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Bitcoin Tanks By $500
BTC: Price: $7,500 | MCAP: $135.68 Billion | 24-Hr Volume: $19.86 Billion
Short-term trend: Cautiously Bearish
Bitcoin's low volatility consolidation has ended with a fall to $7,500, the lowest level since June, according to Bitstamp data.
The range breakdown indicates the sell-off from September's high above $10,000 has resumed and the cryptocurrency could slide further to $7,200.
That said, sellers need to observe caution as a lagging indicator is about to turn bearish for the first time in over a year. The 50-day and 200-day averages are set to produce a "death cross" – a bearish indicator – which has trapped sellers on the wrong side of the market in the past.
For instance, BTC had bottomed out near $220 with the confirmation of the death cross in mid-September 2015. Notably, the bear trap was formed 11 months ahead of the August 2016 mining reward halving – a price-bullish event. Interestingly, the latest death cross is happening six months ahead of the reward halving and could mark a bottom in BTC.
If history is a guide, the cryptocurrency may bottom out with the confirmation of the bearish crossover, which is set to happen in the next couple of days.
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.
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Basic Attention Token Clocks Three-Month High
BAT: Price: $0.2499 | MCAP: $955 million | 24-Hr Volume: $155 million
Short-term trend: Bullish
BAT/USD is currently reporting 7 percent gains and is the best performing top 100 cryptocurrency on CoinMarketCap.
The daily chart shows the 200-day moving average (MA) at $0.27 has come into play for the first time since July. A UTC close above the key average would validate the upside break of the trendline falling from April 21 highs and open the doors for stronger rally to $0.30.
Supporting the bullish case are the ascending 5- and 10-day moving averages and the above-50 print on the relative strength index.
Long-term trend: Bullish
BAT is flashing green for the fourth consecutive week. While the recent rise is encouraging, the cryptocurrency is still trapped in a falling channel on the weekly chart. A bullish breakout would be confirmed if prices print a UTC close above $0.2420 on Sunday.
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Tezos Hits One-Month Low
XTZ: Price: $0.8136 | MCAP: $537 million | 24-Hr Volume: $11.91 million
Short-term trend: Bearish
Tezos' BTC-denominated exchange rate (XTZ/BTC) dropped to 10,100 sats soon before press time. That was the lowest level since Sept. 26, according to Bitfinex.
The downside break of the rising trendline confirmed on Monday and the below-50 reading on the relative strength index indicates the path of least resistance is to the downside. The MACD histogram shows the bearish momentum is strengthening.
XTZ, therefore, risks falling further to 10,000 sats. The bearish case would weaken if and when prices rise above 11,270 sats, invalidating the bearish lower highs setup.
Long-term trend: Neutral
XTZ is trapped in a contracting triangle or a narrowing price range on the weekly chart. The outlook would turn bullish if prices print a UTC close above 11,470 on Sunday, confirming a triangle breakout. On the other hand, a range breakdown, if confirmed, would imply a continuation of the sell-off from April's high near 27,000.
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The Trump administration pricked the bitcoin bubble of 2017 by allowing the introduction of futures products, Christopher Giancarlo, who left the U.S. Commodity Futures Trading Commission (CFTC) as chairman in April, told CoinDesk.
The top cryptocurrency hit a high of $20,000 in mid-December 2017, taking the year-to-date gain to a staggering 1970 percent.
Notably, by December, analysts had begun comparing bitcoin's meteoric rise with the Tulip bubble, which reportedly brought down the Dutch economy.
The first major bubble since 2008 forced the Trump administration into action, Giancarlo said on Monday.
The Trump administration allowed the introduction of futures product with a hope that it would rein in the markets driven by optimists by allowing pessimists to express their view (by shorting futures contracts).
The ploy worked, as BTC topped at $20,000 a week ahead of the futures launch and fell to $6,000 in the first week of February 2018.
Prices went on to hit a low nears $3,100 in December last year before rising to a high of $13,880 in June this year. |
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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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Four-Month Lows