Bitcoin's Dominance Grows

Altcoins tanked as Bitcoin rallied in the first half of the week

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July 10, 2019 Welcome to the weekly edition of the CoinDesk Markets newsletter! Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter  or our private room on StockTwits, the CoinDesk Dojo.  "Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse. Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!   Bitcoin Bull Market Intact BTC/USD: Price: $11,700 | MCAP: $208 billion | Maximum Gain: +5% Why we were intrigued: Bitcoin had begun the week on a positive note by invalidating the bearish lower highs pattern with a move above $12,061 (Bitstamp prices). More importantly, the breakout was reinforced by a successful defense of the former resistance-turned-support of $12,061 during the European trading hours on Tuesday. It is worth noting the markets typically revisit the new found support before capitalizing on breakout. This is done to test the confidence in the rally (dip demand) and to shake out weak bulls (traders with limited risk appetite or “HODLing” power).  If the support is defended, then the breakout gains credence. In BTC’s case, the price not only bounced up from $12,061, but went a step further and quickly rose through the descending trendline on the 15-minute chart.  That was a strong signal of an impending bullish move toward $13,000. In any case, Monday’s close had opened the doors to retest of the June 26 high of $13,660.  As expected, prices rose to $13,000 in the Asian trading hours on Wednesday and extended gains further to $13,200 in the U.S. session before falling all the way back to $10,966 yesterday. Notably, the cryptocurrency charted a bearish outside day candle on Wednesday and closed well below that candle’s low of $11,550 on Thursday, confirming a bearish reversal candlestick pattern.  Even so, the outlook remains bullish as the bullish higher lows pattern on the daily chart is still valid. That would be invalidated only if prices close below the July 2 low of $9,615.  Further, the cryptocurrency has bounced up today from the support of the three-day chart 10-candle moving average, which has consistently reversed pullbacks throughout the rally from $3,500 to $13,880.    The Trade   The Result   Tezos Fakes a Bull Move XTZ/USD: Price: $1.04 | MCAP: $0.69 billion | Maximum Loss: -14% Why we were intrigued: Tezos (XTZ), ranked 23 as per market cap on CoinMarketCap, was trading well above $1.2 on July 4 with the daily chart reporting a falling channel breakout.  An upside break of the falling channel essentially represents a transition from the bearish lower highs, lower lows to bullish higher highs, higher lows and is considered a bullish reversal pattern.  Note, that the breakout was confirmed on July 3 and was reinforced on July 4 with a solid defense of the breakout price.  Further, the breakout was backed by the largest buying volume since March 21. All-in-all, XTZ/USD looked set for a move higher. Our analysts called a bullish move on July 4, citing target of $1.6-$1.8 with stops below $1.00.  The cryptocurrency rose to $1.32 over the weekend and remained flatlined till Thursday before falling to $1.004 yesterday. As of writing, XTZ is changing hands at $1.0477 on kraken exchange.  The bullish forecast failed as altcoins in general took a beating amid bitcoin’s price rally. The top cryptocurrency’s share of market capitalization rose to highest level since April 2017 earlier this week.    The Trade The Result       We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets.  Create an account on StockTwits and then subscribe! Subscribe Here   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. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? 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