Since July 13, digital currency prices have dropped in value significantly, but most coins have since experienced some recovery. While many crypto supporters are optimistic on where the markets are headed, traders and analysts have noticed a bullish-to-be
Market Outlook: Crypto Bulls Rally After Bearish Downturn
The total cryptomarket cap started a decent recovery and broke the key $260.0B resistance.
Bitcoin price rallied around 10% and broke the $10,000 and $10,500 resistance levels.
EOS price recovered steadily and even broke the $4.00 resistance area.
BCH price is up more than 5% and it recently cleared the $300 resistance.
Tron (TRX) price gained around 8% and surpassed the $0.0250 resistance level.
Cardano (ADA) price is still struggling below the $0.0600 level.
Bitcoin price jumped more than $1,000 and the crypto market cap is up more than 10%. Ethereum (ETH), EOS, Tron (TRX), BCH, ripple, ADA and BNB are likely to continue higher.
Bitcoin Cash Price Analysis
After this past week’s significant decline, bitcoin cash price found support near the $270 level against the US Dollar. The BCH/USD pair started a decent upward move and broke the key $290 and $300 resistance levels. It is currently up around 5% and is trading near the $310 level.
If there are more gains, the price may perhaps test the $320 resistance level. On the downside, the $305 and $300 levels are decent supports, below which the price may move back in a bearish zone.
EOS, Tron (TRX) and ADA Price Analysis
EOS price is slowly recovering and it recently broke the $3.900 and $4.000 resistance levels. However, there is a strong resistance forming near the $4.200 level, where the bulls might face a tough challenge in the near term. A successful break above $4.200 could push the price towards the $4.500 level.
Tron price is gaining momentum and it gained around 20% in the past three days. TRX price broke the $0.0240 and $0.0250 resistance levels and it seems like it could continue to rise. The next major hurdle for buyers is near the $0.0265 level.
Cardano price remains in a bearish zone and it recently formed a decent support near the $0.0550 level. However, ADA price is facing a crucial resistance near $0.0600, above which the price could recover higher in the coming sessions. The next main resistance is near the $0.0650 level.
Looking at the total cryptocurrency market cap 4-hours chart, there was a steady rise from the $230.0B support area. The market cap surpassed the key $250.0B and $260.0B resistance levels. Moreover, there was a break above a major bearish trend line with resistance at $260.0B on the same chart. At the moment, the market cap is facing resistance near the $280.0B level and it might correct lower in the near term. However, the broken resistance near $260.0B may perhaps act as a key support zone. Overall, dips remain supported in bitcoin, ETH, XRP, TRX, ADA, bitcoin cash, litecoin, EOS, stellar, IOTA, ICX, WAN, and other altcoins.
Since July 13, digital currency prices have dropped in value significantly, but most coins have since experienced some recovery. While many crypto supporters are optimistic on where the markets are headed, traders and analysts have noticed a bullish-to-bearish trend. BTC and a slew of other currencies spiked more than 10% at 11 a.m. EST on Thursday, however, indicating the bull market is still in play.
On Wednesday, cryptocurrency bulls were seemingly exhausted and bears had temporarily taken the reins, clawing back prices over the last week. Currently, the overall market capitalization of the entire cryptoconomy is $281 billion with around $83 billion worth of 24-hour global trade volume. The leading digital asset by market valuation, bitcoin core (BTC), is down over 8% over the last seven days. One BTC is trading for $10,622 after touching a low of $9,165 on Wednesday. BTC is followed by the second largest market cap held by ethereum (ETH) which has dipped by 17% this past week.
ETH is swapping for $225 per coin at press time as the cryptocurrency recovered 5.2% of its losses over the course of the earlier morning trading sessions. Following ethereum, ripple (XRP) is trading for $0.32 per XRP, down by 2.3%. Litecoin (LTC) is swapping for $101 per coin and down 1% over the last seven days. Bitcoin cash (BCH) is below litecoin’s market cap in fifth position as each coin is trading for $318, down 7% for the week.
Analyst Insists Libra Scrutiny Pushed the Price of BTC Down
This week has been interesting as U.S. congressional leaders discussed cryptocurrencies at great length to attempt to understand and regulate Facebook’s upcoming Libra coin. Public blockchains like BTC were described by politicians and cryptocurrency advocates over the last two days. Financial columnist and market analyst Naeem Aslam thinks the Facebook Libra investigations and politicians probing BTC pushed crypto prices lower. Most of the questioning and debate in Congress this week revolved around the creation of Libra, the cryptocurrency Facebook plans to launch in 2020.
For instance, many Democrat representatives including Alexandria Ocasio-Cortez seem to be against Facebook’s coin concept during the hearings. The New York Democrat representative asked Libra CEO David Marcus who backs the financial underpinnings of the planned Facebook currency. “So we are discussing a currency controlled by an undemocratically selected coalition of largely massive corporations,” Ocasio-Cortez said to Marcus, unimpressed with his testimony. Financial Services Committee representative Patrick McHenry (R-N.C.) commended Satoshi Nakamoto’s creation, meanwhile. However, Aslam writes this week that the congressional hearing and “the scrutiny of Facebook’s cryptocurrency has hit bitcoin’s price.” Sharing his opinion on July 17, the analyst stated:
Speaking purely from a price action perspective, the Bitcoin price declined as much as 8.9 percent during the hearing and for the week it is down nearly 16 percent. The price has found its support near the 50-day moving average which is trading at $9,311. If the price falls below the 50-day moving average, it is likely that the price may continue to move lower and find support around the area of $7,418. The 242-day moving, which has an impressive track record, is something that I am looking at closely. It is trading at $6,983 and the price must stay above this line in order for the bulls to keep their hopes alive.
The Dotcom Era
Ceteris Paribus from the crypto analytics firm Messari believes the current BTC market cycle is very similar to Amazon stock during the dotcom bubble. “Not all bubbles are created equal — The latest BTC cycle mirrors Amazon during the dot-com bubble, but the recovery has been much more swift — Even with the recent sell-off, bitcoin is 54% down from its high, vs. the 85% Amazon was trading at over a similar timeframe,” Paribus tweeted on July 17. “Why is this relevant? While different assets, they both traded on pure speculation — Bubbles follow similar patterns, but the quick BTC breakout has been extremely bullish. Only natural to see a bit of a pullback here — Still much further ahead than most people imagined in December.”
According to trader and analyst Filb Filb, miners will defend the price of BTC if it sinks to a certain point. “I have seen a lot of hysterical calls for bitcoin to find new lows and want to revisit a logical economics-based approach which helped me call the 2018 bottom to near perfection and why I do not believe bitcoin will find new lows,” the trader wrote on Wednesday.
By using certain tactics, miners will always maximize their rate of returns. “As Satoshi said himself rightly pointed out that commodity costs are likely to gravitate to production cost. Why? Because miners will sell into demand where revenue per unit > MC. Likewise, collectively they are disincentivized to sell when revenuedeclared. The popular trader added:
We have also seen the pre halving hype bottom out at 2x the cycle bottom historically — Go look for yourselves. Coincidence? I think not.
Money Managers Scour Forums and Social Media for Cryptocurrency Price Clues
According to a Reuters interview with Bin Ren, CEO of Elwood Asset Management, hedge funds and money managers are using algorithms capable of identifying cryptocurrency price clues throughout forums and social media platforms like Twitter. Reuters reports that the use of these algorithms has been growing fervently among traditional market managers. “It’s an arms race for money managers — Very few players are able to implement and deliver it, but I believe it is highly profitable,” Ren told the news outlet. Moreover, Bitspread, the digital asset management service based in London and Singapore, also uses social media algorithm techniques to profit.
“It’s a matter of gathering all the info, trying to understand who is trading where, what kind of liquidation can appear,” Bitspread CEO Cedric Jeanson said. “It’s a strategy that makes sense.”
Despite the Possibility of BTC Prices Declining Below $7K, Market Parabola Is Still in Play
Well known Twitter cryptocurrency analyst Mr. Anderson detailed that BTC has very strong parabolic trend lines and the lowest band is under $7K. Essentially this means that despite BTC’s current price decline, the bull run could still be in play. For instance, despite the 10-25% dips for most digital assets within the cryptoconomy, the majority are still way up in comparison to the December 2018 lows.
Any of the parabolic trend lines could act as a support for BTC but calling large ones is very difficult according to Mr. Anderson. “BTC Parabolic Curve: Calling the end of a large Parabolic Curve is NOT EASY — It seems obvious and that is why it is hard. We already have a couple of fairly logical para-trend lines that we had to cancel and we have a couple more that may end up being canceled as well,” Anderson explained on Twitter in reference to his parabolic trend line chart.
Worldwide Economic Fears, Cut Interest Rates and a No-Deal Brexit
Overall, digital asset markets have still gained significant value in the midst of worldwide economic fears. However, retail sales in June were better than expected according to economists and the jump in spending has given them hope. However, in the U.S. some speculators believe that the Federal Reserve might cut interest rates when members of the Fed convene on July 30-31. According to reports, the U.S. Treasury has already priced in the rate cuts in order to bolster loans and lending rates for mortgages.
Moreover, the possibility of a no-deal Brexit is being debated across the U.K. and EU. Economists fear that the U.K. will finally leave the EU monetary system, but waiting for Prime Minister Theresa May’s successor has paused an impending Brexit. With economists watching the global economy closely and politicians scrutinizing digital currencies, how all of this madness will affect cryptocurrency markets going forward is anyone’s guess. Today’s price breakout at 11 a.m, however, suggests that the crypto bulls are still in the game.
Where do you see the price of BCH, BTC and the cryptoconomy going from here? Let us know what you think in the comments below.
Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Commenting on the report, Bobby Ong, co-founder of CoinGecko reiterated that:
“Crypto summer is undeniably upon us as we see the industry enter the mainstream consciousness again, in part due to Facebook’s recent announcement of Libra. The release of the CoinGecko Trust Score during Consensus New York has been met with a positive response which emboldens our resolve to power our users with richer data to make better-informed decisions.”
The Second Quarter of 2019 saw a massive 125 percent increase in the overall crypto market capitalization as crypto winter gave way to the bullish summer.
Notably, king bitcoin led the gainers’ table with 165 percent from $4,103 to $10,888, with a market dominance of 66 percent at press time.
The crypto trading platforms and exchanges have also grown significantly. A total of 302 were added in the last 18 months throughout CoinGecko’s 5-year history.
Hackers have also improved their game, with top exchanges like Binance also getting hit by the rogue actors. Due to an increase in demand for more secure trading venues, decentralized exchanges (DEX) have started gaining significant traction.
CoinGecko’s Trust Score Explained
The Trust Score algorithm was built to present CoinGecko users with normalized, accurate trading volume data based on exchange traffic statistics from Similar Web and in-depth order book data.
CoinGecko’s Trust Score currently comprises of two divisions: Normalized Volume and Trading Tickers.
(1) Normalized Volume according to their Web Traffic statistics via Similar Web.
(2) Trading Tickers takes into account order book spread, depth and more to determine their liquidity.
Lightning Network Gaining Adoption:
The report also talks about the development of the Lightning Network, Bitcoin’s layer-2 scaling solution. The Lightning Network’s overall capacity grew by 87 percent to over 1,100 BTC, while its node count doubled to 4,576 nodes at the end of Q2 2019.
CoinGecko’s primary objective is to provide a 360-degree overview of the crypto markets, providing users with the right information they need to succeed in the super volatile world of cryptocurrencies.
At the time of press, among the top cryptocurrencies, Litecoin is leading the way with a comfortable 17% gain. Tron comes second with a 14% gain while Ethereum, XRP, and EOS all enjoy a more than 5% gain.
Bitcoin is enjoying a moderate 5% gain in the last 24 hours and seems to have lost some of its dominance. Bitcoin’s dominance stands at 65.3% at the time of press. If altcoins continue performing this well and surpassing Bitcoin, we can expect dominance to continue dropping and price movement to continue at a slow pace.
Key Supports Defended
Earlier yesterday, several cryptocurrencies dropped below key support positions. For Ethereum, this was a slip below the $200 position, while for XRP, this was below $0.30.
This could have easily seen the market incur far greater losses with panic triggering a sell-off. Luckily, the bulls made a swift move and took back the market and today they are extending this and trying to position prices at better ranges.
Bitcoin, which had slipped into the lows of $9,200 was also at risk of slipping below $9K which many will agree would be dangerous territory that could see prices further hit $8,500. Bitcoin’s bounce has seen it climb to near $10K but there is resistance around this position.
Analyst Not Entirely Convinced
While the recent bounce has been welcomed by many, some analysts remain unconvinced. Peter Brandt, a popular analyst, has recently stated that he forecasts an 80% correction. With this not achieved during the dip, the analyst believes that prices could still pull further down. Technical analyst Josh Rager has also had his say following yesterday’s bounce, he stated:
“Bitcoin had a nice bounce that tapped the previous 4hr chart low and I honestly think it needs to push up more before continuation down,”