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Wedge Breakout
BTC: Price: $10,235 | MCAP: $183 billion | 24-Hr Volume: $14.52 billion
Short-term trend: Neutral-to-bullish
Bitcoin is looking north with the 4-hour chart reporting a falling wedge breakout, a bullish reversal pattern.
The breakout has opened the doors for recent highs above $10,900. Supporting the bullish case is the moving average convergence divergence histogram's move above the zero line.
The case for a rise to $10,900, however, would weaken if prices drop below Wednesday's low of $9,855, although, as of now, that looks unlikely.
Note that a UTC close above the Aug. 20 high of $10,956 is needed to invalidate the bearish lower highs setup on the daily chart and revive the bullish view.
Long-term trend: Neutral
Bitcoin's monthly chart shows a double inside bar pattern – August’s candle falls within July's high and low and July’s candle is engulfed by June's high and low.
Double inside bars indicate indecision and lack of volatility and are considered a sign of bullish exhaustion, if they occur after a notable price rally, which seems to be the case here.
Also, the selling volume witnessed in July was the highest since March 2018. So, the long-run outlook stands neutralized.
A break above the high of the first inside bar ($13,200) is needed to revive the bullish outlook and a move below the low of the first inside bar ($9,049) will confirm a bearish reversal.
Traders can also take a weekly (Sunday, UTC) close or consecutive high-volume daily closes above $12,000 as a sign of bullish continuation. After all, a weekly close above $12,000 has remained elusive the last week of June.
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Inverse Head-And-Shoulders on Golem
GNT: Price: 572 SATS | MCAP: 5,519 BTC | 24-Hr Volume: 312.71 BTC
Short-term trend: Neutral
Golem is currently trading at 575 sats on Binance, representing 0.60 percent gains on the day.
The cryptocurrency's recent pullback from highs above 760 sats to levels near 520 sats (Sept. 6 low) has neutralized the short-term bullish case put forward by Aug. 29's 13 percent price rise, which was backed by the highest buying volume since May 2018.
That said, the short-term bullish case would be revived if prices rise above 600 sats. That would pave the way for a rise to 775 sats or completion of the right shoulder of the inverse head-and-shoulders pattern.
On the downside, acceptance below 524 sats – the low of Sept. 6's Doji candle – will likely invite stronger selling pressure, possibly leading to a drop to 400 sats.
Long-term trend: Bull above 775 sats
The long-term outlook would turn bullish if GNT confirms an inverse head-and-shoulders breakout with a move above 775 sats.
After all, inverse head-and-shoulders represent a transition from lower highs, lower lows to higher lows, higher highs and are considered bullish reversal patterns. A breakout, if confirmed, would open the doors to 1,100 sats.
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| Litecoin Down But Not Out
LTC/BTC: Price: 0.002218 BTC | MCAP: 22,955 BTC | 24-Hr Volume: 915.75 BTC
Short-term trend: Bullish
LTC/BTC is down 3.4 percent at press time, but the outlook remains bullish, as the falling wedge breakout, a bullish reversal pattern, confirmed on Sept. 7, is still valid.
Further, the 14-day relative strength index's double breakout is also intact.
The outlook would be neutralized and the case for a rise to 7976 sats (July 16 low) would weaken if prices find acceptance below the 10-day moving average (MA), currently lined up at 6612 sats. Long-term trend: Neutral
LTC/BTC created a "Doji" candle with a long lower wick last week, neutralizing the bearish setup. A bullish reversal would be confirmed if the cryptocurrency ends the current week (Sunday, UTC) above the previous week's high of 6840 sats on Monday.
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Facebook's cryptocurrency project Libra is finding no love across European Union.
CoinDesk reported earlier today that France is planning to block Facebook’s Libra cryptocurrency in the EU over concerns that it poses a threat to the sovereignty of national currencies.
Bruno Le Maire, Economy and Finance Minister of France, said, “I don’t see why we should dedicate so much effort to combating money laundering and terrorist financing for so many years to see a digital currency like Libra completely escape those regulatory efforts.”
Similar concerns were echoed by U.S. President Donald Trump and Federal Reserve's President Jerome Powell in July.
German European Parliament member Markus Ferber in July warned that Libra could turn Facebook into a “shadow bank”, similar to the unregulated private equity funds and broker-dealers that played a pivotal role in the 2008 financial crisis.
Put simply, regulators are unlikely to give a green signal to Libra unless Facebook addresses concerns regarding money laundering. |
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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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Breakout