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Bitcoin Slips to Lowest Since June
BTC: Price: $8,040 | MCAP: $145 billion | 24-Hr Volume: $15.48 billion
Short-term trend: Bearish
Bitcoin is currently trading at levels above $8,000, having hit a 3.5-month low of $7,714 on Bitstamp in the Asian trading hours.
The recovery could be extended further to $8,300, as the 4-hour chart relative strength index (RSI) has charted higher lows (bullish divergence).
Corrective moves, however, will likely be short-lived, as the long duration charts are biased bearish. For instance, the weekly line chart is reporting a double bottom bearish reversal setup. That pattern has created room for a drop to $7,500 (target as per the measured move method).
Further, the three-day chart is reporting a bearish setup in the form of a contracting triangle breakdown, descending moving averages and a below-50 reading on the relative strength index.
All-in-all, the path of least resistance is to the downside and the short-term bearish case would weaken if prices find acceptance above the 200-day moving average, currently at $8,417.
Long-term trend: Cautiously bearish
Bitcoin charted consecutive inside bar candlestick patterns in July and August, indicating indecision or consolidation.
The tug of war between the bulls and the bears has ended with a 20 percent drop in September.
Put simply, the outlook has turned bearish. An inside bar bearish reversal would be confirmed if prices close today (UTC) below $9,049 – the low of the first inside bar (July). With BTC currently trading at lows near $8,000, a bearish close looks like a done deal.
Hence, a drop to $7,000 or even lower looks likely. Popular analyst Josh Rager believes BTC could drop to $6,600-$6,300 where there is major interest.
A break above the former support-turned-resistance of July's low of $9,049 is needed to invalidate the bearish setup.
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Algorand Testing The Line
ALGO: Price: $0.24 | MCAP: $93.6 million | 24-Hr Volume: $64.6 million
Short-term trend: Bull potential
ALGO is up 14.81 percent on the day and is currently one of the best performing crypto in the top 100 at CoinMarketCap after a strong daily close on September 29.
That rally could be extended should prices rise above two major hurdles at $0.24 and $0.30, but will likely endure a small sell-off period before the bulls gain confidence for another leg up. Long-term trend: Bearish
The awesome oscillator demonstrates how ALGO has struggled to find a bullish foothold in its price action since first being listed on the Huobi exchange on June 21.
That has translated into a lower high, lower low bearish market structure that requires a solid close above the aforementioned hurdle at $0.30 in order to revive bullish aspirations moving forward.
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PundiX At Risk
NPXS: Price: $0.0000264 | MCAP: $82.1 million | 24-Hr Volume: $13.2 million
Short-term trend: Bearish
NPXS is in full capitulation mode and is at its lowest point since first being listed on the Binance exchange on June 21.
Down 9.04 percent over a 24-hour period, the 3-day chart illustrates the extent of large volatile swings currently being felt on its journey south; The bulls need to begin rallying for a greater defense at current levels or risk both the long-term and short-term prospects for future growth. Long-term trend: Bearish
While NPXS made an attempt to break the long-term bearish lower high market structure on May 28, that was swiftly rejected by strong selling pressure and sent prices reeling to their lowest point in its market life cycle.
A bullish reversal could be noted with a firm close above $0.00125 backed by consistent levels of growing (bullish) volume, but so far that prospect is challenging as no new catalysts have presented themselves decreasing its chances for future investment.
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How low can bitcoin go?
The top cryptocurrency by market value is currently reporting a 20 percent drop on a seven-day basis and could slide further to $7,000 in the near-term, according to technical charts.
A drop to $7,000 would mark an almost 50 percent slide from the high of $13,880 registered at the end of June and could force investors to reconsider the possibility of bitcoin hitting new highs above $20,000 next year.
Investors, however, should remember that the cryptocurrency is set to undergo mining reward halving (supply cut) in May 2020 and that could bode well for bitcoin's price.
Further, history tells us that pullbacks to the tune of 40 to 50 percent pullbacks are normal in the bitcoin market. For instance, BTC fell by 75 percent in 89 days in 2013 before charting a 1,600 percent price rise to new highs in the same year, as tweeted by popular analyst Josh Rager.
So, if history is a guide, then the ongoing pullback could be followed by a sharp 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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Bears In Control