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Bitcoin Drops Ahead of US Hearings
BTC: Price: $10,140| MCAP: $181.26 billion | 24-Hr Volume: $24.36 billion
Short-term trend: Neutral
Bitcoin has bounced up from the ascending (bullish) 50-day moving average support of $9,900, however, so far, the upside has been capped above $10,300.
The three-day chart is reporting a convincing close below the historically strong support of 10-candle MA. Further, the weekly chart is flashing buyer exhaustion signs in the form of candles with long upper wicks and bearish divergence of RSI.
Further, it is worth noting that Facebook’s head of Calibra – one of the entities set up to govern and develop the crypto project – David Marcus is scheduled testify to lawmakers on the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.
Historical data shows the cryptocurrency tends to drop ahead of Congressional hearings on cryptocurrencies.
All-in-all, prices could drop to $9,614 (July 2 low) in the next 24 hours. A UTC close below that level would confirm a bull-to-bear trend change.
A drop to $9,614 may remain elusive if prices break above $10,732, invalidating the bearish lower highs pattern on the hourly chart.
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.
Also, a number of bullish price drivers are lined up over the next few months, according to Alex Kruger, a prominent technical and fundamental analyst. As a result, investors may view any pullback to levels below $10,000, as just another chance to get involved in the bull market.
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Huobi Token Ignores Recent Activity HT: Price: $4.08 | MCAP: $204.1 million | 24-Hr Volume: $128.7 million
Short-term trend: Cautiously bullish
HT has risen 1.2 percent over a 24-hour period despite bitcoin's (BTC) $1400 sell-off and is but one of a few in the green today as most of the crypto markets reside in the red.
Since its bull cross of the 100-period moving average and the 55-day exponential moving average, HT has printed a bullish market structure of higher highs and higher lows, until recently. If prices begin to dip below the 55-day EMA at around $3.50, abort the short-term bull view.
Long-term trend: Pullback
The daily RSI currently sits well above the neutral 50 line, hinting that there may still be some room for growth, but with the setting of a lower high on the indicator it appears to be forming a bearish divergence from the top.
A pullback in the long-term is likely to ensue should the greater markets continue to bleed by week's end of trade and the CMF fails to pass back above the 0 line.
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| Bitcoin SV Hoping For An Oversold Bounce BSV: Price: $119.60 | MCAP: $2.032 billion | 24-Hr Volume: $443.6 million
Short-term trend: Oversold
BSV may have found a footing along former resistance now considered support with a candle body hovering slightly above $118.96 in which combined with an oversold RSI on the daily chart, a recovery in its recent losses is possible.
Confirmation of further upside would come from a cross of the CMF above the neutral 0 line, which appears to making ground based on the small demand from the bulls at current prices.
Long-term trend: Neutral
Until the trend breaks lower and former resistances are conceded, price action can be considered neutral, thanks in part to its retention of a bull market structure with a deep pullback currently under way.
Conversely, if prices were to rise back above $163 then the bull bias would remain in tact.
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Ether's (ETH) price, which was trading above $270 on July 12, fell to $250 over the weekend, as forecasted by @CoinDeskMarkets.
The prediction was based on the three-day chart, which was flashing signs of bull-to-bear trend change.
For instance, the moving average convergence divergence indicator (MACD), a widely followed momentum indicator, was reporting bearish conditions with a below zero print for the first time since December.
Further, the RSI was reporting a double top breakdown, also a bearish reversal pattern. It is worth noting that many analysts draw trendlines and spot patterns on the RSI to track changes in trend.
Also, the bearish engulfing candle on the price chart was indicating the path of least resistance is to the downside.
ETH/USD fell to $250 and extended losses to $200. As of writing, it is changing hands at $220. |
Ethereum's ether token, the second largest cryptocurrency by market capitalization, fell below $200 on Sunday.
Technical charts had warned of a price drop to $250, as discussed in "On the Money" section. The remaining $60 sell-off was likely triggered by a technical incident on Bitstamp, one of the prominent cryptocurrency exchanges in the world.
@Skew_markets says, "a sell order on Bitstamp flashed crashed ETH 30% from $270 to $190 at 09:30 UTC on Sunday morning."
Flash crashes usually happen when the liquidity (trading volume) is low, which was the case with ether – only $4 million worth of ether was traded in 15 minutes to 09:30 UTC.
The sudden 30 percent plunge also dragged the price of ether drivative instruments lower. For instance, the BMX perpetual swap contract traded $20 below the price of ETHUSD, i.e. at a very unusual 7% discount.
The key take away from the ether episode is that investors should check trading volumes before taking trades. Staying on the sidelines is always the best when liquidity is low. |
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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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