 
|
BTC: Price: $3,365 | MCAP: $59.78 billion | 24-Hr Volume: $5.25 billion
Outlook: Bearish
Bitcoin hits 8-day low
Bitcoin fell to $3,353 earlier today – the lowest level since Jan. 29 – invalidating the bullish view put forward by the falling wedge breakout, confirmed in the early Asian trading hours.
More importantly, it has charted another bearish lower high along the 50-candle moving average (MA) on the 6-hour chart.
Notably, that average line has blocked a number of attempted corrective rallies over the last three weeks. For instance, bitcoin’s quick recovery from lows near $3,400 on Jan. 22 had triggered hopes of a stronger recovery rally. That price bounce, however, failed to clear the 6-hour chart 50-candle MA for four days straight and the repeated bull failure was followed by a drop to $3,322 on Jan. 29.
As a result, the outlook remains bearish while BTC is held below that MA hurdle, currently at $3,450. Recent history shows bull failures at the 6-hour 50-candle moving average are often followed by a drop below the recent low. BTC, therefore, risks printing fresh multi-week lows below $3,322 (Jan. 29 low), having faced rejection at the crucial moving average hurdle earlier today.
A convincing 6-hour close above the moving average resistance will likely weaken bearish pressures and allow a corrective rally toward $4,000.
Read Analysis
 |
|
|
|
|
BNB: Price: 0.00235022 BTC | MCAP: 331,793 BTC | 24-Hr Volume: 39,180 BTC
Outlook: Bullish
Binance coin hits highest level since June 2018
Binance coin's BTC-denominated exchange rate (BNB/BTC) is currently trading at 0.00232375, having printed a high of 0.002488 earlier today – a level last seen on June 24, 2018.
The cryptocurrency, now ranked tenth by market capitalization on CoinMarketCap, has doubled in value in the last 2.5 months.
More importantly, the double-digit gains seen in the last 24 hours are backed by a rise in trading volumes. The 24-hour trading volume currently stands at $133 million; up nearly 80 million from the levels seen yesterday, according to CoinMarketCap. Notably, 38 and 31 percent of total trading volume is coming from BNB/USDT (tether) and BNB/BTC pairs, respectively.
A number of factors have played a role in keeping BNB better bid amid the broad-based risk aversion in the crypto market. To start with, the listing of BitTorrent token (BTT) likely boosted demand for BNB. Further, addition of a new stablecoin Stronghold USD likely improved liquidity.
Meanwhile, developers announced five days ago that Binance launchpad will commence the Fetch.AI (FET) token sale at 2019/02/25 2:00 PM (UTC), which will accept BNB.
The path of least resistance, therefore, is to the higher side. BNB/BTC, however, is looking overbought, as per the 14-day relative strength index (RSI) of 80.28 – the highest reading since April 2018. The RSI's on the hourly and 4-hour charts is also signaling overbought conditions.
Hence, further gains could be preceded by a corrective pullback, possibly to the ascending (bullish) 10-day moving average (MA), currently at 0.022. A strong bounce from that level would reinforce the bullish view, while a UTC close below that level would neutralize the immediate bullish setup.
 |
|
US Fiscal Crisis and Crypto: Contrary to popular belief, fiscal crises do not always end in hyper inflation. As the author of this post suggests, governments of countries with weak central banks tend to insist deficits be monetized, which leads to inflation whereas countries with a strong central banks like the US and the Fed attempt to ease bulging debts by way of a credit crunch. The latter runs the risk of precipitating debt deflation which carries negative economic implications as debt then become harder to service, worsening the hypothetical recession. If this comes to fruition as many analysts suspect, bitcoin could be the first asset to be removed from portfolios since it is currently perceived as a high-risk tech investment rather than safe haven or commodity given its issues with and ambiguity surrounding volatility, custody, security, and governance.
FULL STORY
What Is Market Structure?: Many people think they understand what market structure means without actually ever having studied it. A simple concept that relates to an asset's trend that contain certain identifiable characteristics. The three basic structures are an uptrend, with higher lows and higher highs, the downtrend, with lower lows and lower highs, as well as sideways trading which consists of a price equilibrium between buyers and sellers until price breaks out. Consolidation is also a type of sideways trend whereby price action is trapped within a particular range while the parabolic advance moves in a strong upward trend with very limited pullbacks. It is important to identify a break in the market structure to enter into or exit out of particular positions.
FULL STORY |
| MARKETS 101 Q: What is a trading journal?
A: A trading journal helps keep track of your trade performance, including your reasoning and mental state to help curb negative habits and reduce financial losses. |
|
|
|
|
|  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 |
Bollinger bands is one of the most used technical tool study in a ranging or low-volatility market.
It consists of an upper and lower band that are typically +2/-2 standard deviations of the 20-day moving average. Hence, narrowing bands are considered a sign of falling volatility, as mentioned by @CoinDeskMarkets.
More importantly, the upper and lower bollinger bands are used to gauge the direction of the range breakout. A convincing break above the upper band is widely considered a bull breakout. Meanwhile, a move below the lower band is usually followed by a sell-off.
Ofcourse, like every technical indicators, bollinger bands should be studied along with other tools like the relative strength index (RSI), MACD. |
Bitcoin Market-Value-to-Realized-Value (MVRV) ratio created by Murad Mahmudov & David Puell uses realized market cap to study the market cycle.
Realized capitalization is calculated aggregating the UTXOs (the unspent output from bitcoin transactions) at the price they last moved as opposed to counting all of the mined coins at equal, current price.
MVRV is calculated by simply dividing market value by realized value on a daily basis. A reading above 3.7 represents overvaluation, while a below-1 print represents undervaluation.
As of writing, MVRV is nearing 1. So, it could be argued that BTC is closing on bottom. |
|
|
| 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. |
|
| | | | |
Bears Prevail