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Bitcoin Remains On The Defensive
BTC: Price: $8,260 | MCAP: $149.5 Billion | 24-Hr Volume: $15.03 Billion
Short-term trend: Bearish
Bitcoin has moved above the widely tracked 20-day moving average for the first time in nearly a month, as pointed out by popular analyst Josh Rager. Even so, the outlook remains bearish with prices holding well below the 200-day moving average – a barometer of long-term market trend.
Further, Friday's bearish outside bar candlestick pattern is still valid and the 4-hour chart is reporting a failed double bottom breakout and a rising channel breakdown. Note that a failed breakout is as good as a bearish reversal pattern.
All-in-all, BTC looks set to re-test recent lows near $7,750. The short-term bearish case looks stronger if we take into account the fading US-China trade tensions. After all, many observers had called a big move higher in BTC due to escalating US-China trade tiff.
Traders who bought bitcoins anticipating a rise in haven demand could feel tempted to square off their longs as the US and China reached a trade truce on Friday. Major investment banks, however, have warned that the trade truce may not last long in the absence of a proper dispute settlement mechanism.
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.
Technically speaking, the bullish case seems to have weakened following last month's sell-off. Bitcoin closed below $9,049 on Sept. 30, confirming a bearish inside bar candlestick reversal on the monthly chart.
The cryptocurrency had charted consecutive inside bar candlesticks in July and August, indicating indecision or consolidation.
The tug of war between the bulls and the bears ended with a 20 percent drop in September. Further, the weekly relative strength index is now reporting bearish conditions with a below-50 print.
Put simply, the path of least resistance is to the downside and a drop to $7,000 or even lower could be see in the next few weeks. The bearish case would strengthen once the 100-week MA support is breached.
The bearish setup would be invalidated if and when prices find acceptance above the former support-turned-resistance of $9,049.
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DigixDAO Flies Out The Gate
DGD: Price: $15.12 | MCAP: $32.9 million | 24-Hr Volume: $5.4 million
Short-term trend: Bullish potential
DGD is up 22.42 percent over a 24-hour period after prices rose bullishly amid high volatility before a swift rejection left a large topside wick in its wake.
Price action is hanging toward the top end of the 'Super Guppy', an indicator used to judge the momentum flips of a primary trend, which is currently acting as resistance.
The awesome oscillator (AO) and daily RSI are presenting a bullish bias post-rally alongside the most single day volume since April 22, 2019, which all point toward potential for a reversal in the downward trend.
Long-term trend: Cautiously bullish
As stated above, DGD could be entering a new phase, with an opportunity to reverse the damage from the downward trend that has been on-going since June of this year.
Keep an eye on $20.52 and $23.13 to see if the bulls can close out beyond the recent peak high and the 200-day moving average, respectively.
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| EDUCare Slumps
EKT: Price: $0.14 | MCAP: $120.6 million | 24-Hr Volume: $7.4 million
Short-term trend: Bearish
EKT is one of today's worst performing crypto, currently down 7.14 percent and trending below the 200-period moving average on the 4-hour chart.
The RSI and awesome oscillator (AO) are both bearish with the AO demonstrating decreasing sell pressure in the immediate short-term.
Long-term trend: Cautiously bullish
Bulls need to mount a serious comeback in the next couple of weeks with a move above $0.15 (former supports) and $0.1670 (prior highs) in order to reverse the 24-day channel downtrend.
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Bitcoin's Mayer Multiple or the ratio of bitcoin's price to the 200-day average of price fell below 1 on Sept. 26 and has remained below parity ever since.
As of writing, the Mayer Multiple stands at 0.95.
A below-1 reading indicates the cryptocurrecy is trading below the 200-day MA – a barometer of long-term trend – while an above-1 reading indicates the price is trading above the 200-day MA.
The cryptocurrency is said to be in a bull market if its charting higher price lows above the 200-day MA. On the other hand, lower price highs below the 200-day MA represents bear market.
Essentially, a high Mayer multiple implies bull market while a low ratio indicates the bears are in control.
That said, if the Mayer Multiple is too high, then it could be considered a sign of overbought conditions and an advanced warning of sudden price pullback. For instance, the ratio rose well above 3.5 during the height of the bull market in December 2017 following which prices crashed to $6,000 in early February 2018.
On similar lines, a very low ratio often implies oversold conditions.
Currently, the ratio stands just below 1.00, as noted earlier, meaning the market is bearish. |
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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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Mayer Multiple