Bear Risks Build

Bitcoin sees weakest close in over 7 weeks

To view this email as a web page, go here.

February 7, 2019 BTC: Price: $3,365 | MCAP: $59.88 billion | 24-Hr Volume: $5.25 billion Outlook: Bearish BTC remains on the defensive Bitcoin suffered its lowest UTC close in over seven weeks on Wednesday.  The leading cryptocurrency by market value ended the session (as per UTC) at $3,328 – the weakest daily close since Dec. 16 – according to Bitstamp data, reinforcing the bearish view put forward by the rejection at the 50-candle moving average (MA) on the 6-hour chart yesterday.  The close at multi-week lows also dashed hopes of a falling wedge breakout. Further, the cryptocurrency also created a bearish outside reversal candle on the daily chart yesterday, opening the doors for a drop to the falling channel support at $3,230. As a result, the slow drip sell-off from December highs above $4,200 witnessed over the last six weeks is likely to continue. BTC could soon challenge recent lows near $3,300 and may extend the decline toward the low of $3,100 seen in December. The bearish case, however, would weaken if the 6-hour chart 50-candle MA hurdle at $3,434 is scaled. That could yield a corrective rally to $3,658 (high of the bearish gravestone doji created Jan. 26).  Read Analysis BNB: Price: $8.48  | MCAP: $27.7 million | 24-Hr Volume: $2.5 million Outlook: Trending bullish-Overbought BNB Rockets To 84-Day High Binance Token (BNB) has surpassed a prior region of support turned resistances and has plowed through $7.13 (prior resistance) on Feb. 5 before continuing on to land at its highest point since Nov. 15. The higher low, higher high market structure is a bullish continuation pattern, provided the same bullish momentum is sustainable, seen by large increases on the daily volume bars. The RSI is signaling a pullback likely to trigger during the middle of the trading period and will be interesting to see if it can continue to hold the same structure or if the bears regain control to break the trend and set a new low. For now, consider BNB to be bullish until that pattern breaks with a conservative approach on each retracement. BCHSV: Price: $101.65  | MCAP: $27.7 million | 24-Hr Volume: $2.5 million Outlook: Bear pullback Bitcoin Cash SV Enjoys Brief Gains  The SV variant of bitcoin cash is currently up 3.35 percent  BCHSV was trending inside a limited falling wedge before a breakout ensued toward the apex of the two intersecting trend lines.  However, due to increasing sell pressure, the bulls have been unable to maintain any sustainable rally despite a larger than average total volume bar being printed on the day, a markedly bearish sign. The bounce from the RSI showed potential but as soon as the long wick retracement was created, volatility dropped as indecision took the day.  The newly formed daily candle shows a small range between $60.80 and $66.00 whereby a breakout from that limit would set the directional bias going forward. MakerDAO, A Closer Look: MakerDAO is a smart contracts platform powered by the Ethereum project that functions as a software-based, community owned and operated decentralized margin facility. In traditional finance, margin refers to the buying of securities with cash borrowed from a broker, using the purchased securities as collateral. MakerDAO was launched in Dec. 2017, offering secured loans of equal cost to anyone in the world through the mechanics of a Decentralized Autonomous Organization (DAO) which is governed by set rules encoded as a computer program that is transparent, controlled by users and not influenced by a central governing body. FULL STORY Monetary Maximalism: The idea that one form of money will emerge as the “big winner” and soundest of them all is known as monetary maximalism. While bitcoin maximalists believe this will be the digital currency’s reality someday, there are clear hurdles currently preventing that from coming to fruition. The biggest perhaps is the misalignment of incentives within cryptocurrency companies. Whether or not cryptocurrencies other than bitcoin are viable, crypto companies benefit from there being a multitude of options. Whether it be exchanges, wallets, or investment funds, all have the incentive to expand the number of cryptocurrencies in existence in order to generate more revenue. With this kind of mentality and the cultural following that cryptocurrencies spawn, it seems bitcoin could have digital currency competitors for the rest of its existence. FULL STORY MARKETS 101 Q: What are supports and resistances? A: Supports refer to a 'price floor' in price action while resistances take note of a 'price ceiling' that inhibit or restrict the movement and direction of a trend based on prior historical relationships.   TAKE A DEEPER DIVE HOT: Price: $0.001131  | MCAP: $150.64 million | 24-Hr Volume: $10 million Outlook: Neutral HOLOed up in a contracting triangle HOT, ranked 30 as per market capitalization on CoinMarketCap, is currently reporting a 2.26 percent drop on a 24-hour basis.  As seen in the daily chart below, the cryptocurrency is trapped in a symmetrical triangle amid low volumes. As a result, the immediate outlook is neutral.  A UTC close below the lower edge of the triangle would validate the bearish crossover between the 5- and 10-day moving averages (MAs) and open the doors for a drop to 0.0008. The prospects of triangle breakdown would rise if the 14-day RSI finds acceptance under the ascending trendline. At press time, the indicator is probing that trendline support.  A bull breakout would signal a continuation of the rally from January lows near 0.00054 and could yield re-test of the recent high of 0.0016.    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   ICON's BTC-denominated exchange rate (ICX/BTC), which was teasing a bullish breakout 4-hours ago, is now trading above 0.0000061, having hit a high of 0.0000670 soon before press time.  The sharp rise is backed by highest bullish volume since March 2018.  As seen in the tweet, the 14-day relative strength index (RSI) is also reporting a falling channel breakout.  The cryptocurrency, therefore, could continue to rank higher on the list of winners over the next few days.  @Shaughnessy119 lists three reasons to refrain from investing into bad projects.  The first being low or no funding, which is likely tied to the cryptocurrency bear market.  Further, only meaningful upgrades are likely to sail through the tough times.  That brings us to the third point – Interoperability and composability are seen eliminating redundant chains.  Interoperability is communication between chains and composability means building everything on the dominant chain – which would be the one with meaningful upgrades and use cases.  Most experts believe composability and interoperability will drive real consumer use cases in crypto in future.  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? You can update your preferences or unsubscribe from this list