Cryptocurrency Market Outlook; Bitcoin Is Dragging Them All Lower

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Cryptocurrency Market Outlook; Bitcoin Is Dragging Them All Lower

No Catalysts In Sight; Bitcoin Moves Lower

With no catatlysts in sight it is very likely Bitcoin will move lower. As Bitcoin goes so too does the Crytpocurrency market. Traders need to be prepared for lower prices and I don’t just mean with your bearish positions. The next move lower is going to test key support levels that are going to make or break the market. For Bitcoin, this means a retest of $8000 that may goes as low as $7500. Such a move would sorely test the market but not break BTC/USD out of its current consolidation range. If $7500/$8000 confirms as support the bullish flag pattern that is forming on the weekly chart is still intact.

The indicator set up on the weekly chart gives a clue that makes me at least optimistic key support will hold. The indicators are diverging from the news lows in a way that could result in a strong buy signal. Note I say “could result” that buy signal is not yet present, this set up could also lead the coin lower. It all comes down to support, if the market is as bullish as I am on BTC for the long-term support will kick in. If not, well if not then BTC is likely headed down to $6,000, $5,000, $4,000 and $3,000. A close below $7,500 would be incredibly bearish.

Other coins are moving lower as well. The lack of clear catalyst, the growing number of seemingly indistinguishable coins/token, and a public less than enthusiastic about the what/why/how of it all are all playing a part. Ripple, the so-called answer to cross-border banking, is not immune. The coin has seen some adoption but not the kind to drive up its value. In fact, XRP has fallen below its 30-day moving average and on its way down to $0.24 and $0.22.

Litecoin is also showing some bearish tendencies. It, too, has fallen below the short-term 30-day EMA and looks weak. The indicators are bearish but show oversold conditions so the move may not be too deep when and if it comes. At best, bears can expect to see LTC retreat to support at the $50 level. A move below $50 would be bearish but that is not expected now.

Not surprisingly, the Basic Attention Token is holding up rather well while the broader cryptocurrency market wallows. The Brave Browser now has over 8 million active monthly users and that means demand. BAT tokens have utility over the Brave network because users get paid to see ads, if an advertiser wants to use the network they have to buy the tokens. The BAT token is now testing a four-month high and likely to head higher. Resistance is at the $0.28 level, a break above that would be bullish. Until then, traders should watch for signs of buying at or between $0.26 and $0.24.

Cryptocurrency Market Outlook; Ethereum, Ripple, Bitcoin Cash, Litecoin

It’s Not Looking Good, The Market Needs A Catalyst

I just did a quick check of the top-four crytpocurrencies by marketcap that aren’t Bitcoin and I have to tell you, it doesn’t look good. The market appears set to move lower if for no other reason than there isn’t much reason to buy. If there is one thing I hate worse than anything else is an asset that’s moving on an absence of volume. Under these circumstances the prices of Ripple (XRP), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) are unpredictable, there is no telling when some trader somewhere in the world will buy or sell and that could have an exaggerated impact on price action. What I mean is, I wouldn’t be surprised to see a 3%, 5% or 10% move in one or more of these tokens sometime in the near future.

Ethereum, Watch $180 For Your Signal

Ethereum has been in a downtrend since hitting its top in late June. The worlds “most advanced” cryptocurrency is still having trouble getting it’s 2.0 version launched and that is weighing on prices. The coin has made a sharp retreat from a double-top and is now consolidating for what looks like a dip to the $140-$135 level. The key level for traders to watch is $180 where support is currently preventing prices from falling. If the $180 level breaks all those buyers will start becoming sellers and that will fuel a further decline. The indicators are rolling into a bearish signal as I write this, all the coin needs is to follow through on the signal.

XRP, This Chart Is A Short

Of the four charts I viewed today the chart of XRP is the one I want to own the least. In fact, as a trader who normally doesn’t trade bearish, I might short this one because it looks so good. The coin has fallen below a key support level I have been watching for over a year. The price action is forming a little flag pattern that is backed up by the indicators. The indicators are not strongly bearish but they are set up to produce a fairly strong bearish crossover so lower prices are expected. The $0.2362 level is the long-term low and I expect it to be retested. A move below that level would be bearish and take the coin down to new lows.

Litecoin Could Fall Below $70

The Litecoin chart looks equally bearish despite the recent halvening. Traders who’d profited on the way are now taking those profits while they can. The question now is how far will the world’s first and leading Bitcoin offshoot fall before it hits bottom? For now, the coin is consolidating above $70 after having fallen steadily for over two months. The indicators are weak and mixed so there is some support here, if it holds prices may rebound to the short-term EMA, if not a move down to $50 is very possible.

Bitcoin Cash, Uncertainty Is The Only Certainty

I’ll be honest, I don’t really follow BCH that much because I don’t think it matters that much. I mean, we have Bitcoin and Litecoin to choose from already, why do we need another kind of Bitcoin? Regardless, the chart of BCH/USD is one of uncertainty. The price action is wound up in the middle of a wide range with the indicators in support of said range. There is some bearish bias in the indicator but I think support is much stronger than in the other coins I’ve analyzed today.

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Total Market Crash dragging Bitcoin and Cryptos

The collapse of the markets due to the worldwide coronavirus spread is affecting the crypto sector, which has suffered heavy losses this weekend. Bitcoin (13.7-4%), Ethereum(-16.55%), Ripple (-15.12%), or Bitcoin Cash (-21.67%) are typical examples of the drops experienced in these markets. The declines accelerated on Sunday, as two-thirds of them happened yesterday. The Ethereum-based tokens also tanked, with BAT(-20.7%), CRO/-16.13%), and ZRX(-19.04%) leading the slides. Oddly, LEO (+1.41%) and REN( +6.45%) had managed to move up among this selling pressure.

72H Crypto Heat Map

The market capitalization of the crypto sector dropped to $224.869 billion, 13.75% below Friday’s figure of $260.718. That is, 35.85 billion were wiped out of the market in the last 72 hours. The traded volume has been steadily growing and, during the previous 24 hours, was $65.643 billion. The dominance of Bitcoin, grew somewhat as BTC fell marginally less than the average.

72H Crypto Market Cap and Traded Volume

Hot News

West Texas Intermediate Crude is trading below $30 after the talks between the OPEC and its allies. Russia refused to accept Saudi’s cut plan, and, in response, Saudi Arabia slashed crude oil prices during the weekend and announced an increase in production, as an attack against Russia’s market share, as was reported by The Wall Street Journal.

Coronavirus has put the world’s economy at risk. The New York State is declaring the emergency, and in Europe, more cases are reported. Italy’s northern region, containing about 25 percent of its population is locked down, in an effort to stop the epidemic. Worldwide, events are canceled, and schools closed. The damages of the airline sector alone could be in excess of $100 billion. As of today, the virus has infected over 108 thousand people worldwide and was the cause of 3660 deaths.

Technical Analysis – Bitcoin

Chart 1 Bitcoin 4H Chart

Bitcoin descended from $9200 to $7940 in 48 hours. Most of its movement happened on Sunday and during the early morning, while the global markets seem in shock by the unstoppable coronavirus spread and its effects in travel, restoration, industry, and finance.

On the chart, we see that the price has bounced off from its $7750 level, and now is moving above $9,900. We see also that the price has been running very close to the -3SD Bollinger line on extremely heavy volume. That shows BTC is heavily oversold. The Short-term outlook is for it to create a consolidation area, around the $8,000-8,300 region. The level to hold is $7,940, as a drop below it would drive BTC to test again the $7750 and, even, $7,480 and $6,980.

Ethereum

Chart 2 – Ethereum 4H Chart

Ethereum has been dragged by the market selloff until the level of $196, where it stated to find buyers. We see in the chart that the price is moving away from the -2SD Bollinger line, so this is a bounce. The price is too oversold to continue right now. The upward trend has been broken, and the bias is currently to the downside. We have to wait to see if this selloff is about cryptos or about a global market selloff, which could be very well a bottom. The levels to closely watch are $202 and, especially, $196.

Ripple

Chart 3 – Ripple 4H Chart

Ripple, has followed the marked and dropped heavily this weekend. The price has bounced off from the $0.2 level, which seems to be a good price support. The bias is still negative, as in the rest of the sector. Our level to watch is precisely $0.2 a drop below it would be a sign of the resuming of the downward trend and a potential visit to $0.186 and $0.169

The overall market initially dragged Chainlink, but in the last hours, it is holding and showing a recovery. Its MACD is close to making a bullish transition, and the price is trying to move above $4.3. We see also that LINK is making higher highs and higher lows, which is a definition of an upward trend.

Currently, it is still moving on to the lower channel of the Bollinger bands, so we need to be cautious. But this is a good asset to consider when the market stabilizes.

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Latest Crypto News

Latest Crypto News & Analysis

Crypto market shifting to the hyperspace

As expected, the market slows down by reaching, according to indicators, transition zones between bear and bull territories.

Bitcoin Cash Market Update: BCH/USD retreats from $280 post halving

Barely a day after Bitcoin Cash reward halving took place, buyers are already experiencing increased pressure from the sellers. The brief rally at the beginning of the week stalled at $280, leaving $300 untested.

ETH/USD drops down after encountering resistance at the SMA 200

ETH/USD is currently consolidating in a flag formation as it dropped from $173.31 to $171.75 in the early hours of Thursday. The price encountered resistance at the SMA 200 and fell down. If the bulls were to regain control, they have three obvious goals.

Litecoin Price Analysis: LTC/USD recovery hits wall at $48, can buyers hold above $45?

Litecoin price has sustained gains above a key ascending trendline since the dip to $25 support in March. Recovery has been gradual but steady. The tug of war between the bears and the bulls made the $40 level impenetrable until the surge early this week when .

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC breaks its ties with stocks, strives to return its safe-haven status

Most part of the week Bitcoin has been on the recovery path. Slowly but surely the coin left $6,500 behind and even tested waters above $7,000.

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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