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Six-Day Winning Streak Ends
BTC: Price: $9,120 | MCAP: $162 billion | 24-Hr Volume: $16.22 billion
Short-term trend: Pullback likely
Bitcoin ended on a negative note yesterday, snapping the six-day winning streak, which was the longest since mid-July 2018.
The relative strength index on both the 4-hour and hourly chart is creating lower highs, a sign of buyer exhaustion. As a result, a minor correction could be in the offing.
A break below $9,000 would validate the bearish divergence of the RSI and open the doors to rising trendline support at $8,600 on the hourly chart.
The case for price pullback would weaken if the 4-hour chart RSI violates the descending trendline, representing bearish divergence, In that case, the price will likely rise to $8,644 – 38.2 percent Fibonacci retracement of the sell-off from $20,078 to $3,193.
Long-term trend: Bullish
BTC’s previous three-day candle closed above the high of $9,006 hit on May 30, establishing another bullish higher high. It is worth noting that the cryptocurrency has charted a series of higher lows and higher highs since early February.
Further, BTC closed last month with 62 percent gains – the highest since August 2017 – reinforcing the falling wedge breakout confirmed by April's candle.
The 5- and 10-month moving averages have produced a bullish crossover for the first time since September/October 2015.
So, the cryptocurrency looks set to test $10,000 and may break higher. The long-term bullish outlook would be invalidated if and when the price finds acceptance below May's low of $5,263.
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ODEM Breaks Higher ODE: Price: $.030 | MCAP: $72.06 million | 24-Hr Volume: $2.1 million
Short-term trend: Pullback
ODEM's break to a new high not seen in over 150 days has placed it in the list of best performing cryptocurrencies on CoinMarketCap. The cryptocurrency has added 11.77 percent over a 24-hour period on the back of modest volumes.
The daily RSI is overbought so mind the pullback to former resistances at $0.28.
Long-term trend: Neutral
The long-term trend has the bullish potential for continuation provided its price can reside firmly above former resistances at $0.28 with the Chaikin Money Flow continuing to print a higher reading, showing an increase in buying pressure.
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Tezos, Not With A Bang But With A Whimper XTZ: Price: $1.23 | MCAP: $809.8 million | 24-Hr Volume: $6.6 million
Short-term trend: Bearish
XTZ is down 8.21 percent on the day after falling below the 50 percent (pivot point) retracement line with strong conviction.
The challenge for the bulls now lay in bringing prices back above the aforementioned pivot, lest they expose themselves to greater drawdawn from greater sell pressure, seen on the weak reading on the Chaikin Money Flow.
Long-term trend: Neutral
If prices manage a break back above former price highs, then consider a strong reversal in the trend should continuation be backed by strong volume by the time the end of the monthly close.
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Saifedean Ammous, Bitcoin economist and author of The Bitcoin Standard, is arguing here that Facebook’s cryptocurrency Libra could destroy the national currencies of third world countries.
That possibility cannot be ruled out given the fact that Libra will be backed by US dollars – a global reserve currency third world countries – and quite a few emerging economies (EMs) persistently suffer from foreign currency leakages and current account deficits.
Put simply, third world countries are almost always facing forex reserves crisis. As a result, a dollar-backed Libra on a smartphone will be infinitely superior to national currency in market depth and more importantly in maintaining value and purchasing power.
That said, the very fact that Libra could destroy national currencies is the reason why every regulatory authority worldwide would want to put barriers on Facebook’s cryptocurrency.
It is worth noting that the initial regulatory response to Facebook’s cryptocurrency has not been so positive.
For instance, German parliament is concerned that Facebook will become a “shadow bank”, according to Bloomberg. Meanwhile, US lawmakers have asked Facebook to put its cryptocurrency plans on hold for the time being. |
@Master91Builder believes the bullish sentiment in the bitcoin market has reached extremes and we could soon see a sharp drop. An overstretched bullish sentiment often ends up in a sudden and sharp price slide. This is because in an overtly bullish market, investors tend to panic even in case of a minor price drop. That leads to rapid closure of long positions, which ends up creating downward pressure on prices. That said, currently, there are no signs of bullish sentiment reaching extremes. In fact, the long/short ration currently stands at 0.937, as per Bitfinex. So, as of now, the market is quite neutral on bitcoin. However, the price rallied nearly $1,500 in the run up to Facebook’s cryptocurrency announcement on Tuesday. Therefore, a technical correction looks overdue. |
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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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Slumbers Above $9K