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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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Litecoin price goes to key resistance of $ 80

This morning is positive again for major cryptocurrencies. The bullish start of the day gave Bitcoin quotes up to $ 10,388. Along with it, digital assets such as Ethereum, Ripple, EOS, Bitcoin Cash, Tezos, Litecoin, Stellar’s Lumen, Cardano and more also reported significant gains on Wednesday.

At the time of writing, the total crypto market cap is $ 296.27 billion. Bitcoin dominance has fallen further since the start of the week to 63.1% this morning. The trading volumes have increased and now amount to $ 138.83 billion.

 

Positive news for Litecoin holders

The Litecoin Foundation has announced a partnership agreement with Cred that will provide financial services to Litecoin holders. Cred is a licensed California-based lender and a popular cryptocurrency-based lending platform. The platform operates in 190 countries.

Litecoin (LTC) holders will be able to earn up to 10% on their digital assets through one of Cred’s partners, according to a press release. Some of them are Litecoin Foundation, Bitcoin.com, Uphold and BitBuy respectively. Litecoin holders will be able to receive monthly interest payments for a six-month commitment. And also will have the ability to roll over the assets for additional periods.

 

Technical analysis of Litecoin

LTC/USD has risen 7.64% in the last 24 hours. In addition, the 50-day SMA approximates the 200-day SMA in an attempt to show that bulls have a greater impact on the price.

On the other hand, the formation of a rising wedge on the daily chart suggests that the Litecoin price could soon turn around. Especially if resistances at $ 80 and $ 100 are not cleared in time.

The bulls will need a clear break and close above $ 80 to see a move to $ 95.64 on the cards. At the moment, I prefer the strategy “buy on dips” if we have a potential decline to $ 65.50 – 64.30.

However, if the bears manage to dip the price below this critical support at $ 64.30, the pair will lose momentum. In that case the fall may extend to $ 60.50. There are located the 200-day SMA and trend line of support from the beginning of the year. A clear break below that region could send Litecoin back into the consolidation zone around $ 56.

As for the shorter technical picture, the pair managed to break above the bearish pennant on hourly chart, which invited additional upside pressure on the horizon. A clear break above 95.64 should send LTC/USD for the test of psychologically important $ 100 level.

 

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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