Subsequent to a 5 percent drop in a 24-hour span, the bitcoin price has struggled to rebound from the $6,350 mark, despite optimistic momentum indicators.
While bitcoin has broken Relative Strength Index (RSI) trendlines and has demonstrated a neutral zone at 44.3 RSI, the overly strong downtrend of the dominant cryptocurrency led its value to drop continuously.
If bitcoin had rebounded to the $6,600 mark in the past 12 hours, a corrective rally could have occured, delaying or even preventing another drop in the short-term to the lower end of $6,300. However, after briefly recovering to $6,413, the price of bitcoin fell again to the mid-$6,300 region, reducing the probability of a bear trend reversal and corrective rally in the upcoming days.
On July 10, CCN reported that the crypto market lost $22 billion of its combined valuation as bitcoin dropped to $6,400. Normally, a corrective rally resulted by the weakening momentum of bears occurs, even if the volume falls below average.
However, throughout the past 24 hours, the crypto market has not been able to show any momentum that could enable a corrective rally in the next 24 to 48 hours. Based on the movement of the crypto market throughout the past three days, a move for bitcoin to below the $6,000 mark is more likely than a trend reversal.
Ether, the native cryptocurrency of the Ethereum network, had a particularly large drop on July 10, losing more than 10 percent of its value against the US dollar. Most digital assets, both major and minor cryptocurrencies, tend to follow the trend of bitcoin. But, the drop of ether could have been worsened by the MyEtherWallet (MEW) and Bancor scandal.
Yesterday, Bancor lost $12.5 million in a security breach and was forced to freeze funds to ensure hackers could not steal any more funds from the protocol. But, the controversial decision of Bancor to freeze remaining funds generated criticism from crypto experts.
Emin Gun Sirer, a professor at the prestigious Cornell University, said:
“This looks like a straightforward case of bad opsec at Bancor, instead of a more worrisome flaw in their core contract. Of course, the Bancor contract should not have been centrally controllable to this degree. And the core contract should probably have had some rate limits built into it to avoid sudden drains like this.”
Market is Actually Optimistic
Positive events and news have emerged regarding regulatory frameworks surrounding cryptocurrencies in leading markets like South Korea and Japan throughout 2018. Recently, the government of South Korea finalized its plans to acknowledge the crypto and blockchain sector as legitimate industries.
Major exchanges in the US such as Coinbase have established robust custodian solutions to lure in institutional investors from the traditional finance market.
Still, the market is showing a strong bear cycle and lack of volume, momentum, and demand. These positive developments will likely be portrayed in the next rally of the cryptocurrency sector, which experts predict to be in the fourth quarter of 2018.
Bitcoin Technical Analysis: BTC/USD danger remains at large, $3000 eyed
- Bitcoin price on Monday nursing minor losses of some 1.4% into the second half of the day.
- Vulnerabilities continue to lurk for BTC/USD, at danger of retesting the $3000 mark to the downside, where some call it the bottom.
- Bobby Lee, forecasts $333K for Bitcoin. Saying, “If history repeats perfectly, then the current bear market for #Bitcoin would bottom out at $2,500 next month, in Jan 2019. And then the next rally would start in late 2020, peak out in Dec 2021 at $333,000, and then crash back down to $41,000 in Jan 2023.”
Spot rate: 3474.38
Relative change: -1.60%
Support 1: 3466.00, near-term ascending trend line.
Support 2: 3392.70, daily pivot point support.
Support 3: 3252.53, psychological support.
Resistance 1: 3516.95, 15-minute resistance.
Resistance 2: 3655.36, daily pivot point resistance.
Resistance 3: 3777.85, daily pivot point resistance.
BTC/USD 4-hour chart
- Price action is depressed, moving within a range-block, ahead of further potential moves to the deep south, $3K remains eyed.
Crypto market colored in red; Bitcoin languishes under $3,400
- Altcoins resumed the downside after a short-lived recovery.
- Bitcoin returned to $3,300 after an attempt to break above $3,600.
The cryptocurrency market was short-lived. Once again. Bitcoin and other major altcoins resumed the downside movement on Monday with the total capitalization of digital assets in circulation dropped below $110B, killing hopes to witness good bullish trend into the year-end. Prices bumped into resistance levels unable to instigate buying interest amid pessimistic sentiments that gripped the market.
Stephen Innes from Oanda is among those who prefer to hold off on calling the bottom on the cryptocurrency market. He believes that we still do not have a convincing use case for Bitcoin and the absence of good non-speculative reasons to buy it makes the situation worse.
“Bitcoins have gone well beyond the ridiculousness of tulip bulb mania, It’s has been a disastrous year for cryptos, and by all indication, the current bear market could go from bad to worse with no fundamental or underlying reasons to buy BTC even more so when the only support offered up is a squiggly line on an analyst chart,” he commented.
Bitcoin has lost nearly 4 % since this time on Monday to trade at $3,380 at the time of writing. The first digital coin smashed both $3,500 and $3,400 handles after a failed attempt to settle above $3,600. Lack of buying interest may increase the short-term pressure on BTC that has already lost about 84% from its all-time high of $19,000.
Ethereum, the third largest digital asset, stays under critical $100. ETH/USD is changing hands at $90.00, having lost 3.7% in the recent 24 hours. The coin’s market value is dropped at $9.4B, while the average trading volumes have settled at $1.7B, down from $2.5B at the end of the previous week. Ethereum network is getting ready for a pivotal Constantinopole update scheduled for January 2019, which puts the coin under additional pressure.
Ripple’s XRP is trading marginally above $0.30 within the strong bearish trend. The coin is 3% lower on a day-on-day basis and mostly unchanged since the beginning of Tuesday. The second largest coin with market value $12.3B is dominated by bearish sentiments of the cryptocurrency market. Irresponsive to fundamental news, the coin is likely to stay volatile.
All major altcoins out of top-20 are in red, losing from 1% to 10% as bears are back at the driving wheel.
Nouriel Roubini and Anthony Pompliano’s “Buffet Bet 2.0” feud rages in the Twitter-verse
Anthony Pompliano, a Bitcoin enthusiast and the founder of Morgan Creek digital asset recently set off a bet, now being called as the Buffet Bet 2.0, putting $1 million at stake. The bet by Pompliano is a competition between the performance of S&P 500 index and cryptocurrencies as a whole.
Roubini being himself had an opinion on this bet and bad-mouthed Pompliano and his bet, which led Pompliano to invite him to go against the bet. The feud continued as Roubini took to his Twitter saying that Pomp is “changing goal posts” and “talking books all day”.
To Roubini’s Tweet, Pompliano replied:“Talk is cheap. You taking the bet or going to Monday morning quarterback this one?
If you want to check out the index, you can see it here digitalassetindexfund.com”
On December 10, Roubini erupted the feud again when he Tweeted:“You take bets only when there is no counter-party risk, ie when the side losing the bet is still there to pay it. The loser pompous @APompliano who lost 80% for investors in his shitcoin fund is only seeking attention with his bet. His fund will be BUST/GONE well before 10 years”
Pompliano replied to him saying that Roubini was the candidate for the worst call of the decade.
Mark W. Yusko, the co-founder of Morgan Creek Digital also replied to Roubini’s above-mentioned thread saying that there was zero counter-party risk in the “Buffet Bet”.
A Twitter user Bitvillain replied to the same thread:“Sounds like an easy win for you Nouriel. I think there are plenty of good charities that you could donate your winnings to. Take the bet! Surely the odds of crypto beating the S&P 500 over 10 years is close to zero. What could possibly go wrong?”
Meanwhile, on the other side of Twitter-verse, an S&P believer, Jim O’Shaughnessy, Chairman & Chief Investment Officer, OSAM, bet against the cryptocurrencies in his tweet saying that he was up for the bet.
O’Shaughnessy in subsequent tweets said that the bet was not going to happen. He tweeted:“[email protected] won’t do it, @patrick_oshag (my son, the least-millennial millennial I have ever met) is tired of talking about crypto, so, no bet from us. Ah well…