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Pre-Christmas sales surge for BTC, ETH and XRP

Pre-Christmas slaughter and sales continue to wreak havoc on the cryptocurrency market at a time when investors are expecting significant upturns. For the last few years, cryptocurrencies have begun to search for “bottoms” in November and use the momentum generated in December to rebound to higher levels.

This month, however, the entire crypto market is bloody, driven by the main cryptocurrency. Bitcoin led the market in another round of downturns, testing support at $ 6,500. Ethereum plunged below $ 130 to test the decisive $ 120 support. Ripple is attempting to make a reversal after falling to a 2-year low at $ 0.1790.

In the last 24 hours, the entire cryptocurrency market is saying goodbye to $ 10 billion, wiped off. And the market capitalization is $ 177 billion, compared to from 187 billion a day earlier. On the other hand, the volume of trade increased significantly from $ 69 to $ 82 billion, reflecting the extreme activity of sales.

 

Bitcoin technical analysis

Despite sales and declines, the market price of BTC in December 2019 is still over 100% higher than the bottom reached in December 2018. The ratio of BTC is still upward in the long run.

But now the asset is in the phase of highly active speculative trading. The Bitcoin Index of Fear and Greed still indicates exceptional levels of fear at 24 points. In the short term, bearish attitudes seem to prevail. So, I expect the decline to likely continue as long as the RSI indicator remains within the oversold area. In addition, the price moves below the 50-, 100- and 200-day SMAs.

While 50 SMA remains below 100 SMA on the 4-hour chart, the chances of recovery may take some time. Therefore, Bitcoin will be at risk of possible further losses. The bears’ next goal is to support $ 6,400, followed by a psychological level of $ 6,000.

In order to regain control, the bulls will have to break the resistance provided by the downtrend line on the daily chart, which is in the region of the important resistance and the round number $ 7,000.

 

Where is the next support for Ethereum?

The downside movement approached the next support at $ 120, though it then adjusted slightly upside. Obviously, it is still possible to see a further decline due to the oversold value of RSI. A clear break below 120 will direct the bears to the next important support at $ 116.00 – 115.85. A persuaclearsive breakthrough (in case of increased sales throughout the market) below this area will bring the $ 112.60 level to focus.

The second-largest cryptocurrency should enter an uptrend if it manages to recover above the two key resistances at $ 130 and $ 140. Only then will the risk of testing the psychological $ 100 level will be completely prevented.

 

XRP/USD hit a 52-week low

The XRP is currently trading above $ 0.018 after falling below $ 0.20 for the first time since October 2017. Ripple is definitely an example of the worst performing digital assets in 2019. On a daily chart, RSI has changed its slump from the oversold zone and trying to have an uptrend. If the indicator continues, XRP may recover its lost position above $ 0.20 in next sessions.

On the other hand, we do not have too many levels of support here as XRP/USD reaches its lowest level since September 25, 2017. The $ 0.1500/1485 area was the main support when the price was so low the last time in 2017. In case of a convincing break below it, we can expect a test of $ 0.1350.

 

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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Ethereum (ETH) Gaining Momentum, the $ 200 level seems inevitable

The major crypto currencies retreat

The cryptocurrency market on Wednesday is characterized by both red and green signals. Leading the retracement are the three major crypto currencies Bitcoin, Ethereum and Ripple.

Bitcoin stepped back, shifting the focus back to $ 9,000 after failing to break the $ 9,500 resistance yesterday.

Ethereum, on the other hand, first fell against the background of shrinking volatility. The price was struggling to keep above the $ 190 support, but the bears found a way to lower the price to $ 187 (current market value).

 

China encourages blockchain embracement

Earlier this week, the overall capitalization of the crypto market peaked at $ 257.76 billion on Monday. However, on Tuesday, the market capitalization of crypto currencies dropped again to below $ 250 billion before finding support. At the time of writing, total market capitalization is $ 251.85 billion.

While Bitcoin dominance has maintained steady levels of 67% since Monday’s pullback, trading volumes fell back to sub-$ 100 billion levels.

On the news front, reports from China that EOS and Tron coming out as top-ranked blockchain projects delivered strong support. The Ministry of Industry has published a chart that has garnered more attention than usual. Interest emerged following the recent support for blockchain technology by Chinese President Xi Jinping.

Other notable representatives in China’s top 10 blockchain include Ethereum ranked 3rd and Stellar’s Lumen ranked 10th. Bitcoin came in at number 11.

 

Ethereum continues trending in an upward channel against the dollar

Ethereum formed a double bottom in the support area of ​​$ 150-163, within the formation of a falling wedge. This double bottom model led to a strong jump in volumes, after which the price bounce and continued to fluctuate around $ 185.

Currently, the ETH/USD daily chart is moving in an upside price channel. This Wednesday, the price is trading near the high of $ 191 and will have to break the resistance at $ 193 to continue the positive momentum. This is a crucial area, as we see in the history of the chart. During the first part of 2019, the $ 185-190 area remained strong resistance before the breakthrough in May.

In the case of a broad-based crypto market rebound, Ethereum can test the second major resistance level at $ 203. The MACD indicator shows an increase in the upward momentum.

In the coming weeks and months, it will be crucial to see some continuation to the upside for more confirmation. However, it’s unlikely to expect a drop below the $ 155 area after the last rebound upwards.

Because Ether (ETH) is the largest altcoin, its chart shows a model identical to the movements in the overall market capitalization of the Altcoins. Therefore, note that Ethereum can also be described as a leading indicator of future movements of the Altcoins.

 

 

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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Can Low US Interest Rates Affect Bitcoin?

Today, I would like to address a hot topic, with a view to approaching the announcement of the Fed’s monetary policy decision. But first, let’s look what happens to Bitcoin and the crypto market as a whole.

 

Crypto Market Overview

Bitcoin remains directionless, with many mixed indicators that do not provide a clear scenario for the price action. Altcoins show short-term rally behavior, though it is too early to judge whether price growth will be sustainable.

BTC’s failure to break the $ 10,400 resistance actually made the bulls powerless. So now the control seems to be in the hands of the sellers. However, the price has miraculously sustained above the vital level of $ 10,000.

Over the past 24 hours, Bitcoin has recorded an exchange trading volume of $ 15 billion, according to CoinMarketCap’s data. Its market capitalization is $ 184 billion at the time of my writing. This represents 67.9% market dominance, a significant drop from the peaks above 71% observed a week ago.

 

Can Low US Interest Rates Affect Bitcoin?

And let’s get to the point… President Trump has repeatedly called for more significant economic stimulus. And the US Federal Reserve has cut interest rates this year from 2.5% to 2.25%. But the US dollar is still on the rise against the euro, and the eurozone is already implementing a policy of negative interest rates.

Now you might ask – what does this have to do with the crypto market? A high dollar exchange rate can hurt US exports while encouraging other economies to produce and export their more competitive goods. But a weakening dollar can drive some of the money into crypto currencies.

US-based investors were one of the main drivers of the Bitcoin (BTC) market during peak trading in 2017. But the hysteria soon dissipated, leaving investors much more cautious. Now, most of the price action for BTC is concentrated on exchanges that manage to attract Chinese traders.

The assumption that interest rates can contribute to the success of BTC has already been made in the market and BTC supporters may become enthused if the Fed responds with a series of interest cuts.

 

Bitcoin technical analysis

On the four-hour chart, the price of BTC/USD shows that it is caught in a tight range between 10 578.4 and 9 901.3.

This is obviously untypical for Bitcoin, which is usually quite volatile. Even worse, in the last 6 trading days, the trade remained in the range of less than $ 300.

On the upside, we need a clear break above the top of the range at 10 578 to see testing of $ 11,000. However, if buyers are unable to protect the 10,000 level, Bitcoin is likely to dip to the next important support around ​​$ 9,000. This area has already been multiple proven to be a strong level of support over the past few months and has continued to push for buying pressure.

 

Ethereum outrun Bitcoin

And while BTC is trading without direction, the recent behavior of ETH is seen as a potential signal for the upcoming Altcoins rally. However, the altcoins remain highly volatile.

Ethereum’s price is trading above the 50-day SMA on the 4-hour chart, which is currently located at $ 186.60. At the same time, the 100-day SMA is around $ 181. The gap between the two moving averages on the 4H chart continues to increase, which can be interpreted as a signal to improve the bullish picture. Ethereum buyers are looking forward to raising the price over $ 220. A clear break above that level should open the way for a correction towards $ 240 and $ 300 resistance targets.

 

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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Did the bulls on Ethereum died?

Analysis of Bitcoin, Ethereum and Ripple weekly losses

Last week, it was like a trail of horror for the crypto market, which ended with a downward spiral on Tuesday. Let’s take a look at the top three coins in the last week.

Tuesday was a heavily bearish day for BTC/USD, with the price dropping from $ 11,020 to $ 9,370. BTC/USD recovered slightly earlier today and traded around $ 9,520. So, the main crypto currency registered a decline of 25.92% within the last seven days. Some analysts believe that the current pressure on Bitcoin is a technical factor driven by sellers taking control of the market after the dominant crypto coin dropped below the key support levels of $ 11,000 and $ 10,700. Whatever is the reason, the bears on BTC/USD marked their strongest week since March 2018.

ETH/USD fell from $ 234.50 to $ 192.71, losing a staggering 35% of its value. ETH/USD is on course to finish its worst week since September 2018. XRP/USD, on the other hand, is on course to mark its fourth downside week in a row. XRP/USD fell from $ 0.32 to $ 0.2864. In the last four weeks, XRP/USD dropped from $ 0.4962 to $ 0.2864, losing about 40% of its estimate.

 

What are the reasons for this fall?

In my opinion, the latest fundamental news from the United States is at the root of this collapse. On the one hand, the criticism of Bitcoin by US President Trump and Treasury Secretary Mnuchin may have contributed to the fall. In addition, US lawmakers “grilled” Facebook because of the company’s plans for its own crypto currency. And this shows that political and regulatory control over digital coins is intensifying.

The social media giant is struggling to attract Washington on his side after it shocked regulators and lawmakers with its announcement on June 18 that it was hoping to release his own coin called Libra in 2020.

David Marcus, CEO of Calibra, will speak to the Congress on July 16-17. With that in mind, I think it is likely that the crypto currencies will continue to decline. Now, the question is about the future attitude of the authorities towards to the crypto market as a whole. Ultimately, if such a bill to ban the release of digital currencies become a law, it should put a heavy pressure on Bitcoin and the whole altcoins market.

 

Ethereum Price Analysis

The technical analysis shows that the price of Ethereum is currently highly underestimated, so any upside correction may be on the horizon.

On the daily chart, ETH/USD broke below the bottom line of the 20-day Bollinger band, indicating that it is undervalued. At the same time, the widening of the channel, or so-called Bollinger jaw, indicates growing market volatility.

Meanwhile, it looks like the 50-day SMA is looking to cross the 20-day SMA on the daily chart, which is a bearish signal. And the signal line is diverging away even more from the convergence/divergence line of the MACD indicator, showing increasing bearish momentum. The Relative Strength Index (RSI), however, enters 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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