The past few weeks have seen Bitcoin tread on thin ice multiple times: every time the cryptocurrency rallied to $10,000, it snapped lower, often violently.
This week’s attempt at the crucial $10,000 resistance was no exception: after temporarily trading above the level for all of 20 minutes, the asset began a precipitous decline.
Just 24 hours after $10,000 was tapped, Bitcoin was trading at $9,050 — almost 10% below the high.
Yet a top analyst says that as long as BTC doesn’t move much lower from here, the chances of “bullish continuation” on a medium-term time frame are rather high.
Bitcoin Must Hold This Crucial Level to Cement Uptrend: Analyst
A cryptocurrency trader, part of the team at industry research firm MarketsScience, recently shared the chart below.
Acknowledging the recent drop into the low-$9,000s, he wrote that Bitcoin is currently trading between the monthly and weekly open prices, stuck in a tight range. TradingView.com Bitcoin chart annotated by BitDealer (@Bitdealer_ on Twitter)
Although he didn’t have anything to say about the significance of that, he shared that Bitcoin’s ability to hold $8,700 for multiple weeks on end makes it “look like [BTC will see] bullish continuation.”
Should it fail to hold that level, he explained, the “bullish continuation” thesis will become “invalidated.”
Other analysts agree that Bitcoin is currently in an uptrend.
As reported by Bitcoinist previously, a top trader, who predicted that Bitcoin would bottom 2018’s bear market at $3,200 months before it did, identify four signs BTC is still bullish: BTC is trading above the downtrend that formed during 2019’s $14,000 high.
Volume is contracting within a range, suggesting an imminent breakout.
The recent price action looks like the middle of 2019’s rally.
BTC has printed a series of higher lows and higher highs. Related Reading: Bitcoin Bull Case Strengthens as U.S. National Debt Rockets to $26 Trillion
Losing $8,700 Could Lead to 30% Drop
The importance of $8,700 cannot be understated, the trader who shared the first chart seen above later explained.
He shared the chart below illustrating that under $8,700, there is likely a lack of liquidity that will result in a rapid drop:
“If price was to close below 8700, this gap would likely fill in a high volatility quick move,” he wrote, pointing to the low-$6,000s as a likely place at which said “quick move” could bottom. TradingView.com BTC chart annotated by BitDealer (@Bitdealer_ on Twitter)
Losing $8,700 would also bring Bitcoin under a block of buy orders on Bitfinex.
A top trader recently shared a chart of Bitcoin’s recent price action on Bitfinex and the Order Book Dominance Bands indicator. The OB Dominance Bands is effectively a heatmap showing where (at what price) there is either buy-side or sell-side demand for BTC — the thicker the bands, the more demand there is.
The chart shows that there is a clear confluence of demand for Bitcoin between $8,600 to $9,000.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Analyst: If Bitcoin Holds $8,700, the Chances of “Bullish Continuation” Are High Source: https://bitcoinist.com/analyst-bitcoin-holds-8700-chances-bullish-continuation-high/?utm_source=rss&utm_medium=rss&utm_campaign=analyst-bitcoin-holds-8700-chances-bullish-continuation-high
Tomochain’s (TOMO) Rejection Casts Doubt On Bullish Prospects
While the Tomochain (TOMO) price is resting above several crucial support levels, technical indicators and the wave count suggests that the price has begun to correct. TOMO Holds on to Support The TOMO price reached a high of $1.55 on Aug 13, but dropped significantly shortly afterward, culminating with a low of $0.52 on Sept […]
The post Tomochain’s (TOMO) Rejection Casts Doubt On Bullish Prospects appeared first on BeInCrypto.
While the Tomochain (TOMO) price is resting above several crucial support levels, technical indicators and the wave count suggests that the price has begun to correct.
TOMO Holds on to Support
The TOMO price reached a high of $1.55 on Aug 13, but dropped significantly shortly afterward, culminating with a low of $0.52 on Sept 5.
The price then bounced and reached a high of $1.20 on Sept 30 but dropped sharply once more. This move served to validate the $1.15 area as resistance.
However, the price is still trading above an ascending support line that it has been following since reaching a bottom on March 13, and is trading above the $0.63 support area. As long as it does so, the possibility of continuation remains valid.
Despite the considerable support below the current price, technical indicators on the daily time-frame have turned bearish.
- The MACD has crossed back into negative territory.
- The RSI is trading below 50.
- The Stochastic Oscillator has made a bearish cross.
Therefore, any price rallies are considered corrective, while the main trend is considered bearish.
Cryptocurrency trader @tradingtank outlined a TOMO chart, stating that as long as the price manages to hold on above the $0.75 support, he expects an upward move towards $0.959.
However, since the tweet, the price has fallen below both the $0.75 and $0.70 support areas. After attempting to initiate an upward move, TOMO was rejected by the $0.70 area.
Technical indicators show that the move has lost strength, and a fall towards the range low at $0.65 is likely.
Since the previous Aug 13 high, the TOMO price seems to have begun a complex W-X-Y corrective structure (shown in black below), currently trading in wave Y.
Since the W wave is created by three subdivisions and X did not retrace more than the 0.618 Fib level, the correction is a W-X-Y instead of an A-B-C.
The Y wave is comprised of another A-B-C correction (orange), in which the price is still in the A wave. We can outline a bearish impulse (blue) for the A wave, which gains more validity due to a lack of overlap (red solid line).
Therefore, the price should decline to $0.50 before beginning a corrective move up. Due to Elliott wave rules, more specifically the fact that wave 3 cannot be the shortest, a fall that would take the price lower than $0.50 would invalidate this particular wave count.
For BeinCrypto’s Bitcoin analysis, click here.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
Ethereum’s Dominance Over the Market May Soon Explode Higher; Here’s Why
Ethereum’s price is moving higher today alongside that of Bitcoin and the rest of the crypto market.
This latest push higher has allowed ETH to re-surmount its crucial $380 level – which is the price that has determined several trends throughout the past few months.
Bulls must now move to build support at this level, as another break below it could have some lasting damage on the cryptocurrency’s technical outlook.
Traders widely believe that the coming few days and weeks will alter Ethereum’s macro outlook, as the confluence of it having a bullish market structure, mixed with positive fundamental developments like the phase 0 rollout of ETH 2.0, could provide bulls with fuel.
One trader is now noting that he is anticipating these bullish factors to give Ethereum’s market dominance a serious boost.
While it is only currently sitting around 12%, he is eying a move past 17% in the coming few weeks.
If this dominance climb does take place, it will suggest that ETH has seriously outperformed both Bitcoin and its peers.
This potential dominance rise could also reignite “altseason” and provide smaller altcoins with massive momentum.
Ethereum Sees Bullish Upswing as Buyers Reclaim $380
At the time of writing, Ethereum is trading up roughly 1% at its current price of $382.
This marks a notable surge from its recent lows of $362 set just a few days ago, with the strong base of support here acting as a launchpad for its recent push higher.
It is imperative that bulls build support at $380 and defend this level, as an ability to do so could further bolster their current strength.
The ongoing price rise has come about due to that seen by Bitcoin. The benchmark cryptocurrency is in the process of pushing up towards the upper-$11,000 region.
Analyst: Sharp Rise in ETH Dominance Likely
He is watching for it to climb from roughly 12% to 17%, which would indicate that its price significantly outperforms that of Bitcoin and other altcoins in the near-term.
This target can be seen on the below chart that he recently put forth:
Image Courtesy of Pentoshi. Source: ETHUSD Dominance on TradingView.
The coming few days should provide some insight into this possibility, as the phase 0 rollout of ETH 2.0 could be a catalyst for upside.
Featured image from Unsplash. Charts from TradingView.
Market Watch: Will The New Week Finally Move Bitcoin Price?
Bitcoin has continued to overcome the recent adverse news and jumped to an intraday high of $11,550 a few hours ago. Ethereum has also increased in value to about $375, while most other large-cap altcoins remain relatively still.
Bitcoin Sees A $11,550 High
As reported yesterday, the weekend was fairly bullish for the cryptocurrency market. Despite reports indicating that the popular digital asset exchange OKEx has suspended withdrawals as its founder was purportedly taken away by the policy, Bitcoin stood firm at $11,350.
In the past 24 hours, the primary cryptocurrency has continued its way upwards. After gradually increasing to about $11,400, BTC spiked to a 3-day high of $11,550 (on Binance). This was the highest level since before the OKEx news broke out on Friday.
However, the bulls couldn’t keep the run going, and BTC dipped to $11,410 in the following hours. Nevertheless, the asset has reclaimed some ground and currently hovers around $11,440.
The latest price increase could be related to the developments with US stock futures. The futures contracts of the Dow Jones Industrial Average and the S&P 500 jumped by 0.5%, while the Nasdaq 100 futures rose by 0.7%.
Stability Among Large-cap Altcoins
After breaking above $370 yesterday, Ethereum has kept its momentum. Another $1.5% increase for ETH has pushed the second-largest cryptocurrency to about $375.
In contrast, Binance Coin has dropped by 2% despite the recent massive burn. As a result, BNB has dipped below $30.
The remaining top 10 representatives have displayed an untypical lack of volatility. Ripple (-0.5%), Bitcoin Cash (0.2%), Polkadot (0.4%), Chainlink (0.1%), and Litecoin (-0.2%) have essentially kept their value at the same levels as yesterday.
Filecoin is the most substantial loser for a few consecutive days now. FIL’s recent 22% dump has taken the asset to $31. As CryptoPotato wrote yesterday, FIL miners have it the worst.
Crypto.com’s native cryptocurrency has also lost a significant chunk of value. CRO’s 11% price slump means that it trades below $0.12.
The most impressive gains are evident from Aave and Uma. LEND has jumped by 20% to $0.49, while UMA (17%) trades at $8.75.
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Cryptocurrency charts by TradingView.
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