovering over $ 6,000 will be required for the BTC bulls to pave the way for more price action towards $ 7,000. But BTC/USD is not ready technically. In order to pave the way for significant price movements north, the pair must overcome the sales pressure at H4 50 SMA ($ 6000). The next critical resistance is at the $ 7000 psychological level. And after that comes the 100 SMA, which is localized at $ 7,339 on a four-hour chart.

Earlier in the week, total crypto market cap hit a high of $ 164.76 billion before slipping to $ 131.81 bln. Tuesday’s bullish momentum led to a recovery of $ 150.13 billion on Wednesday morning.

Bitcoin dominance returned to levels of 64% on Monday’s sell-off. At the time of writing is around 63.8%. 24-hour trading volumes in the crypto market amount to $ 121.05 billion.

 

Ethreum in consolidation after last week’s collapse

Like other crypto assets, Ethereum is experiencing a huge panic sell-off and the price has plummeted from $ 206 to $ 86. However, after rising above the $ 100 level, Ethereum began its appreciation against the USD yesterday. But mainly the price is consolidating into a triangle on a daily chart and is now trying to break the downside trend line of the figure. On the hourly chart Ethereum is currently testing the lower curve of the 20-day Bollinger Bands.

Immediate resistance is seen at $ 115.50, which is 23.6% Fibo correction on the recent drop from $ 206 to the bottom $ 86.46.

If the bulls manage to break through the important $ 120 resistance zone (also H1 100-day SMA), Ethereum may be ready for a strong upward move in the near future. The next key obstacle for the bulls is near the $ 132 and $ 146 levels.

However, if Ethereum fails to break both the triangle and the resistance at $ 120 up, this could trigger another decline. The closest support levels are close to $ 112 and $ 110.

The RSI indicator sits on the edge of the oversold area. The SMA 200 is about to cross above SMA 20 on a daily chart. If it does, we will have confirmation of the heavily bearish “death cross” model. What does all this tell us? The answer is that while bulls may responsible for short-term movement, overall market sentiment remains bearish. In addition, MACD also slumping down.

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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.

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BTC/USD erased its February gains

The price of Bitcoin hit a monthly low

Bitcoin price has been in a downtrend since Monday. At the time of writing, the price of Bitcoin has already dropped by 8.60% for the week. BTC/USD is on the verge of returning all profits generated from Coronavirus from $ 8,303 to $ 10,489. During the decline, the price fell below the main bullish trend line of support at $ 9,580, the $ 9,000 level and the 200-day SMA ($ 8,800). The BTC/USD pair hit a monthly low of 8,555 earlier this morning and now traders are struggling to keep the price above $ 8,500 support and 200 SMA.

The current fall is mainly due to the rejection by the SEC of another Bitcoin ETF. The US Securities and Exchange Commission on Wednesday rejected the proposal for a Bitcoin Exchange Fund (ETF) submitted by Wilshire Phoenix. The regulator cites Wilshire Phoenix’s failure to prove that the Bitcoin market is immune or sufficiently resilient to market manipulation.

The altcoins have also sunk, with many coins in the top 20 having suffered double-digit losses in the last 7 days. Ether (ETH) pulled back 14.12% to trade around $ 225. This is a staggering turnaround given that the digital asset was trading at $ 286 less than 2 weeks ago. Litecoin (LTC) lost 13.61%, EOS fall with 10.45%, and Ethereum Classic (ETC) dropped 13.49%. Surprisingly, Chainlink (LINK) rose 4.71% yesterday and Tezos (XTZ) gained 3.73%.

The total market capitalization of cryptocurrencies now stands at $ 246.8 billion, with the Bitcoin dominance index rising to 64.4%.

Where can BTC/USD find some support?

Now when the market has taken out some key levels, let’s see where we can find support.

The BTC/USD pair appear to respect Fibonacci adjustments. So, keep an eye on the 61.8% Fib correction on the rally from $ 8,303 to $ 10,489 at $ 8,015.00. This is obviously close to the psychological level of 8,000. For that reason, this support is key. However, if the bulls fail to protect $ 8,000, there is a chance of a further decline to the $ 7,000 and $ 6,800 levels.

Before that 8,500 is also a good level of support as the price has been struggling a lot there in the past.

On the upside, the first resistance is close to $ 9,000. Successfully daily closing above the $ 9,000-9,020 region is likely to set the tone for another increase in the coming days.

The RSI indicator is in the oversold zone on daily chart and is still maintaining a downside slope. And that means that sales activity is still high, ignoring the condition of oversold region.

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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.

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Will we see a breakthrough on Bitcoin under $ 7,000?

This morning, the crypto market was a red sea for the major digital assets. Bitcoin and all major Altcoins are moving outside the latest ranges amid rising bearish sentiment. EOS led down by 3.49%. Ripple’s XRP and Stellar’s Lumen did not lag far behind with losses of 3.04% and 3.01% respectively. Binance Coin (-1.43%), Bitcoin Cash ABC (-2.79%), Ethereum (-2.05%) and Litecoin (-1.63%) also struggled.

The total market capitalization of cryptocurrencies dropped to $ 194 billion, while the average daily trading volume remained unchanged at $ 55 billion. Bitcoin’s market share rose to 66.7%.

 

For now, the bears are in control of Bitcoin, but a rebound is not excluded

Over the last two days, the price of BTC/USD has been consolidating in a very narrow range between $ 7,200 and $ 7,523. Earlier this morning, however, the price of the main digital asset fell below the lower border of the range and declined by 2.12% over the last 24 hours.

Bollinger Bands shows an extension of the one-hour chart, which usually means there is a break on the way.

And as the breakthrough was downside, the bearish trend, which formed at the end of June from a high of $ 13,764, remained completely intact in the short-term, supported by the decline for the current week.

For the bulls, Bitcoin should make sustainable move above $ 11,000 to form a short-term uptrend.

 

Bitcoin should stay above $ 7,100 to prevent possible dips below 7,000

The nearest support is located at the bottom line of the one-hour Bollinger Bands at $ 7,129. There is located also a 61.8% Fibonacci retracement of the last rally from $ 6,618 to $ 7,933.4.

Once this area it is broken, bearish pressure is likely to continue with a further focus on psychological $ 7,000 level. And in the case of longer extended sales, Bitcoin could target a 78.6% Fibo level at 6,890. A clear breakthrough there will drive the price for testing of psychological $ 6,500 level.

On the upside, a strong resistance zone we have between $ 7,253 and $ 7,415. That region hosts several indicators, including BB’s middle line on H1 chart, SMA 50 (7,323) and SMA 100 (7,414) also on the hourly chart.

However, Bitcoin will need support from the broader crypto market in order to further rebound above this area. An additional correction to $ 8,000 should meet resistance at $ 7,523, $ 7,623 (23.6% Fib level) and $ 7,933 (November’s end high).

 

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.

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Bitcoin bulls need to clear $ 9,000 to mitigate the downward pressure

The overall picture of the crypto market

The cryptocurrency market has a mixed picture on Wednesday. Bitcoin and all major Altcoins are trading in ranges with bearish bias against the backdrop of declining trading activity. The total market capitalization of cryptocurrencies dropped to $ 239 billion from $ 240 billion the previous day. Bitcoin’s market share dropped to 66.0%.

BTC is again at a crucial stage, with expectations from many traders for a rally at the end of 2019. But market players are also worried that the price may plummet again to 8,400. Altcoins have made unpredictable rallies since liquidity is restored for a smaller selection of coins and tokens.

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Bitcoin is still looking for a bottom

BTC/USD had a bearish start earlier today after the bullish Tuesday. So far this Wednesday, the price of the largest digital asset has dropped from $ 8,832 to $ 8,715.1.

At the time of writing, Bitcoin is trading lethargically above $ 8,700. But the $ 9,000 resistance must be broker in order the bulls to clear their way to the next $ 10,000 target. In the area of ​​$ 9,020 is the upper limit of Bollinger bands on the four-hour chart and 23.6% Fibo correction level from $ 10 329 to $ 8 636.4.

At the same time, the resistance trend line of the downward price channel since the end of June on a daily chart has been tested many times, but unsuccessfully so far. A clear break above this downside channel could finally put BTC on a recovery path towards $ 14,000.

On the downside, there are 3 support levels at $ 8,760, $ 8,675 and $ 8,540. The $ 8,760 area collects the average Bollinger Bands curve, the 10-day SMA of the hourly chart, and the bottom of the previous 4-hour candle. A clear break below this support area will lead the bears to test $ 8,675. If the bearish momentum extend, it is possible to see a test of $ 8,540, where is a 50% Fibo correction of the rally from 3,227 to the high of June 13,960.

 

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.

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