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Geopolitics set the tone for the crypto market in the first days of 2020

Iran’s war boosts crypto market demand during the first week of the New Year

The new year starts with the improvement of the mood in the crypto sphere. The war between the United States and Iran affects all countries around the world. Some people worry that this could trigger World War III. On the other hand, the US stock market remains volatile amid fears that Iran’s retaliate could cause chaos.

The cryptocurrency market seems to be taking advantage of the US-Iran situation to gain momentum. Mostly Bitcoin presents itself as a safe haven for investors. Especially, since it is decentralized and can function without the censorship of any government. The rest of the cryptocurrency market responds accordingly in tandem with Bitcoin and the bullish momentum is likely to continue.

 

Bitcoin renews hopes for 2020

The main digital asset has jumped by 5.52% in the last 24 hours. Accordingly, Altcoins also show strength. Chainlink (LINK) gained 15.70% growth and Litecoin (LTC) 5.83%.

The total market capitalization of cryptocurrencies is now at $ 217.7 billion and Bitcoin’s dominance rate has risen to 69.1%.

Technically, Bitcoin would have to stay above $ 8,300 to see the first resistance test at $ 8,516.3/600.

We can expect the news to have a significant impact on the day, with volatility likely to come from events in the Middle East. I believe that Bitcoin could break through the second major level of resistance if the USA responds to Iran’s attacks against military bases in Iraq. But that region of $ 8,877- $ 9,000 would probably limit the bullish momentum in the event of a prolonged daytime rally.

If the price fails to hold above the first resistance, the main digital coin may recede.

 

Litecoin with a rally of 5.83% on Monday

LTC/USD is moving in a short bullish channel with the upper limit created by the upper line of the 4-hour Bollinger Bands at $ 48.00. Support was created by SMA 50 on the daily chart and the mid-line of the 4-hour Bollinger Bands around $ 44.00. A convincing breakthrough and movement in either direction should create strong momentum. This should allow further price action to develop in the direction.

Technically, we had a bullish crossover of moving averages on the 4-hour chart. As the SMA 50 breaks above the SMA 200, this indicates a continuation of the upward movement. On the upside, $ 50 could be the next target for the bulls. A clear breakout above this psychological level will open the doors to the $ 50.70 resistance. There is located the 100-Day SMA. LTC/USD has been trading below this SMA since mid-July 2019, which means that bulls may have a hard time taking it out.

On the other hand, a sustainable decline below $ 44 will turn short-term prospects to downward and will put $ 40 back in focus. This support was followed by the low for 2020 at $ 38.74 and the bottom line of the daily Bollinger Bands – $ 37.60.

 

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 went up above $ 60

Bitcoin settled above $ 9,300

The crypto currency market has a mixed picture on Wednesday as Bitcoin and all major altcoins fluctuate in narrow ranges during the early Asian hours. Total market capitalization reached $ 251 billion. The average daily trading volume was $ 89 billion. And Bitcoin’s market share reached 66.8%.

BTC/USD hit a weekly high at $ 9,621.8 on November 4 and has been retreating ever since. At the time of my writing, the main digital coin is trading for $ 9,425, down 1.02% on a daily basis. The SMA 100 on the daily chart is located around $ 9,606 and seems to be limiting the recovery. It needs a clear break above it and a weekly high to allow the bulls to gain likely traction for the next goal at $ 10,000.

 

LTC sees optimism return, with the potential to rise again to three-digit prices

Currently, Litecoin is far from its peak value, reaching above $ 360 during the bull market of 2017 and early 2018. However, LTC has the potential for more significant profits, as the coin is considered as undervalued.

The crypto currency is seen as a relatively insignificant asset, although it has established stable liquidity. This makes Litecoin relatively attractive and has the potential for rallying, especially in times of BTC stability. LTC is one of the coins in which active and rapid price movement is associated with an increase in price action.

The coin has also recently saw a spike in daily transactions, to over 67,000 transactions a day, above the average of 18,000 a typical day. Litecoin has also shown its ability to rise in price amid pure speculation. More than 46% of all LTC volumes receive inflows from Tether (USDT), allowing the price to move independently. Also, keep in mind that LTC is still one of the assets that almost doubled its value in 2019, though still behind BTC’s performance.

 

Technical analysis of Litecoin

Litecoin is currently trading at $ 63.58, with increase of 3.75% over the last 24 hours. Yesterday, LTC extended its bullish move to the high at $ 64.02, but failed to keep above that level. That is why this peak is now acting as a short-term resistance.

If we look at the four-hour chart, Litecoin’s struggle to defend the $ 60 support is at its peak. In addition, the price moves within a formed rising triangle pattern. The first scenario is for Litecoin to break above the resistance of the triangle ($ 64) and open the door to $ 70. On the other hand, if the coin fails to clear the $ 64 hurdle combined with a correction below the trendline support, Litecoin can easily approach to $ 50.

In hindsight, a drop to $ 50 would not have a completely negative impact. It is likely that a new LTC demand will be created in the area and the basis for a potential rally towards $ 100 at the end of the year.

The Relative Strength Index (RSI) shows that the price is oversold in the short term (H4) and the reversal is at the beginning. Bulls hold relative control according to the Moving Average Divergence Convergence (MACD).

 

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.

Read More

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, 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 to keep the positive momentum to the first major resistance level at $ 60.

The Relative Strength Index (RSI) 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 testing $ 53 support 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.

Read More
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