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Bear Grip Strengthens
BTC: Price: $9,500 | MCAP: $168 billion | 24-Hr Volume: $27.13 billion
Short-term trend: Bearish
Bitcoin faced multiple rejections at $10,000 earlier today, reinforcing the short-term bearish view put forward by Tuesday's UTC close below the July 2 low of $9,614.
The Chaikin money flow (CMF) index on the daily chart is now barely holding in positive territory, as opposed to highs above 0.36 seen at the end of June. The CMF's decline indicates buying pressure exhaustion.
Meanwhile, the 14-day relative strength index is reporting bearish conditions with a below-50 print. What's more, the 5- and 10-day moving averages (MAs) are trending south and the 5- and 50-day MAs have produced a bearish crossover.
With the odds stacked in favor of the bears, BTC risks falling back to the former resistance-turned-support of $9,097 (May 30 high). A UTC close below that level would expose the 100-day MA, currently lined up near $8,100.
The bearish outlook would be invalidated if prices break above $11,080 on the back of high volumes, invalidating the bearish lower highs pattern seen on the 4-hour chart.
A high-volume weekly close above $12,000 is needed to revive the bullish view.
Long-term trend: Bullish
Bitcoin closed last month with 25.89 percent gains, confirming a five-month winning streak, which is the longest since 2017.
With the double-digit gains, the cryptocurrency further cemented the falling channel breakout witnessed in April. The 5- and 10-month moving averages are trending north, indicating a bullish setup. As a result, the path of least resistance is to the higher side, more so, as the cryptocurrency is set to undergo mining reward halving sometime in May 2020.
Hence, investors may view any pullback to levels near $8,000, as just another chance to get involved in the bull market.
The outlook will remain bullish as long as prices are held above the 200-day moving average, currently lined up just below $6,000.
Read Analysis
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NANO Falls Short NANO: Price: $1.14 | MCAP: $146.9 million | 24-Hr Volume: $16.2 million
Short-term trend: Consolidation
After trending southward for a 4-day period, NANO finally broke its bearish streak on the back of consistent supporting volume illustrating its first attempt to surpass resistances marked along the 26 and 55 period exponential moving averages (EMA).
Despite being up more than 20 percent on the day and having been denied on its primary push, NANO now looks to a period of congestion before attempting a higher high close and will need to maintain momentum in order to shrug off July 17's bearish topside wick.
Long-term trend: Pullback from breakdown
The Chaikin Money Flow resides firmly below the neutral 0 line demonstrating greater selling pressure with a slight tick up illustrating yesterday's move. If it can maintain its current course then a buy signal will be generated sometime next week.
However a failure to scale the aforementioned EMA's shows clear bearish trend developing and the bulls will need a lot more momentum going forward if they are to break beyond $1.25.  |
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Metaverse ETP Stepping Down ETP: Price: $1.26 | MCAP: $90.7 million | 24-Hr Volume: $18.5 million
Short-term trend: Potential bounce
A Fibonacci retracement, drawn from the bottom of April 25's candle to the top of June 19, shows a clear correction toward one of crypto's favorite Fibonacci levels at 61.8 percent.
Down 9.38 percent on the day, ETP its also one of today's worst performing top 100 crypto at CoinMarketCap and has extended its losses into the 6th day. There is a confluence of support at around $1.17-$1.18, courtesy of the 100-day moving average (MA) and the aforementioned 61.8 percent should it hold.
The daily RSI is fast approaching oversold and may support the possibility for a short-term bounce back to test 50 percent at around $1.39 in the coming week.
Long-term trend: Cautiously bullish
Until a firm close below 61.8 percent should occur, then the trend can still be considered correcting from an over exuberant market based on Facebook/Libra announcement and then cooling off felt across the crypto board, however, ETP remains cautiously bullish above $1.15.  |
William Mougayar, author of The Business Blockchain, believes the value of major cryptocurrencies like bitcoin and ethereum will skyrocket if regulators from across the globe succeed in halting Facebook's cryptocurrecy Libra.
Mougayar may be right here as regulators, by stalling Facebook's project, may end up strengthening the narrative that bitcoin and other cryptocurrencies based on distributed, decentralized, public ledger cannot be stopped or regulated.
Bitcoin's anti-establishment appeal would further strengthen, possibly leading to record price rally.
That said, the initial rejection could be negative. After all, bitcoin's price had rallied sharply from $9,000 to $13,800 following Facebook's unveiling of Libra's white paper on June 18.
In fact, BTC's price has already come under pressure over the last few days amid growing calls for scrutiny of Facebook's project.
Facebook’s plan came under attack at a U.S. hearing on Tuesday, with senators calling the company delusional and untrustworthy and questioning the social media giant on how it was planning to prevent money laundering. Also, a week ago, President Donald Trump called for banking regulation on bitcoin and Facebook’s Libra.
As a result, the top cryptocurrency fell to a one-month low of $9,049 on Bitstamp yesterday. The decline could be extended further to $7,500 on regulatory fears. Why $7,500?
BTC picked up a strong bid near $7,500 a week before Facebook's launch of Libra. Essentially, BTC priced in the goods news in advance by rallying from $7,500 to $9,400 and extended the gains further after the social media giant's project garnered rave reviews.
As a result, the cryptocurrency could fall all the way back to $7,500 on regulatory fears.
Also, if BTC follows a past pattern, then prices could drop to the three-day chart 200-candle MA, currently located below $7,500 before resuming the bull run.
Read full article: The Case $7.5K Could Become Bitcoin’s New Price Support |
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| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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Bear Reversal