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BTC: Price: $3,947 | MCAP: $70.18 billion | 24-Hr Volume: $10.40 billion
Outlook: Bullish, consolidation likely
All Eyes on the 100 day MA
Bitcoin's approximate $285 rally yesterday sent price to a 5-week high of $3,957 and to test crucial resistance in the form of the 100 day moving average (MA) for the first time in over three months.
Indeed, the developments show bullish strength is gaining but price will need to close a daily candlestick above the 100 day MA for a greater chance at achieving more upside.
If surpassed, the Fibonacci extension point drawn from the Dec. 15 swing low to the Dec. 24 swing high, illustrates $4,200 as the next major hurdle in the way of the $5,000.
Since bitcoin's price found little support when it fell from $6,000 to $4,000, there should theoretically be little resistance on the way back up, aside from major moving averages like the 200 day MA that is currently located near $5,200.
Even if price pulls back or consolidates in the near term, the view will not immediately turn bearish since yesterday's move was backed by $9.9 billion of trade volume across exchanges, which is its most since May 3 of last year according to Coinmarketcap.
Traders can also evaluate the possibility of an ascending triangle forming on the higher time frames. Ascending triangles are bullish in nature, so bitcoin would achieve further bullish confirmation if the pattern's resistance at $4,078 is surpassed.
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EOS: Price: $3.78 | MCAP: $3.48 billion | 24-Hr Volume: $2.18 billion
Outlook: Pullback into consolidation
EOS jumps 30 percent in 24-hours
EOS started the week off strong, surging 30 percent on Monday to break above previous resistance located at $3.22. Volume has also experienced a notable uptick as investors which adds credence to the bullish breakout.
The relative strength index, which demonstrates momentum and oversold/bought conditions has landed well into overbought territory, an indication that a pullback is in the cards as investors my enter a period of profit-taking while price is just below 200 day MA resistance.
Bulls now need to protect the aforementioned resistance level as support in order to maintain the bullish view.
LTC: Price: $47.46 | MCAP: $2.9 billion | 24-Hr Volume: $1.49 billion
Outlook: Pullback
Litecoin Oh Litecoin!
Having experienced a rejection along the 100-DMA on Jan. 8, litecoin had something to prove and this time around it was able to close above both the 100-DMA and 200-DMA (marked blue and red respectively).
Up 10.80 percent over a 24-hour basis, LTC now appears to be pulling back from an overbought period seen on the daily RSI but has found footing just below those conditions and is still attempting to break the prior support turned resistance (red block).
A period of consolidation may be in the offing today as per the overbought readings but expect price to pick up bid once again if the market leader, bitcoin, continues its bullish rally today.
It's important to remember the higher time-frames are still in a bearish trend, but the recent market moves above key moving averages like the 100-day and 200-day indeed show investors may be coming out of "crypto winter" hibernation.
Litecoin needs to pass above $50 in order to break the bearish market structure.
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Is JPM a Cryptocurrency?: The world’s sixth largest bank JP Morgan announced last week it will be launching its own “cryptocurrency” called JPM Coin, although many skeptics believe its permissioned and centralized ledger mean it’s far from a real cryptocurrency. That said, such a notable entity supporting cryptocurrency and blockchain technology can only benefit the broader industry as it validates some of the potential early blockchain pioneers envisioned. Critics also argue JPM Coin will make Ripple irrelevant since their business models are closely aligned. While one could take that stance, JPM Coin’s existence could also be seen as Ripple’s ultimate validation, in which case it could act as a more decentralized version of JPM Coin to suit a broader range of clients.
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New Bitcoin Valuation Metrics: Cryptocurrency researcher and NVT ratio pioneer Willy Woo recently created new metrics that can be used to makes sense of the trends seen in bitcoin’s market. For finding bottoms in bitcoin's infamous bear markets, “Delta cap” appears to be the most useful since it accurately pinpointed the bottom in both the 2011 and 2015 bear markets. Delta cap is the difference between Realized cap and Average cap, where the average cap is the cumulative total market cap of bitcoin divided by the market’s duration in days. Another metric,“Top cap,” is the average cap multiplied by 35 and has accurately called all major bull market tops.
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 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 |
@Carpenoctom makes note of the potential Adam and Eve bottom pattern that has formed on bitcoin's price chart.
The pattern can be described as two successive troughs, the first being "V" shaped and the second having a more rounded market structure.
The implications of the pattern are the same as a double bottom, so according to the pattern, significantly more upside is likely if price surpasses the peak in between the two valleys.
The analyst also presents the possibility of an "E2E" or "edge to edge" trade set up using the Ichimoku cloud indicator.
This set up presents itself when price enters a resistance cloud with a flat top, which suggests price will travel from one end of the cloud to the other.
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Deribit is a relatively new cryptocurrency options and futures trading platform, similar to BitMEX, and recorded its most notional trade volume ever yesterday of just over $25 million.
The crypto market wide rally yesterday being accompanied by record notional trade volumes on platforms such as Deribit can be seen as a bullish indication.
If yesterday's rally was back by volumes similar to those recorded as of late, the move would run the risk of being a fake out or bear trap. The record volumes on Deribit however show that investors are indeed interested in joining in on the fun this time around which may help fuel and even further rally. |
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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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Bulls Eye Continuation