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Does sales pressure mean a new downtrend for BTC/USD

Cryptocurrencies have come under fresh pressure

Bitcoin price struggled to hold over $ 8,000 during Wednesday’s Asian session. However, the bearish pressure, coupled with the increasing sales volume, outweighs the bulls. The entire cryptocurrency market is in the red territory, with most of the major coins registering losses at the beginning of the European session also.

Almost all of the top 20 coins show red candles on the charts. And Bitcoin SV (BSV) took the prize for the worst performing cryptocurrency of the day with a loss of 4.5%. Cosmos (ATOM) and Tezos (XTZ) followed closely, with losses of more than 3% each.

The total market capitalization of cryptocurrencies dropped from $ 223.3 billion to $ 218.5 billion, with Bitcoin representing 66.3% of the total.

As for the fundamental news, Opera has announced that it now facilitate making payments with Bitcoin (BTC) directly inside the web browser. Opera detailed in a press release that its 350 million users can now send and receive BTC directly from the browser, as well as use the cryptocurrency to buy goods and services on e-commerce websites.

 

The bears pushed BTC/USD under $ 8,000

Over the past few weeks, Bitcoin has gone through a series of up and down movements. Now the level we need to keep a close eye on is the key support at $ 7,800. This region has been tested repeatedly without giving in. In addition, a rebound from this area resulted in significant movements above $ 8,000. For example, the most recent correction pulled the price over $ 8,300 before hitting $ 8,750.

On the upside $ 8,800 is the most significant resistance. The movement above that level has been unsuccessful in the last month. If BTC/USD manages to break through this resistance, the chances of raising above $ 9,000 will be huge.

From a longer-term perspective, BTC/USD has been moving within a narrowing range over the past 4 weeks, following the strong downside trend that played out between June and September. Technically, the price has formed a bearish flag on the daily chart. This makes the BTC/USD pair vulnerable to further potential downturns if current daily support recedes. A clear break below $ 7,800 can easily push Bitcoin to $ 6,400 (key support for the downtrend in 2018). Failure to hold above this level could open the door for a new wave of sell-offs to the next critical support at $ 5,000.

All indicators, including the Relative Strength Index (RSI), indicate that the trend is in the hands of the bears. The RSI plunged close to the oversold area while the Moving Average Convergence Divergence (MACD) is below the zero line.

 

 

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 remains range-bound against USD

The overall picture of the crypto market over the last 24 hours

Bitcoin has slid by 1.55% in the last 24 hours. Reversing a 0.78% gain from Monday, Bitcoin closed the day at $ 8,159.9.

As for the other top 10 crypto currencies, the picture on Tuesday was mixed. Binance Coin and Bitcoin Cash SV were on the green territory for the day, rising by 0.49% and by 2.30% respectively.

For the rest major crypto currencies, however, trading was a deep red. EOS led down by a loss of 6.34%.

Litecoin, Bitcoin Cash ABC and Ethereum also saw heavy losses during the day. Litecoin slipped 4.08%, with Ethereum and Bitcoin Cash ABC falling by 3.36% and 3.21% respectively. Ripple’s XRP and Stellar’s Lumen recorded more modest losses during the day.

During the first part of the week, total crypto market capitalization rose from a Monday bottom $ 223.92 billion to peak at $ 228.17 billion before reversing. Against the background of Tuesday’s sell-off, we saw the crypto market capitalization drop to the current low of $ 221.83 billion. At the time of my writing, total market capitalization was $ 222.65 billion.

Bitcoin dominance remains at levels below 67%, despite Tuesday’s sell-off.

Litecoin, on the other hand, celebrated its eighth anniversary on October 13, making the coin only 2 years younger than BTC. According to the project’s creator, the network has processed transactions worth more than $ 500 billion since its inception.

Despite attacks this year, Litecoin survives and remains one of the most liquid altcoins.

 

Daily analysis for Litecoin

After the bearish Tuesday, the bulls took control on the market. LTC/USD fell from $ 57.34 to $ 53.53 yesterday and has since recovered to around $ 55.30. The sixth largest digital asset with a current market value of $ 3.6 billion bottomed at $ 50.58 on September 26 and has been moving in a narrow range ever since.

For the day ahead, we have accumulated strong levels of resistance above the current price. This area includes the upper line of Bollinger Bands on the daily chart ($ 58.50); the long-term downside trendline, from June 23 high at $ 59.60 and of course the upper limit of the aforementioned range at the psychological level $ 60.

The bulls will need convincing movement over that area to allow upside momentum to gain traction.

On the downside, the first support is yesterday’s low at $ 53.53, followed by a bottom of October 6th at $ 53.06. A clear break below these levels is likely to lead to sales extending, with the next bearish targets set at $ 50.58 (September 26 low) and the psychological level at $ 50.00.

Litecoin is currently moving below the curves of SMA 20, SMA 50 and SMA 200. And the 20-day Bollinger width has dropped to 0.092, indicating very low market volatility. The Relative Strength Index (RSI) is located at 39.77, right next to the oversold area.

 

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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Tuesday showed a bloody bath for crypto currencies

The crypto currency market crashes massively a day after Bakkt Bitcoin Futures trading debut

Bitcoin dropped more than 13% on Wednesday in the Asian session and fell below $ 9,000 for the first time since mid-June. The crypto currency dropped more than 20% to $ 8,110.1 in the previous session. This is the largest intraday decline since January 2018.

The rest of the market, including the major Altcoins, followed Bitcoin with its own measure of the downfall. Bitcoin Cash ABC (-25%), Bitcoin Cash SV (-22.84%) and EOS (-25.09%) saw the biggest losses of the day. Ripple’s XRP (-12.85%) saw the most modest loss of the day.

The lackluster start of long-awaited Bitcoin futures and the general mood to avoid risk were cited as possible catalyst for the meltdown. Weakening investor sentiment and declining equity markets are also putting pressure on Bitcoin. Wall Street closed lower at night. And Asian stock markets traded mostly in the red today amid political concerns in the US and intensifying US-China trade disputes.

The disaster came just a day after Bitcoin Futures, which are physically settled, launched on the ICE-backed Bakkt exchange. But the new futures contract had a drab start. However, the daily volume is expected to increase over time as institutional investors are still accustomed to the new trading service.

 

The LTC/USD bulls are trying to re-enter the area at $ 60

Litecoin crashed 16.5% on Tuesday. Following Monday’s 8% drop, Litecoin closed the day at $ 55.22. Following the broader crypto currencies market, Litecoin jumped from its low $ 55.22 earlier this morning and peaked at $ 57.66.

For the day ahead, Litecoin will have to break above the lower limit of Bolinger Bands at $ 59. This is needed in order to keep the positive momentum to the first major resistance at $ 60.

The Relative Strength Index of the daily chart is trying to get out of the oversold zone. This means that the digital asset has been extremely sold out and the reversal is imminent. But it may take some time for it to materialize. Litecoin will need support from the wider market to break the $ 60 level.

In addition, the MACD indicator is deep in the negative area. The negative divergence on the H4 chart emphasizes the presence of sales pressure. At the same time, the correction of the 50-day SMA to the 100-day SMA at $ 71.99 suggests that downside consolidation will dominate before we can see a significant reversal.

Failure to move through to $ 59 level, could see Litecoin take another tumble. A clear break below the morning low $ 55.22 would bring a further decline for test $ 53 before a possible recovery.

 

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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