BTC: Price: $3,910 | MCAP: $69.52 billion | 24-Hr Volume: $8.5 billion
Outlook: Minor pullback likely
Bitcoin may see a temporary price pullback to $3,800 in the next few hours, as the short duration charts have turned bearish.
To start with, the long upper shadows attached to multiple candles on the 4-hour chart signal bullish exhaustion near $4,000.
Further, the relative strength index (RSI) on the 4-hour chart has rolled over from the overbought territory and is pointing southwards. Meanwhile, the RSI on the hourly chart has turned bearish below 50.00.
Any dip to $3,800, however, could be short-lived as the outlook as the triangle breakout confirmed on the three-day chart yesterday indicates the path of least resistance is to the higher side. Further, the 5-candle exponential moving average (EMA) has crossed the 10-candle EMA from below, confirming a bullish crossover for the first time since July 2018.
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ONT: Price: $0.76 | MCAP: $243.5 million | 24-Hr Volume: $40.9 million
Outlook: Pullback-Bullish
Ontology Crosses The Green
Ontology is up 9.26 percent over a 24-hour basis and has managed to scale above the 100-day moving average with a stronger than average green candle, with conditions fast approaching overbought.
The RSI (set to 21 as per Fibonacci theory) shows a reading of 60.9 and is at its highest peak since May, a testament to the liquidity that has flowed back into the markets recently.
While the Chaiking Money Flow (CMF) shows a near flip above 0, almost above and confirming bullish momentum for the daily timeframe.
The short-term pullback will remain bullish above that key long-term moving average as volume begins to heavily favour the bulls.
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Elon Musk Talks Crypto: World famous entrepreneur and billionaire Elon Musk publicly shared his views on cryptocurrency in a podcast interview with ARK Invest, and they were largely positive. A couple major takeaways from the interview include his opinion that cryptocurrency is a better means of transferring value than existing currencies made of “pieces of paper,” and that he unfortunately does not plan to incorporate the technology into his electric car company Tesla. He isn’t a complete crypto bull however. Musk also shared his concerns with the amount of energy used to mine new bitcoins, describing the process as “computationally it is quite energy intensive.”
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Case for a Bitcoin Bottom: Alex Kruger, a well known economist and trader on “crypto twitter,” voiced his opinions on the current state of the bitcoin market, as well has his rationale for bitcoin having already bottomed out. In his view, markets can bottom out in one of three ways: following capitulation or trend-setting upwards break, or by slowly rolling over. By his analysis, bitcoin has already achieved two of the three scenarios. Kruger believes capitulation occurred during the drop from $6 to $3k and recently experienced the trend-setting break of a higher-low pattern. Only time will tell if Kruger is right, but it does seem bitcoin is beginning to show signs that a bottom is in sight.
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EOS: Price: $3.74 | MCAP: $3.9 billion | 24-Hr Volume: $1.55 billion
Outlook: Short-term pullback
EOS Loses Steam Near Key Resistance
EOS narrowly missed testing the 200-day MA hurdle lined up at $4.12 earlier today and is now trading at $3.75 - down 2 percent on the day.
Extreme overbought conditions signaled by the 14-day RSI are likely playing a spoilsport here. Further, the RSI on the 4-hour chart has diverged in favor of the bears.
As a resullt, a deeper pullback toward $3.5 cannot be ruled out.
The outlook as per the daily chart would remain bullish as long as the former resistance-turned-support of $3 is intact.
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Overbought/Oversold (OB/OS) measures are good for trading ranging markets as in trending markets, the likes of RSI, stochastic and MACD can remain overbought far longer than the bears ability to run loss making short positions, according to @PeterLBrandt.
For instance, RSI on S&P 500's monthly chart rose above 70.00 in January 2017 and remained in the overbought territory for 18 months. During that time period, the index rose from 2187 to 2940.
The latest example of trending market paying little heed to overbought signals is XAU/EUR (or gold in EUR terms).
The yellow metal has rallied more than 17 percent in the last five months and is reporting gains for the fifth straight week. What's more important is that the weekly RSI entered overbought territory at the end of December. So far, however, that has failed to cap the upside in XAU/EUR.
When it comes to cryptocurrencies, the story is no different. Bitcoin's monthly RSI rose above 70.00 in December 2016 and remained there for more than a year. During those 12 months, BTC went from $1,000 to $20,000. |
Bitcoin has jumped to highs near $4,000 this week on the back of strong volumes, triggering hopes of a convincing move above $4,000.
A failure to do so, however, could prove costly, especially if the cryptocurrency prints fresh multi-month lows below the December low of $3,100. In that case, $4,000 would emerge as a major obstacle in the road to recovery rally to the former support-turned-resistance of $6,000.
As @Josh_Rager says, "the longer bitcoin ranges in the $3k to $4K area the stronger resistance it becomes".
Simply put, every failed attempt to take out $4,000 resistance would reinforce the primary bearish trend. |
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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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Bull Cross