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Bitcoin Consolidates Around $8,200
BTC: Price: $8,200 | MCAP: $147.41 Billion | 24-Hr Volume: $14.23 Billion
Short-term trend: Bullish
Federal Reserve's President Jerome Powell on Tuesday said that the central will soon begin expanding its balance sheet in order to ensure the smooth functioning of the “overnight” or short-term lending markets.
The markets believe the Fed’s latest operation is nothing but round four of quantitative easing (QE). The inflation-boosting measure is seen as a long-term positive development for bitcoin by crypto market experts.
However, it hasn’t yet buoyed the cryptocurrency’s price, which is consolidating around $8,200.
Notably, the cryptocurrency has spent last 24 hours trading the narrow range of $8,100-$8,300.
Even so, the path of least resistance remains to the higher side, as prices are holding well above $7,763, keeping Monday's bullish outside bar candlestick pattern valid.
The daily chart indicators have also turned bullish over the last two days. Prices could rise to $8,600 in the short-term.
Long-term trend: Bearish
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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0x Hits A Wall
ZRX: Price: $0.22 | MCAP: $124.08 million | 24-Hr Volume: $49.3 million
Short-term trend: Pullback
0x is currently up 15.36 percent on the day and is the top performing crypto at CoinMarketCap after one of its single biggest daily gains since Sept. 19.
That move has been met with stiff resistance along the 200-daily moving average (MA), which provides a barometer on market health and increases the likelihood of a pullback from that region should it faily to cross and close out above.
An overbought daily RSI adds credence for a period of profit taking/pullback from a large run up seen from Oct. 7-Oct. 8.
Long-term trend: Bull potential
0x is yet to take the higher high range from the initial breakout on Sept. 17 but has also opened up greater possibility for growth in its value as yesterday's full body candle close was the highest in over 19 days.
However the Awesome Oscillator (AO) signals potential for a deeper retracement should prices fail to hold above $0.24 in coming weeks.
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| Look To The Cosmos
ATOM: Price: $2.86 | MCAP: $548.8 million | 24-Hr Volume: $135.2 million
Short-term trend: Cautiously bullish
Despite having fallen 4.46 percent over a 24-hour period, ATOM has provided its first bull signal on the Awesome Oscillator (AO) with a green histogram bar moving above the neutral 0 line.
The daily RSI is trending bullish above 50, while yesterday's (Oct. 8) previous candle demonstrates a potential reversal to recent pushes made by buyers on Sept. 30 and Oct. 7.
Be mindful of the momentum and monitor to see if volume stacks up for a potential retest at 2.79 before attempting to break higher on cautiously bullish technicals.
Long-term trend: Bearish
ATOM's lower peak highs and resistance taken from Sept. 16-17 provides a barrier between $3.43 and $3.60 in which buyers must push beyond in order to restore investor confidence of that prior resistance zone.
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The bitcoin bull market is still alive and kicking despite the fact that prices are currently down 40 percent from the high of $13,880 registered in June.
The cryptocurrency fell by more than 20 percent in September to levels below $8,000, weakening the long-term bullish technical case.
That sell-off, however, was primarily triggered due to selling by weak hands – short-term speculators – who had acquired bitcoin at prices between $10,000 to $12,000, as per Coinmetrics’ State of Network: Issue 19.
More importantly, 63 percent of HODLers still have unrealized gains while 37 percent have unrealized losses.
There are few Bitcoins with a cost basis above $13,000 as these holders have long since capitulated at lower prices and the remaining have likely converted into long-term, jaded holders, analysis of on-chain activity indicates.
What’s more, previous market cycles indicate that drawdowns of 30 percent or more is a norm in the bitcoin market.
All-in-all, it's still too early to call an end of the bull market, which began in April with a high-volume move above $5,000. |
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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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QE 4