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Bitcoin Faces Correction on Bull Breather
BTC: Price: $9,400 | MCAP: $170 Billion | 24-Hr Volume: $27.54 Billion
Short-term trend: Deeper correction likely
Bitcoin is currently flashing green, but may face selling pressure in the next 24 hours or so.
The top cryptocurrency's daily chart shows a repeated failure to scale the 100-day average resistance – a sign of buyer exhaustion. Monday's big red candle with a long upper shadow is also echoing similar sentiments.
Therefore, the probability of BTC diving out of the hourly chart contracting triangle is high. A breakdown, if confirmed, would strengthen the case for a retest of the former resistance-turned-support of $8,820.
Note that China's state media warned against irrational exuberance after investors cheered President Xi Jinping's encouraging comments on blockchain adoption by sending blockchain-related stocks surging on Monday.
The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.
Long-term trend: Bullish
Bitcoin's long-term outlook is bullish, as mining reward halving is due in May 2020. The bullish case looks stronger if we take into account the strengthening narrative that the top cryptocurrency is a digital gold and a hedge against inflation.
Many observers believe the negatives interest rate era could force traditional investor to pour money into cryptocurrencies. After all, BTC is the best performing asset of 2019 and possibly of the decade.
Long-term technical studies are also biased bullish. For instance, the 100- and 200-period averages have produced a bullish crossover on the three-day chart. A similar bull cross in March 2016 was followed by a 21 month bull market.
The bullish view would be bolstered if and when prices exit the four-month falling channel seen on the weekly chart, confirming a resumption of the rally from lows near $4,000 seen in April.
That looks likely by the year's end, as the three-day chart MACD, which has a strong record of signaling big moves, has turned bullish for the first time in over three months.
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Augur In Lift Off
REP: Price: $9.76 | MCAP: $107.6 million | 24-Hr Volume: $12.5 million
Short-term trend: Overbought
REP is today's best performing crypto in the top 100 at CoinMarketCap after its fifth consecutive green candle on the daily chart.
Up 12.62 percent on the day, REP has now entered into a period of bullish exhaustion as seen by lower levels of daily volume and an RSI residing in overbought territory.
Long-term trend: Cautiously bullish
The awesome oscillator (AO), an indicator that measures buying and selling momentum, has given a new bull signal not seen in over 36 days, hinting at growing demand long-term for REP.
That fact is coupled with price moving above the 55-period EMA on the daily chart, an indication of mid-term bullish price action when above and generally lasts between 80 to 120 days above, usually during strong bullish trends.
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| Bytom On The Slide
BTM: Price: $0.16 | MCAP: $122.6 million | 24-Hr Volume: $143.6 million
Short-term trend: Pullback/Neutral
The pullback period has been halted by a previous area of resistance, now looking to flip to support at around $0.12 should the bulls show up to prevent further losses on the day.
Down 24.1 percent over a 24-hour period, BTM's prior daily candle left a long topside wick after a sell-off brought prices from the peak of $0.24 leaving room for the daily RSI to cool off, in aspiration of a small bounce to defend the recent losses.
Long-term trend: Cautiously bullish
BTM officially crossed bullish on Oct. 27 with a strong close above the 200-day moving average on supporting buying volume.
It is crucial that price action remains above that line as that would signal a convincing formation of a reversal is imminent and the trend long-term has switched from bearish-to-bullish.
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Popular analyst @DoveyWan is arguing here than an average annual household income in China is $10,000 and finds bitcoin too expensive.
As a result, Chinese investors first poured money into stocks and cheap alternative cryptocurrencies on President Xi Jinping's encouraging comments about blockchain adoption.
The argument does not hold ground because the top cryptocurrency is denominated in satoshis, which are 1/100,000,000 of a bitcoin.
An individual, therefore, can purchase bitcoin and other cryptocurrencies in fractions contrary to stocks which require the purchase of a full share. For instance, on Coinbase, an investor can purchase or sell as little as 2.00 of digital currency denominated in the local currency.
That makes BTC better than the U.S. Dollar for purchasing something with a tiny value.
That said, a majority of traditional investors are not aware of the fact that bitcoin can be split into smaller pieces. |
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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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Bitcoin Divisibility