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Litecoin went up above $ 60

Bitcoin settled above $ 9,300

The crypto currency market has a mixed picture on Wednesday as Bitcoin and all major altcoins fluctuate in narrow ranges during the early Asian hours. Total market capitalization reached $ 251 billion. The average daily trading volume was $ 89 billion. And Bitcoin’s market share reached 66.8%.

BTC/USD hit a weekly high at $ 9,621.8 on November 4 and has been retreating ever since. At the time of my writing, the main digital coin is trading for $ 9,425, down 1.02% on a daily basis. The SMA 100 on the daily chart is located around $ 9,606 and seems to be limiting the recovery. It needs a clear break above it and a weekly high to allow the bulls to gain likely traction for the next goal at $ 10,000.

 

LTC sees optimism return, with the potential to rise again to three-digit prices

Currently, Litecoin is far from its peak value, reaching above $ 360 during the bull market of 2017 and early 2018. However, LTC has the potential for more significant profits, as the coin is considered as undervalued.

The crypto currency is seen as a relatively insignificant asset, although it has established stable liquidity. This makes Litecoin relatively attractive and has the potential for rallying, especially in times of BTC stability. LTC is one of the coins in which active and rapid price movement is associated with an increase in price action.

The coin has also recently saw a spike in daily transactions, to over 67,000 transactions a day, above the average of 18,000 a typical day. Litecoin has also shown its ability to rise in price amid pure speculation. More than 46% of all LTC volumes receive inflows from Tether (USDT), allowing the price to move independently. Also, keep in mind that LTC is still one of the assets that almost doubled its value in 2019, though still behind BTC’s performance.

 

Technical analysis of Litecoin

Litecoin is currently trading at $ 63.58, with increase of 3.75% over the last 24 hours. Yesterday, LTC extended its bullish move to the high at $ 64.02, but failed to keep above that level. That is why this peak is now acting as a short-term resistance.

If we look at the four-hour chart, Litecoin’s struggle to defend the $ 60 support is at its peak. In addition, the price moves within a formed rising triangle pattern. The first scenario is for Litecoin to break above the resistance of the triangle ($ 64) and open the door to $ 70. On the other hand, if the coin fails to clear the $ 64 hurdle combined with a correction below the trendline support, Litecoin can easily approach to $ 50.

In hindsight, a drop to $ 50 would not have a completely negative impact. It is likely that a new LTC demand will be created in the area and the basis for a potential rally towards $ 100 at the end of the year.

The Relative Strength Index (RSI) shows that the price is oversold in the short term (H4) and the reversal is at the beginning. Bulls hold relative control according to the Moving Average Divergence Convergence (MACD).

 

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, ETH and XRP lead the market in retreat on Wednesday

The crypto currency market has been bullish for the past 48 hours. However, gains related mainly to the improvement of the technical picture across the board, however, were unsustainable. Most analysts believe that because of the low volume, the breakthrough on Monday and Tuesday cannot be contained. And that’s why the market is sliding back into the red this morning, led by the first three crypto currencies – Bitcoin, Ethereum and Ripple.

Bitcoin dominance continues to decline, giving the Altcoins more breathing space

Bitcoin has dropped 2.71% in the last 24 hours. Yesterday, the price suddenly retreated from the high around $ 8,500. The negative price action continued in the Asian session today, with BTC touching the intraday low of $ 8,154.6 for the moment. The main crypto currency will have to go back above the morning high at $ 8,327.4 to support the rally to the nearest resistance of $ 8,350. A clear breakout above this level will open the door to the bulls for re-testing $ 8,500.

At the beginning of the month, the total market capitalization of cryptos fell from a peak on Monday of $ 226.12 billion to the bottom of $ 219.94 billion. At the time of my writing, the total capitalization of the crypto market was $ 221.15 billion. And the moderate loss of Bitcoin yesterday led to a slight increase in its dominance. At the time of writing, the dominance of BTC is 67.8%.

In October, the next key period for Bitcoin and the crypto market will be in the middle of the month. This is the SEC’s deadline for approving or rejecting the Bitwise Asset Management’s Bitcoin ETF proposal.

Daily technical analysis of Stellar Lumen and Tron

For the remaining 10 crypto currencies, Tuesday ended mostly in red. Stellar and Ripple led the way down, sliding 5.4% and 4.76% respectively.

Stellar (XLM), which intends to remove its inflation function in the upcoming upgrade, has been struggling to keep its gains from the last 7 days. The coin rose by a modest 5.33% last week and was trading at around $ 0.060 at the time of publication.

The digital currency will have to break through this level in order to keep the upside momentum to the first resistance at $ 0.06222 (yesterday’s high). In the case of a broad-based rebound in the market, the $ 0.06505 level could be back in the game before we see any pullback. If the price fails to move well above 0.0600, we can see Stellar Lumen struggle throughout the day with testing of $ 0.05657 support.

Similarly, Tron (TRX) continued its bearish sentiment today as it dropped from $ 0.0148 to the intraday bottom of $ 0.0137. The daily chart shows us that the market found strong resistance around $ 0.0185 (double high since September) and support in the area at $ 0.0116. The MACD indicator, however, signals a reversal of momentum from the bearish to bullish. Immediate resistance is the 50-day Simple Moving Average (localized at 0.0160). There is also a downside trend line on the daily chart. A clear break above this area will be required to confirm the bullish momentum.

 

 

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 marches toward new and new highs

Bitcoin continues to rise, breaking the $ 10,000 and $ 11,000 levels, currently trading at $ 12,585, a new high for 2019. BTC transactions remain near their peak, namely over 388,000 in 24 hours. For the same period, the major digital asset reached a growth of nearly 10% and a market capitalization of 223.07 billion dollars.

But even more strikingly, the current price rally led to a jump in mining, sending the BTC hashrate (the processor power unit in Bitcoin network) to all-time record values ​​above 64 EH/s.

The mining peak, while the reward for Bitcoin block is still 12.5 BTC, shows some confidence in future price action. Miners have a chance to make a significant return before halving in 2020. Current prices are approximately 3 times higher than the breakeven market price for Chinese miners and may invite more pools to come online.

Many experts believe that Bitcoin (BTC) is run by FOMO at this stage, as the market repeats the situation by the end of 2017. The excitement of the Facebook’s Libra coin and the potential crypto ban in India are also cited as major rally catalysts.

 

What’s more is actually behind the Bitcoin rally?

Apart from the aforementioned reasons, here are some that I think are crucial for the latest appreciation:

Tether (USDT) record supply: USDT-based trading remains a key factor in ensuring sufficient liquidity for the BTC. In recent weeks, new stacked prints have increased the Omni layer supply of USDT to above 3.54 billion, with another 900 million in the Ethereum (ETH) network.

Self-Fulfilling prophecy: BTC is able to add hundreds of dollars within one hour, and the breakthrough above the $ 10,000 psychological level is certainly encouraging. Adding activity from bot-trading to the mix can move the prices even faster.

Altcoin’s season is too late: Bigger profits are currently being gained with Bitcoin’s growth, while the altcoins remain volatile and offer only sporadic profits, highly unpredictable.

Exchange limiting US traders: With less US-based trading for altcoins and tokens, speculation is naturally shifted to the leading coin. At the same time, Asian markets are reviving and increasing volumes for BTC speculation.

 

The growth can continue up to $ 13,000

Quite technically, Bitcoin grew strongly for 8 consecutive days, the longest period of uninterrupted growth since December 2017. Apparently BTC/USD feels comfortable with the formed bottom at 10,000, so it provides a lot of support behind the bulls. And this logically implies further movement to the north with the nearest target around $ 13,000 region.

However, it should be noted that the main coin is quite overbought on all timeframes, making it vulnerable to downside correction. First support is at $ 12,133, where Bollinger Bands’ upper boundary is located on daily chart. A persuasive break below will clear the way to the next bear’s target at $ 11,200. There merges 78.6% Fibo level of the last drop of $ 11,361 to the bottom of $ 10,622 and the 50-day SMA on the 1-hour chart.

Other areas that need to provide support are $ 11,000, $ 10,800 and $ 10,400.

 

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 unstoppable, the crypto market is enthusiastic

Bitcoin continued to gain on Tuesday

Bitcoin remained strong on Tuesday, increasing its market capitalization by more than 60% for the past month. In particular, Bitcoin’s market share jumped to its highest level since September 2017. But earlier today, the crypto market has calmed down after strong growth in the previous days. Bitcoin and most of the top Altcoins consolidate profits in newly opened ranges.

The total capitalization of all digital assets in circulation reached $ 243 billion, compared with $ 232 billion yesterday. And the average daily volume of trade reached 107 billion dollars.

Interest in Bitcoin is on the rise

The question, however, is what is behind this recent rally and whether it is sustainable? Let’s take a quick look at recent possible triggers.

The BTC rally in 2019 is quite different from the rise in prices in December 2017. Over the past year, many exchanges have started and continued to increase their activity and trading volumes. The boost from increasing trading volumes, arbitrage opportunities and higher liquidity creates conditions to make the BTC market more predictable.

In addition, an ecosystem of Stablecoins*, with Tether (USDT) as its leader, facilitated international trade. In addition, Bakkt (Bitcoin full-service exchange, wallet, trading platform and clearing house) has announced that BTC futures will be put into test mode in July.

There is some speculation that the escalating trade dispute between China and the U.S. is playing a role in attracting investors to BTC. Risk-off attitudes because of this global headwind may have added momentum to Bitcoin.

In the past, institutional investors have stayed away from crypto currencies because of several problems, including custody, insurance and regulations. However, the recent developments of major names like Coinbase, Fidelity, Intercontinental Exchange (Bakkt) and TD Ameritrade seem very positive, and the crypto space is definitely more prepared to meet institutional investments than in 2017.

Also FOMO (fear of missed opportunities) has returned to the market and retail investors have become the real driving force behind this dynamic. Bitcoin’s current jump in prices also follows the pattern of growing dominance, while Altcoins temporarily lose their attractiveness.

Bitcoin has been consolidating the recent gains. What’s next?

The price of Bitcoin against the dollar traded at a 10-month high, reaching $ 8,324 yesterday. On daily chart, it is clearly seen that exceeding significant levels such as $ 7,000 and $ 8,000 triggered profit taking, but it quickly ended with a subsequent new wave of purchases. At the time of my writing, the main digital currency is moving around $ 8,000.

BTC/USD is traded comfortably over SMA 200, SMA 50 and SMA 20 on daily chart. So, while that does not change, bulls keep control. Their next short-term target of Bitcoin should be $ 8,500, with a breakthrough over $ 8,200 would provide additional support for the broader market.

Keep in mind, though, that even Bitcoin is headed for $ 10,000, there will be corrections on the way. So, it’s not surprising that the price has retreated a little bit to $ 8,000, and we can see some consolidation around this level.

On the downside, the area around $ 6,000 before was quite strong resistance. However, the BTC finally broke it and it broke out once in early May. So, I think it’s safe to assume that the correction will keep Bitcoin over $ 6,000 for now. In addition, the SMA 20 is located around $ 6,140 on daily chart.

 

* Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets.

 

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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