The world’s second largest crypto asset has taken a beating recently. Not only has Ethereum price collapsed below $200 but it is constantly hounded by the majority of the crypto community which remain blinded by the performance of its big brother.Ethereum Remains AsleepIn terms of price action, there are not many positive things to say about ETH at the moment. A steep downtrend lasting over two months has resulted in the formation of a ‘death cross’ on the daily chart indicating more pain to come. This week the 50 day moving average will fall below the 200 day which is an ominous sign for Ethereum market trends.ETH prices 1 hour – Tradingview.comBitcoin’s return to five figures has lifted ETH marginally but the meager 3 percent did not even result in reclamation of $180. At the time of writing Ethereum is consolidating at around $178 according to Tradingview.com. The asset has plunged 50 percent since its 2019 high of $360 and is still 87 percent down from its all-time high as gains continue to get eroded.This lack of buying momentum has caused the crypto community to continue to bash Ethereum but the truth is all digital assets aside from BTC are on the floor. Even this year’s two darlings, Litecoin and Binance Coin, are floundering now.Solid FundamentalsThe Ethereum network and developer team is still solid though and, as pointed out by a couple of industry observers that went against the grain of lambasting the project, it still has the most developers.“Keep an eye on Ethereum over the next few years! Out of every cryptocurrency that exists, Ethereum has the most developers! This means the possibilities for further growth are endless as their code is constantly being improved!”Keep an eye on #Ethereum over the next few years! Out of every cryptocurrency that exists, Ethereum has the most developers!This means the possibilities for further growth are endless as their code is constantly being improved! 🌙 pic.twitter.com/YCq1ItFCL1— Welson 📊 (@CryptoWelson) September 2, 2019The sentiment was echoed by Weiss Ratings which compared Ethereum to rival smart contract and dApp platforms which are also bleeding out in terms of token price.“Ethereum has 1000s of devs around the world working on dApps and other solutions on top of its blockchain.”#Ethereum has 1000s of devs around the world working on #dApps and other solutions on top of its #blockchain. #Cardano team is much smaller, but it has the advantage of a highly experienced group that insists on extremely disciplined process. #ADA #ETH #crypto #cryptocurrency— Weiss Crypto Ratings (@WeissCrypto) August 31, 2019This robust team of developers is constantly striving to improve the network in terms of performance and security. It is true that there have been delays in the Ethereum roadmap and progress has been slow but the same can be said for rival platforms such as EOS and Cardano.The scheduled Istanbul hard fork will bring in a number of improvements and is the first stage of the wider Serenity update which will dramatically change Ethereum protocols and performance. When these upgrades are finally rolled out, Ethereum will be another step towards its purpose as a decentralized global computer. This is likely to be the catalyst that will send prices back to previous levels and make Ether shine once again.Image from Shutterstock
Archives for September 2, 2019
The total crypto market cap recovered nicely and broke the key $250.0B resistance area.Bitcoin price is up more than 7% and it recently climbed above $10,400.Binance coin (BNB) price is also gaining momentum and it recently broke the $22.50 resistance.Litecoin (LTC) price is facing a few solid hurdles near the $68.00 and $70.00 levels.BCH price is up more than 5% and it is about to break the $300 resistance area.Tron (TRX) price is slowly moving towards the $0.0160 and $0.0162 resistance levels.The crypto market cap and bitcoin (BTC) are currently surging above key resistances. Ethereum (ETH), litecoin, ripple, BCH, TRX, XLM, BNB and EOS are also correcting higher.Bitcoin Cash Price AnalysisBCH price formed a decent support base near the $280 level against the US Dollar. The BCH/USD pair started a solid upward move and broke the $290 resistance level. The price is currently up more than 5%, with an immediate resistance near the $300 level.If the price surges above the $300 and $305 resistance levels, there could be more gains in the coming sessions. On the downside, the $290 level may now act as a support in the short term.Binance Coin (BNB), Litecoin (LTC) and Tron (TRX) Price AnalysisBinance coin (BNB) price is also showing a lot of positive signs and it recently climbed above the $22.00 resistance area. BNB price is up around 6% and it is trading above the $22.50 resistance level. The next key resistances are near the $23.00 and $23.20 levels.Litecoin price is still facing a lot of hurdles on the upside near the $68.00 and $70.00 level. LTC price must settle above the $70.00 level to start a decent upward move. On the downside, the main supports are near the $65.00 and $62.00 levels.Tron price is slowly moving higher and is trading above the $0.0155 level. An immediate resistance is near the $0.0160 level, above which TRX price could climb further above the $0.0162 resistance level. The main supports on the downside are near $0.0152 and $0.0150.Looking at the total cryptocurrency market cap 4-hours chart, there solid recovery initiated from the $235.0B support area. The market cap broke the $240.0B and $250.0B resistance levels to move into a positive zone. Moreover, there was a break above this week’s followed bearish trend lines near $248.0B and $252.0B. The market cap is now placed nicely above $250.0B and the 100 SMA on the same chart. Therefore, there could be more gains in bitcoin, Ethereum, EOS, litecoin, ripple, binance coin, BCH, TRX, XMR, XLM and other altcoins in the near term.
Ripple price started an upside correction above the $0.2600 resistance against the US dollar.The price is facing a strong selling interest near the main $0.2650 resistance area.Yesterday’s highlighted major bearish trend line was breached with resistance near $0.2565 on the hourly chart of the XRP/USD pair (data source from Kraken).The price is currently correcting gains and it could find support near the $0.2580 level.Ripple price is showing positive signs against the US Dollar, while bitcoin rallied 7%. XRP price must climb above the $0.2650 resistance for upside continuation.Ripple Price AnalysisIn the past three sessions, there was a strong upward move in bitcoin above $10,000 and $10,200 against the US Dollar. It helped many altcoins such as Ethereum, ETC, BNB and BCH. Moreover, there were positive signs emerged for ripple and it climbed above the $0.2580 resistance level. XRP price even broke the $0.2600 resistance and the 100 hourly simple moving average.During the rise, yesterday’s highlighted major bearish trend line was breached with resistance near $0.2565 on the hourly chart of the XRP/USD pair. The pair even broke the $0.2620 resistance area. However, the $0.2650 level acted as a strong resistance (as discussed in yesterday’s analysis). A swing high was formed near $0.2652 and the price is currently correcting gains.It broke the $0.2620 level plus the 23.6% Fib retracement level of the recent wave from the $0.2511 low to $0.2652 high. On the downside, there is a decent support forming near the $0.2580 level. Additionally, there is a connecting bullish trend line forming with support near $0.2580 on the same chart. Finally, the 50% Fib retracement level of the recent wave from the $0.2511 low to $0.2652 high is also near the $0.2580 level.Therefore, the $0.2580 level might act as a strong support in the near term. If the price fails to stay above the $0.2580 support, it could test $0.2550 and the 100 hourly SMA. Any further downsides might push the price back towards $0.2500. On the upside, the bulls need to gain momentum above the $0.2620 and $0.2650 resistance levels to push the price further higher.Looking at the chart, ripple price is correcting gains after testing the key $0.2650 resistance area. However, if the $0.2580 support holds the current decline, the price could bounce back. Conversely, the price is likely to extend its decline back towards $0.2500.Technical IndicatorsHourly MACD – The MACD for XRP/USD is currently reducing its bullish slope, with a few negative signs.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently flat near the 60 level.Major Support Levels – $0.2580, $0.2550 and $0.2500.Major Resistance Levels – $0.2620, $0.2650 and $0.2720.
This year has been all about Bitcoin. Even the handful of altcoins that have made good gains are now losing them as BTC crushed them all with its increasing market share.Bitcoin Dominance at 2 Year HighAccording to charts on Tradingview.com BTC dominance topped 72.5 percent today. Its recent move back into five figures has kept the digital asset within its range bound channel but the altcoins have not shared in similar momentum.BTC dominance – Tradingview.comThe last time Bitcoin dominance was this high was back in July 2017 when it was priced at just $2,450 with a market capitalization of $900 million. This was a spike, however, so the previous sustained period of BTC supremacy was further back in May 2017 when it fell from over 80 percent.According to analysts it could be facing resistance here though as there are a number of bearish signals appearing on the chart according to ‘alan masters’ who posted his TA on Tradingview.“We have low and decreasing volume.
Bearish divergence showing up on the MACD and RSI.
Strong resistance ahead.
Our main scenario is marked with arrows on the chart. The situation can easily change if the next resistance at 74.84 is broken with good strength and volume.”Conversely some analysts have plotted the clear uptrend, predicting further gains as the altcoins get wiped out.BTC DOMINANCE LONGER TIMEFRAME for CRYPTOCAP:BTC.D by ahmedali10 #BTC https://t.co/JChIEo3T25 pic.twitter.com/cFA93i2NGT— BitcoinAgile (@bitcoinagile) September 3, 2019Fellow trader Josh Rager shares this bullish opinion claiming that fundamentals such as the Bakkt launch could keep BTC dominance up there for a while yet.$BTC dominance monthly chart looks like the end to the bottom of a marketLooks as if BTC.D capitulated, “v” bottomed followed by a strong recoveryAt 72% now, highest since July 2017With Bakkt coming, we may not see a strong pullback in BTC market dominance anytime soon pic.twitter.com/lhaA6OWom3— Josh Rager 📈 (@Josh_Rager) September 3, 2019Last time BTC moved up into five figures and rallied to a new 2019 high, the altcoins were pulled up with it. This time around however they appear to be breaking down as Bitcoin continues to consolidate.Altcoin ApocalypseTotal crypto market capitalization is currently at $265 billion which is up $15 billion, or 6 percent on the day. This is virtually all BTC’s work though as the altcoins have not shared in similar gains.Ethereum has eked out a tiny gain of 3.5 percent in a push towards $180 which, at the time of writing, could not be sustained. XRP has barely moved but Bitcoin Cash has added 5 percent as it closes on $300 once again.Binance Coin has also grabbed 5 percent to reach $23 but it too is down substantially from recent highs. There has been a couple of percent movement for the rest of the top ten but in general the altcoins remain on the floor.There are only three double digit gainers in the entire crypto top ten at the moment and they are all low cap altcoins which will likely dump tomorrow.Image from Shutterstock
ETH price recovered nicely above the $172 and $175 resistance levels against the US Dollar.The price is currently struggling to break an important resistance area near the $180 level.There is a new key bullish trend line forming with support near $175 on the hourly chart of ETH/USD (data feed via Kraken).Bitcoin price surged more than 6% in the past few hours and broke the main $10,000 resistance.Ethereum price is testing key resistance after a decent rally versus the US Dollar, and bitcoin is up 6%. ETH price seems to be struggling near $180 and is correcting lower.Ethereum Price AnalysisYesterday, we discussed a few key resistances for ETH price near the $172 and $175 levels against the US Dollar. The price rallied recently and broke the $175 resistance level. Moreover, there was a close above the $175 level and the 100 hourly simple moving average. More importantly, bitcoin price performed really well and surged above the $10,000 and $10,200 resistance levels.However, Ethereum price ran into a crucial resistance area near $180 (as discussed in the weekly forecast). It faced a strong resistance and failed to continue higher above $180. A swing high was formed near $182 and the price is currently correcting gains. It traded below the 23.6% Fib retracement level of the recent rally from the $168 swing low to $182 high.On the downside, there are a couple of important supports near the $175 level. Additionally, there is a new key bullish trend line forming with support near $175 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent rally from the $168 swing low to $182 high is also waiting near the trend line support. Therefore, the $175 level might act as a strong support in the near term.If the price fails to stay above the $175 support, it could decline further towards the $173 level and the 100 hourly simple moving average. On the upside, the main resistance is near the $180 and $182 levels. A successful close above $180 is needed for bullish continuation. The next key resistances are near the $190 and $192 levels.Looking at the chart, Ethereum price is clearly retreating from the $180 resistance level. On the downside, the $175 level holds the key. If the price fails to bounce back from $175, it might resume its decline in the coming sessions.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 60 level.Major Support Level – $175Major Resistance Level – $180-$182
The bitcoin price increased from $9,766 to $10,500 as its dominance over altcoins and the rest of the cryptocurrency market hit 70 percent. | Source: Shutterstock
The bitcoin price increased from $9,766 to $10,500 in the past 24 hours as its dominance over altcoins and the rest of the cryptocurrency market hit 70 percent.
Prior to the minor rally, technical analysts and cryptocurrency traders including Josh Rager and Flood suggested that bitcoin could move below $9,000 to test lower levels if an important support level in $9,300 was breached.
The bitcoin price increased by more than seven percent overnight, triggering cryptocurrency market recovery. | Source: coinmarketcap.com
“Odds are you’re likely free rolling a short with a tight stop here. IF 9.3k breaks on this run volume is anemic and selling will most likely accelerate us down to 8.4k. Could possibly even wick to 8k, but I’d start scaling in long anything close to 8.4k,” Flood said on August 31.
However, following the highly anticipated weekly close of bitcoin, the dominant cryptocurrency demonstrated strength in smaller time frames, moving past a key psychological level at $10,000 with a steady increase in volume.
Flood noted that the structure in which BTC could have moved down to test $8,000 has been invalidated, indicating that the asset is in a better position to aim for an extended rally than late August.
Do altcoins stand a chance as bitcoin reclaims momentum?
In the short term, technical analysts anticipate the asset to test the wide range between $9,400 to $11,500.
We either die here or revisit the top of the lower part of the trading range.
I’m betting on the former but will happily flip to the latter if we should get a daily close back above resistance.
S: Sub 9000
R: 9900~ pic.twitter.com/vXyaqRbgpd
— DonAlt (@CryptoDonAlt) September 2, 2019
Although some major altcoins in the likes of Ethereum and Bitcoin Cash recorded gains in the range of 4 to 6 percent as bitcoin recovered, against both USD and BTC, most altcoins are down by well over 50 percent and 80 percent, respectively.
According to one cryptocurrency trader, against bitcoin, most altcoins listed on widely utilized margin trading platform BitMEX are down from 50 percent to 70 percent on average with the exception of Litecoin.
Worst Performers: TRX & XRP. The only two down in USD val. Both have continuously fallen all year.
Best Performer: LTC. The only >100% gainer other than BTC.
4 /BTC pairs have set new yearly lows within the past 5 days pic.twitter.com/ZJWiPbiDwp
— ₿itDealer (@Bitdealer_) September 2, 2019
In the next 12 months, bitcoin has several fundamental factors that could contribute to its upside movement.
For instance, the potential effect of the launch of Bakkt on the short-term price trend of BTC is anticipated by traders as it would offer the first physically settled futures contracts for BTC.
Ahead of the block reward halving in mid-2020, some miners are also said to have financed the next 12 months of operations with the intent of holding onto the BTC they mine, expecting the price to rise over the medium term.
Altcoins, however, have struggled throughout the year to secure a strong footing in a wildly volatile market, unable to demonstrate correlated movements with BTC during small rallies.
This weekend, Bitcoin price closed its second consecutive monthly red candle in a row, as bulls failed to push the price of the leading crypto asset by market cap through resistance to retest its recent local high.
A bitcoin price premium has developed in Argentina as the government imposed currency controls in a bid to support the peso. | Source: Shutterstock
Argentina’s decision to impose currency controls has had a bullish effect on bitcoin in the South American country. With demand rising for the cryptocurrency, a bitcoin price premium has subsequently developed. The premium in Argentina now ranges between tens and hundreds of dollars.
While the bitcoin price ranges between $9,887 and $9,905 on major global cryptocurrency exchanges, on Argentine crypto exchanges the price varies between $10,025 and more than $10,915.
Bitcoin Price on major global exchanges | Source: TradingView
On SatoshiTango, for instance, the Bitcoin price is $10,082.
Bitcoin price on SatoshiTango
Top buyers on peer-to-peer crypto exchange LocalBitcoins, on the other hand, are willing to pay up to 644,000 ARS ($10,915) per bitcoin. This translates to a potential bitcoin price premium of over $1,000.
Bitcoin price on LocalBitcoins (1 USD equals 59 pesos)
What’s driving the bitcoin premium?
Besides increased demand for the cryptocurrency, there is also a black-market effect on the bitcoin price in Argentina.
The currency controls which were imposed on Sunday will require exporters and individuals to get the permission of Argentina’s central bank, Banco Central de la República Argentina, before buying foreign currency. U.S. dollar purchases by individuals will be capped at $10,000. The restrictions will remain in place until year-end.
Argentina imposes capital controls https://t.co/LP93kxAN8U
— Rob Viglione (@robviglione) September 2, 2019
These restrictions have consequently made the forex black market in Argentina instantly popular among those who need to sidestep the caps. When converting the local currency to the greenback, the official rate is 59 Argentinian pesos to every U.S. dollar. On the black market though, the rate is about 64 Argentinian pesos per dollar, according to Reuters.
Why has Argentina imposed the currency controls?
The new currency controls imposed come following the Argentine government’s inability to stop the depreciation of the peso and halt heavy investment outflows.
The primary election last month saw current business-friendly President Mauricio Macri trailing Alberto Fernandez, a populist, making the latter the front-runner in the Oct. 27 general election. Since then, the peso has lost nearly 25 percent of its value.
Besides currency controls, Argentina’s double-digit inflation has also contributed to the popularity of bitcoin in the Latin American country. Currently, the inflation rate is estimated to be over 55 percent.
Crypto investors, traders, and analysts alike are mostly in agreement that Bitcoin price has switched to bull market mode ever since the crypto asset left its bear market bottom behind. But now that Bitcoin price has been correcting in recent weeks, the market has become bearish and fearful that a deeper correction will soon be in play.
Bitcoin bulls are back — that’s right. In the past few hours, the cryptocurrency has been regaining its upward momentum once again, finally showing some bullish price action following the Friday close of the CME’s August BTC futures contracts.Related Reading: 1,000 Bitcoin Buy Wall May Bolster Bull’s Attempt to Push BTC to $10,000This move higher has brought Bitcoin to $10,400, which is some 12% higher than the $9,300 bottom seen last week. While it isn’t clear how long this upswing will hold, bulls are currently in control, managing to keep BTC’s price in five digits.Bitcoin Move Correlated With Chinese Yuan… AgainWhat’s weird about this move is that it correlated with price action in the Chinese Yuan-to-U.S. Dollar pair yet again, accentuating that Bitcoin is being influenced by macroeconomic narratives.As pointed out by analyst CL in a recent tweet, the two pairs rose in tandem for the umpteenth time. Just look at the image below, which shows that the devaluations in the Yuan is literally being tracked by Bitcoin.When it happens, once or twice, it may be luck. But I don’t think this is luck anymore. pic.twitter.com/VXsgh5bECB— CL (@CL207) September 2, 2019With the trade war between the U.S. and China getting worse — tariffs continue to be added from both sides — the Yuan may continue to slide, and may bring up the price of the leading cryptocurrency with it. Crazy, right?Related Reading: Fresh Bitcoin Uptrend May Start in September, But Drop to $7,000 Could Precede Bull RunAn Expected MoveWhile this outlet and many on Twitter have been mentioning overly bearish analysis, at least two prominent analysts charted this move in Bitcoin.Filb Filb, a popular trader, wrote earlier this week that the four-hour on-balance volume (OBV) indicator was trending higher, despite a drawn-out downtrend in the price of BTC. This bullish divergence was purportedly the first on Bitcoin’s four-hour chart since the $3,350 price bottom seen in December.Also, the negative peaks in the four-hour Moving Average Convergence Divergence (MACD) have become increasingly higher, implying that bears are losing steam. He was correct — at least so far.Name the pattern $btc pic.twitter.com/IRLWSk5TZI— fil₿fil₿ (@filbfilb) September 2, 2019Then there’s Raoul Pal, a former Goldman Sachs executive, who recently wrote that now is the right time to board the Bitcoin rocket ship.I’ve never had this many bearish comments from the bitcoin community. Feels likes it’s going to go up without a lot of people fully on board… https://t.co/SjZrNaWwb7— Raoul Pal (@RaoulGMI) September 2, 2019Featured Image from Shutterstock