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ETH/USD controverts the bearish mood, consolidating over $ 240

 

The price of Bitcoin is stagnant below $ 10,000, while the US stock market is reaching record highs. The bullish trend and V-shaped recovery in US markets also show that the appetite for risk assets and single stocks is increasing. And Bitcoin’s struggle to show such a trend may be a hint that a retreat is imminent. At the same time, ETH/USD may have some opportunity for a new bullish rally…

As for the other major coins, Tuesday was a bearish day. Cardano’s ADA slipped 4.05% to lead the others down the road. EOS (-1.41%), Ethereum (-1.02%), Litecoin (-1.23%), Ripple’s XRP (-1.49%), Stellar’s Lumen (-1.76%), Tezos (-1.36%) and Tron’s TRX (-2.34%) also suffered relatively large losses.

As yesterday, so this morning the market is calm, except for a few coins. MakerDAO had another bullish break and managed to jump over $ 700. SwissBorg ranked 92nd in Coinmarketcap, grew 32% today. Kyber Network is also on our list with a 13.4% price jump after yesterday’s bullish break.

For the day ahead, the breakthrough of Bitcoin to $ 9,900 would provide strong support to the wider market. At the time of writing, the total market capitalization was $ 273.04 billion. And the dominance of Bitcoin was 66.04%.

 

Is ETH/USD on the threshold of a new rally?

Rafael Schultze-Kraft of Glassnode recently pointed out that the number of new daily Ethereum addresses that perform more than one ETH transaction has grown sporadically since January. And already reaching peaks last recorded in 2018. The number of Ethereum blockchain wallets has already exceeded 100 million for the first time since the creation of the cryptocurrency.

This heightened blockchain activity has led to an increase in Ethereum transaction fees over the past few weeks. And this is essential because for the last 4 years the price of ETH has been closely linked to transaction fees at Ethereum.

Analysts see this increased blockchain activity as a factor favoring ETH bulls. In addition, the upcoming launch of the Ethereum 2.0 testnet is likely to generate some support for the cryptocurrency to move higher in the coming months.

 

For now, however, Ethereum is consolidating with Bitcoin

From a technical point of view, the price action of Ethereum has been relatively lackluster lately. Buyers are vying for a steady uptrend as the cryptocurrency closely monitors Bitcoin’s price action.

Over the past few days, ETH/USD has been trapped in sideways trading, struggling to gain momentum in any direction. The pair is consolidating after retreating from the top at $ 253.23 last week. ETH/USD saw a significant drop to $ 235 on Sunday, but is now trading above $ 243 and continues to defend the 12-day SMA.

The highly choppy market continues to keep most buyers on the sidelines for now. On the downside, ETH/USD has very strong support at $ 242.00 (50 SMA on a 4-hour chart). If the bears manage to break below it, we can see a retreat to $ 235 and $ 230. There is an SMA 100 on the 4-hour chart, and if it lasts, it may help revive the uptrend. It is possible that more buyers in this region would prefer to enter the market at a lower price in anticipation of profits above $ 250 and $ 280.

But overall, the technical picture remains unclear due to sideways moving indicators. RSI and MACD have shown no signs of change in the last few days. If the equalization movement continues, ETH/USD is expected to remain in consolidation even longer.

 

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 goes up before halving. Will the momentum persist after that?

BTC/USD bulls retained control for the second day in a row as the price moved in an upside price channel. Just 5 days before Bitcoin halving, the bulls took the key resistance $ 9,140- $ 9,200. Now they are heading for their new $ 9,500 target.

Recently, however, the halving of Bitcoin (BTC) has captured the imagination of the crypto industry and predictions are definitely not lacking. These range from a downside spiral in price that will destroy the Bitcoin network to a parabolic appreciation of the main digital coin. How will this event affect the price action?

 

Here are some possible scenarios for Bitcoin halving and the price:

  1. From a negative point of view, some analysts believe that traders who have “bought the rumor” will “sell the news.” This scenario is possible, but difficult to assess, as traders do not usually share their strategies. In my opinion, this scenario should not have a strong impact on price.

  2. Also, negative would be the scenario in which miners will put sales pressure, dragging the price down. But this case is again unlikely. Because Bitcoin halving means that miners will receive half the Bitcoins for the same work. And this doubles the unforgettable cost of creating the first cryptocurrency.

Miners’ costs are effectively fixed. So, to maintain the same profit margins, they should be encouraged to double the price at which they sell their Bitcoins. I expect that this supply shock will raise the price significantly.

  1. And from here we move on to the most positive scenario. In this case, the ratio of stocks to new flows after halving will cause upward price pressure. This scenario relies on the logic that the combination of Black Thursday (March 12) and the upcoming halving of the block award will push out weak and inefficient miners. The remaining miners will have lower costs and be forced to sell less of the newly created blocks to cover them. This dynamic, combined with the macroeconomic tailwinds provided by global governments and rising inflows into passive investment products such as Bitcoin (which we are currently seeing), could trigger a perfect price rally in the medium and long term.

Of course, there is an option for the halving to be already priced in and to have no impact on the market. But to figure out which scenario will play out, we don’t have to wait too long. There is less than a week left until the big day.

 

Technical analysis of BTC/USD

Although the event is fast approaching and retail investors are feeling more and more bullish, I must remind you something. After falling to $ 3750 on March 13, the price of BTC rose by over 145%. So, the current daily chart picture is starting to look overbought.

In addition, looking more closely at the weekly chart, we will notice that $ 9,500 has proven to be a key level of resistance and support. Overcoming this level is expected to be a challenge. But given the proximity of Bitcoin to the price, a strong jump in volume could put it out of the game. In the short term, traders must monitor the volume of trade and for a break above the daily high of $ 9,375.

In addition, the SMA 20 passed over the SMA 200 to chart a bullish cross. MACD shows an increase in upside momentum. But the RSI indicator is already in the overbought area at 79.50. That means that short-term bearish correction may be around the corner.

On the downside, I expect the $ 9,198 and $ 8,535 levels to provide strong support.

 

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 consolidates under $ 40

How has COVID-19 affected Bitcoin?

Today is the beginning of a new month and a new quarter. However, will the markets be able to recover after the first quarter’s severe blow from the Coronavirus?

While global stock markets posted major losses in the quarter, Bitcoin fell just 10.83%. The sharp decline of 24.9% in March actually reversed gains from the beginning of the year. But once it reached its three-month low, Bitcoin was able to advance by 75% in two weeks in a highly volatile period. This was despite the intervention of central banks on a scale never seen before in history.

At current levels, BTC/USD is only $ 700 below its position at the start of 2020 and $ 3,800 below its current annual high of about 10,300. That’s why Bitcoin now looks more and more -sustainable as an investment asset against traditional markets that are still struggling with significant losses as a result of COVID-19.

Statistically, the second quarter in a given year is usually the most profitable for Bitcoin holders. Since 2013, only once Q2 has yielded a negative return, with average gains totaling 65%. Still, the major cryptocurrency would have to break above $ 10,000 to form a new short-term bullish trend. Until then, the short-term bearish trend, formed since June 2019, remains intact.

 

How did the rest of the cryptocurrencies end the quarter?

As for the rest of the crypto market, major altcoins followed Bitcoin and most ended the quarter in the red territory. However, there were also cryptocurrencies that managed to end up on the green. Despite seeing a sell-off for the period, Ethereum gained 3.53% in the first quarter.

However, Ripple’s XRP dropped a total of 9.87%. EOS ended the quarter with a loss of 14.45% and Stellar’s Lumen finished down by 9.36%. Litecoin experienced a 32.58% crash in the highly bearish month of March. Thus, the sale-off wiped out profits from the beginning of the year and Litecoin closed Q1 with a decline of 4.72%.

 

Litecoin will only progress to a greater recovery if it breaks above $ 40

LTC/USD traded slightly up yesterday, rising from $ 38.44 to $ 39.30. Looking at the hourly chart, Litecoin consolidates into a big triangle. Currently, the price is trying to move towards the upper boundary of the triangle as purchase volumes increase. Also upside sign is that the price is trading above the 100-day moving average on the hourly chart.

The key resistance zone is the psychological level 40. If the Litecoin bulls manage to break through it, this should confirm the further upside momentum to the next targets at $ 43.45 and $ 45.

The bullish price action is also supported by RSI after recovering from its low levels on a daily chart. And while the RSI is targeting level 45, the $ 50 resistance is likely to be a springboard for the next rally to $ 60.

Meanwhile, the closest support is $ 37, followed by $ 34.50, $ 28 and $ 26.

 

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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XRP faces huge resistance against USD

The cryptocurrency market is dominated by the Altcoins this week. Most major coins are traded in a green zone with Bitcoin SV and Etherum Classic among the growth leaders. The market capitalization of cryptocurrencies increased slightly to $ 241.84 billion, while the average daily trading volume declined to $ 88.64 billion. Bitcoin’s market dominance was 66%.

Ethereum (+1.52%), Monero’s XMR (+1.84%), Ripple’s XRP (+1.47%) also found strong support from the bulls yesterday. Bitcoin Cash ABC (+0.73%), EOS (+0.96%), Litecoin (+0.65%) and Stellar’s Lumen (+0.32%) remain on the tail.

This morning, however, the massive movements we experienced on the crypto market last week not only subsided but also turned into downward corrections. Therefore, the price of Ripple is trading 0.37% lower on Wednesday. The Asian session faced sales pressure, and the European session started amid the same bearish activity.

 

The technical picture of the XRP of Ripple

On a daily chart, we can see how the XRP/USD showed a rebound above the $ 0.18 support, the bottom since mid-December. The pair rallied 0.35% in January and hit a new high of $ 0.2540 this weekend.

As the chart shows, this resistance can be seen as a decisive breakthrough area. The price of the XRP is holding above the $ 0.25-0.28 area as support in 2018 and 2019, making it a hard hurdle to take. Additionally, adjusting above the $ 0.24 key level may also take longer. The 100-day SMA is located there.

If these important levels of resistance do not manage to be overcome, the bulls are likely to become discouraged, losing balance and we may see a further fall in the price to $ 0.22.

XRP against USD

From a broader technical perspective, Ripple is still in the upside price channel since January. The lower boundary of the channel remains crucial in support of the short-term trend. I expect a rebound back up if 0.2310 support is tested again. This area is also strengthened by 50 SMA on the hourly chart at 0.2350 at the moment.

On the other hand, channel resistance ($ 0.2650) must be overcome to allow XRP to extend its rally to $ 0.30. A clear break above that level could lead the XRP to test the longer-term bullish target at $ 0.48.

The MACD on the hourly chart is slowly losing momentum in the bullish area. At the same time, the RSI indicator struggles to stay above the 60 levels of the same chart.

 

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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