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Bitcoin remains steady until oil and stocks collapse

The fall in oil prices is now affecting the stock market, which makes crypto investors worried about the future of Bitcoin price. The cryptocurrency market is now in a lull after the retreat from last week’s highs. Most cryptocurrencies barely manage to stay in green territory, especially the first three: Bitcoin, Ethereum and Ripple.

Total market capitalization dropped to $ 198 billion. The decline clearly shows that sales pressure has been significant for the last 48 hours, especially for Bitcoin. The main digital coin fell from the high $ 7,300 to the bottom at $ 6,767. Total trading volume also dropped from $ 186 billion to $ 114 billion (reported in the last 24 hours).

 

BTC/USD stays stable at $ 6,900 when oil and stocks collapse

The US oil market has suffered the biggest blow in its history after prices falling to negative territory on Monday. The downturn also had an effect on the stock market. And this is a situation that is worrying for Bitcoin and other crypto enthusiasts because of the recently found correlation between the price of BTC and stocks movements. Yet, amidst the chaos in traditional markets, the price of Bitcoin has remained relatively stable.

As for the technical picture, a positive development is the pattern of higher lows and the increasing volume of purchases of the 4-hour chart. If Bitcoin manages to stay above the $ 6,900 level, then the price may go above the average line of Bollinger Bands near $ 7,000. However, a clear breakthrough and a daily close above $ 7,300 (April 18 peak) will be needed, so the bulls can clear the way to the $ 8,000 price level.

If the $ 6,900 level fails to affirm as support, then Bitcoin bears can take control of the price. A clear break below the bottom of this morning at $ 6,826.2 will bring BTC to retest at $ 6,767.

 

Tezos runs crypto recovery, but for how long?

Any discussion of the current price action of the cryptocurrency market should also include some references for Chainlink (LINK) and Tezos (XTZ) presentation.

Both coins have had some of the most volatile and massive flows in the last twelve months. After the Black Thursday collapse on March 12, Chainlink jumped 156% and Tezos made a recovery of 152%. In the last 24 hours, Tezos has also managed to grow the most among the top 15 cryptocurrencies.

 

The question now is, will XTZ be able to lead the other Altcoins upside?

On the 4-hour chart, XTZ/USD has been moving in the upside price channel since March 13. It seems that the $ 2.00 psychological level is proving to be a tough nut for the bears and the price has risen again. The 55-day SMA is also located in that area, where Tezos found support in the latest downturn.

Looking at the technical indicators, the RSI went back above the midline 50 with bullish momentum. But at the moment, the upside channel with an upper border at $ 2,532 and a bottom line localized at $ 1,991 is the key. A clear break in either direction can give us clues about the future price action of the pair. Falling below the channel could take the bears to test $ 1,834 (low of April 16). On the other hand, a break above the upper limit can push the bulls towards the important resistance of $ 3.

 

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 led the market again

Litecoin is the best performing crypto currency of the day

The crypto currency market had a mixed picture during the Asian session today. Although the bearish sentiment seems to remain dominant as Bitcoin and most of the major Altcoins are in a red zone.

Capitalization of the crypto market remained at $ 253 billion, almost unchanged from $ 254 billion on Tuesday. The average daily volume of trade fell to $ 58 billion amid growing volatility on the market.

BTC/USD is trying to recover over $ 8,000, although the breakthrough needs to be confirmed. At the time of my writing, BTC/USD is traded around $ 7930 against a backdrop of rising volatility. LTC/USD took advantage of Bitcoin jumps to $ 8100 and set its course while breaking key barriers.

Litecoin (LTC) is still the biggest winner of the day. The fifth largest coin with the current market capitalization of $ 8.5 billion rose by more than 7% in the last 24 hours to trade at a price of $ 139.27.

Litecoin opposes gravity ahead of halving

Fundamentally, the sustainable growth of Litecoin is driven by upcoming halving. This event will reduce the reward of miners, which they will receive in exchange for maintaining network operability.

Project Leader and Creator Charley Lee has published some statistics to show the community that mining will continue to be profitable even after halting.

Meanwhile, the technical picture is positive and will probably remain the same if something drastic does not happen. The RSI indicator moves around $ 72.00 to indicate that the price path of least resistance is upside. This trend is also accentuated by MACD, which sits comfortably above the average line just at +2.5638.

For the upcoming day, a break above $ 141 would support the upward momentum. Keep in mind, however, that if failure to break this resistance, LTC/USD may return some of the morning’s gains. It is quite possible to see a slight downside correction because the pair is already in overbought territory.

Litecoin will need constant support from the broader market to reach levels around $ 145. Barring an expanded crypto rally, the first major resistance is likely to limit the potential upside momentum for the day.

On downside, immediate support is created by merging the SMA 50 and SMA 100 on 4-hour chart in the area of ​​$ 114.85 – 114.00. Once broken, the likelihood of a decrease will increase. And the next goal of the bears will be the $ 110.00 zone.

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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