- Bitcoin (BTC) encountered massive resistance as it tried to break $7,300.
- At the same time, its trade volume has been dropping together with its dominance in the crypto markets.
In our analysis of Bitcoin (BTC) a few hours ago, we were cautiously optimistic that the King of Crypto was on a slow and tense journey towards $8,000. We also identified a few support zones that include $7,050, $6,900, $6,800 and $6,600.
Why $7,050 is the Level to Watch During Bitcoin’s Weekly Close
Further analyzing the aforementioned support zones, we realize that the $7,050 zone is the last area of defense for Bitcoin before it drops back to familiar levels below $7,000. Therefore, if this level breaks in the next few hours, we will most likely retest $6,900 and possibly back to our strongest support thus far of $6,600.
Revisiting our favorite 6-hour BTC/USDT we begin to spot a few areas of weakness for the King of Crypto that might cause some excitement for the Bears.
To begin with, Bitcoin’s move to claim $7,300 was rejected at the same zone which was a resistance. Its current price of $7,126 is still above the 50 (white), 100 (yellow) and 200 (green) moving averages. These MAs are acting as short term support for Bitcoin, but they are also giving a picture of exhaustion for BTC.
Further checking the trade volume, it has reduced drastically in the last few days. This is a tell-tale sign of a possible move down.
The MFI has a value of 80 thus indicating an overbought situation. This is further confirmed by the MACD about to cross in a bearish manner above the baseline.
Bitcoin Dominance Continues to Drop Slowly
In our April 17th Ethereum price analysis, we had identified that the BTC dominance had dropped by 1% thus providing some level of confidence for ETH to rise in the crypto markets. Rechecking Coinmarketcap, we find that the BTC’s dominance now stands at 63.5% compared to our previous level around 64%. This slow decline in market dominance could provide the perfect environment for a mini-alt season.
As the third week of April 2020 comes to a close, $7,050 will be the level to watch for Bitcoin (BTC). This area provides the last line of support for the King of Crypto before falling back to familiar territory below $7,000. Also to note, is that the Bitcoin trade volume has continued to drop thus providing the case for a bearish weekly close for BTC. Additionally, Bitcoin’s dominance has continued to drop slowly further pointing to a possibility of Ethereum doing well in the crypto markets along with alt-coins.
As with all T.A opinion, the reader is advised to use adequate stop losses to protect their leveraged positions on the various cryptocurrency exchanges.
(Feature image courtesy of Kid Circus on Unsplash.com.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Bitcoin SV long-term Price Analysis: 25 September
It is an interesting period in the digital asset industry. While prices were indicating a series of pullbacks, many suggested that the bottom is near or possibly nearing with time. At the moment, Bitcoin continues to hold fort around the $10,000 range, bouncing consistently from the $10,200 mark.
With the king coin holding its grounds, altcoins around are being resistant to more corrections as well. After declining to $144 on 21st September, BSV is up to $155 at the moment. With uncertainty still looming large, we analyzed possible outcomes for the Bitcoin forked asset.
Bitcoin SV 4-hour chart
The massive drop down to $144 came at the back of a symmetrical triangle for Bitcoin SV. With high bearish momentum tracking the pattern, it was somewhat obvious that the asset declined in the charts.
At the time of writing, the bearish pressure from the 50-Moving Average was also dominant, hence a re-test at $165 might take a bit of time. Coincidentally, BSV‘s price is oscillating within another bearish pattern at the moment, with a rising wedge taking the proceedings.
At the moment, if the bears take charge of the moment, a strong correction could take the price to the last support at $136, while a normal retracement can be expected till $150 before another rally upwards. Relative Strength Index or RSI was observed to exhibit a decline which meant selling pressure was slowly building up again.
Bitcoin SV 1-day chart
However, the 1-day chart gave more clarity on the current price range. Since the start of April 2020, Bitcoin SV‘s value has almost used the $150-$160 range as a medium to consolidate before catapulting above the $200 mark. It is interesting at the moment because after reaching $144 only 3 days back, the asset back in the range now.
Now, optimistically the price might rocket out again from here, but it is important to remember that during the previous two proceedings, the market was riding on a high. At the moment, an air of transition enveloped the industry. Stochastic RSI suggested another bearish crossover is approaching. With the blue line currently reaching the overbought zone, a direct crossover at the top would lead to another pullback.
Right now, another re-test till $150 seems definite but it will be interesting to see if this range can be held yet again.
LINK Increases by More Than 40% in a Day: Relief Rally or New Upward Move?
The ChainLink (LINK) price increased by 41% on Sept. 24. While the price has broken out from a bullish pattern, the current movement is still more likely to be a correction than the beginning of a new upward movement. LINK Bounces at Support The LINK price has been decreasing alongside a descending resistance line since […]
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The ChainLink (LINK) price increased by 41% on Sept. 24. While the price has broken out from a bullish pattern, the current movement is still more likely to be a correction than the beginning of a new upward movement.
LINK Bounces at Support
The LINK price has been decreasing alongside a descending resistance line since it reached a high of $20.71 on Aug. 17. The decrease has been significant and continued until the price reached a low of $7.28 on Sept. 23. This movement validated the $7.50 area as support.
The $7.50 area is also strengthened by the presence of the 200-day moving average (MA). Once the price reached this area, it created a bullish engulfing candlestick, increasing all the way to $10.40 in a single day. The increase from low to high measured 41%.
Currently, the price is attempting to move above the minor $10.40 resistance area and possibly the descending resistance line drawn from the highs.
Cryptocurrency trader @PostyXBT tweeted out a LINK chart, stating that the price is approaching the 200-day moving average (MA) support. As seen in the chart above, the price initiated a very strong bounce once it reached the MA.
Reversal or Relief?
The six-hour chart shows that the price has broken out from a descending resistance line. The breakout was preceded by considerable bullish divergence in the RSI & MACD, increasing its validity.
However, the daily chart does not confirm that the trend is bullish. The RSI is below 50, and the Stochastic Oscillator has not made a bullish cross. The MACD has just begun to increase, having created one higher momentum bar.
Until the price breaks out from the longer-term resistance line or a bullish cross transpires in the Stochastic Oscillator, we cannot state that the trend is bullish.
Since the aforementioned Aug. 17 high, the LINK price has completed a five-wave bearish formation (shown in black below). Since waves 1 & 4 overlap, it is likely that the movement was a leading diagonal, also supported by the wedge-like shape.
Furthermore, volume decreased during the wave-5 bottom and picked up during the breakout, customary in such movements.
In the longer-term, it is possible that this entire decrease has been the A wave (orange) of a longer-term A-B-C correction.
If so, the price could increase all the way to the 0.618 Fib level at $15.26 before resuming its downward movement.
To conclude, while the LINK price is expected to increase in the short/medium-term, it is more likely that the price is still engulfed in a longer-term correction.
Ripple price prediction: XRP price recovers after dropping over 5 percent
XRP price recovers from 5 percent plunge below $0.23 support Ripple (XRP) price movements over the last 24 hours appear bullish Bulls seem to have appeared XRP price currently trading at $0.2407 at press time Ripple price prediction: today’s price overview The Ripple price opened the day at $0.2327, which is also its lowest price […]
- XRP price recovers from 5 percent plunge below $0.23 support
- Ripple (XRP) price movements over the last 24 hours appear bullish
- Bulls seem to have appeared
- XRP price currently trading at $0.2407 at press time
Ripple price prediction: today’s price overview
The Ripple price opened the day at $0.2327, which is also its lowest price as the bull’s kick-started a bullish uptrend. The price has since soared up and reached a peak price of $0.2407, where it is currently trading at. After closing the previous day in a bearish candle, XRP price is presently depicting signs of bullishness.
Ripple price 24-hour movement
Since hitting rock bottom at $0.2215 the previous day and losing about 5.3 percent in 7 days, XRP/USD has since recovered by over 5 percent and bounced back above the support near $0.23. Ripple XRP appears to be attempting to create a support base above this point, but the bears are yet to give up still.to give in.
The movements of the past $24 hours moved the XRP/USD pair from $0.23 to a daily high of $0.2407, representing $0.0107 gains. The above chart depicts bullish signs, and XRP price might be kick-starting a new bullish trend. Given the price of XRP is tied to BTC price, the recent bullish signals characterized by King crypto might have impacted Ripple’s price.
XRP/USD September chart
Ripple XRP price has been on a bearish trajectory for the past 30 days, losing more than 10 percent of its value. In the past 7 before yesterday’s bounce, XRP lost about 5.5 percent. However, XRP seems to have formed support at $0.23 and ready to test the resistance at $0.24 again after failing yesterday.
XRP 1-hour chart
We can see the bullish momentum being created after a long journey in a bear market in the above chart. The XRP/USD seems to be testing the selling pressure at $0.24 from where the price may move towards its early September high.
Ripple price prediction: Where is XRP heading?
One week ago, Ripple was in a very different situation compared to today. The bears were too strong for the bulls pushing the price more than 5 percent under. However, it now seems the bulls have enough power to push through after defending the $0.227 support.
If the XRP bulls contain the selling pressure at $0.24, Ripple (XRP) price is destined to test $0.25. From here, Ripple targets its monthly-high price of $0.29 and above.
On the other hand, failing to clear the resistance at $0.24 might be fatal. The price may fall towards the $0.22 critical support from where a bear market prevails. The next crucial support could be near $0.21, where buyers might emerge.
Meanwhile, Ripple’s CEO, Chris Larsen, recently transferred 499,999,979 XRP tokens worth $115,847,49 at the time, triggering a whale alert. Has this massive transfer affected Ripple price? The amount represents about 10 percent of the entire Ripple XRP market capitalization. It is also worth noting that having been surpassed by Tether USDT, XRP is yet to claim its old position at number 3. Now that it has broken out of a multi-days and year bearish trend, what’s in store for Ripple XRP next?
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