- Cryptocurrencies are giving up gains of the previous week
- Bitcoin is doing relatively well as compared to altcoins.
- Here are the levels to watch according to the Confluence Detector.
Cryptocurrencies are in retreat. The total capitalization of all digital assets in circulation collapsed from $184 billion during early Asian hours to $180 billion by the time of writing. Bitcoin, the largest and the most popular digital asset, retreated from May 4 high of $5,839 to trade marginally above $5,600 handle by press time, BTC/USD has lost over 1.5% in recent 24 hours; however, altcoins are in a deeper decline. Ethereum and RIpple both down over 2%, while other coins out of top-20 nursing losses from 3% to 7%.
Various positive news items related to institutional adoption have underpinned the currency crypto craze. The broader picture is of an ongoing rally since the initial jump in April and since the great crash of November and December.
Meanwhile, the fundamental background remains robust. Broader institutional adoption amid improved risk sentiments supports the long-term bull’s case scenario. Though, on the intraday level, the market is prone to the downside correction, which is healthy as long as the prices stay above critical levels.
So, what levels should we watch?
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD clinches to $5,600
Bitcoin settled above $5,600 after a strong sell-off during early Asian hours. The cryptocurrency may spend some time in the current range, consolidating consolidate before the next move. Initial resistance awaits it at $5,640, created by a combination of the Bollinger Band 15min-Middle, the previous monthly high, and the previous daily low as well as 23.6% Fibo retracement weekly and the middle line of 4-hour Bollinger Band.
The next strong barrier lies on approach to $5,800 where we see an upper boundary of 1-hour Bollinger Band, the previous
On a trip to the South, BTC/USD will case a substantial support at $5,530 with Fibonacci 38.2% one-week. A sustainable move lower is likely to increase the downside pressure and take us towards psychologocal $5,400 and $5,350 created by a confluence of Fibonacci 23.6% one-week and Bollinger Band 1day-Middle
ETH/USD has calmed down after the sell-off
Ethereum needs to stay above $160.00 to retain a positive stance. At the time of writing the second is hovering at $162.00, down 2% since this time on Sunday.
There are a lot of technical barriers located right above the current price, however, the most important resistance is spotted on approach to $164.00. It is created by a confluence of SMA50 (1-hour), SMA200 (15-min), SMA100 (1-hour), an upper barrier of 1-hour Bollinger Band and a midline of 4-hour Bollinger Band.
Once above, the recovery may be extended towards $170.00 (38.2% Fibo retracement monthly and an upper line of 4-hour Bollinger Band).
Below the current price, watch out for psychological $160.00 followed by $158.00 strengthened by DMA50
XRP/USD dives under $0.30
Ripple has a hard time staying above $0.30 handle. The third largest coin with the current market value of 12.5 billion has lost 2% of its value in recent 24 hours. The price recovered from the intraday low of $0.2987, but the momentum is not strong enough to take it safely above $0.30 handle.
A strong upside barrier $0.3050 may limit the recovery attempts for the time being. This resistance is created by a confluence of SMA10 and SMA50 (4-hour), SMA200 and SMA50 (1-hour), DMA10 and 38.2% Fibo retracement daily.
Once it is out of the way, the recovery may be extended towards $0.3100-$0.3130, protected by the middle line of 1-day Bollinger Band. The next upside barrier awaits the coin on approach to $0.3200 with 61.8% Fibo retracement monthly.
On the downside, a sustainable move below $0.2900 will spoil the short-term technical picture and bring $0.2827 (the previous month low) back in focus.
Bitcoin (BTC/USD) forecast and analysis on January 24, 2020
Cryptocurrency Bitcoin (BTC/USD) is trading at 8563. Cryptocurrency quotes are trading above the moving average with a period of 55. This indicates a bullish trend on Bitcoin. At the moment, cryptocurrency quotes are moving near the lower border of the Bollinger Bands indicator stripes.
Bitcoin (BTC/USD) forecast and analysis on January 24, 2020
As part of the Bitcoin exchange rate forecast, a test level of 8420 is expected. Where can we expect an attempt to continue the growth of BTC/USD and the further development of the upward trend. The purpose of this movement is the area near the level of 9160. The conservative area for buying Bitcoin is located near the lower border of the Bollinger Bands indicator strip at 8400.
Cancellation of the
Bitcoin (BTC/USD) forecast and analysis on January 24, 2020 implies a test level of 8420. Further, growth is expected to continue to the area above the level of 9160. The conservative buying area is located near the area of 8400. The breakdown of the cryptocurrency growth option will be the breakdown of the level of 8320. In this case, we should expect further fall.
Billionaire investor advises people to stay away from Bitcoin
- Ray Dalio said that Bitcoin is too volatile to be a store of wealth, at present. Instead, he suggests a small allocation in gold.
- He also noted that currently, “cash is trash” and that investors must look for a well-diversified portfolio.
The founder of investment firm Bridgewater Associates, Ray Dalio, has warned people not to get involved with speculative currencies like Bitcoin in 2020. Appearing on CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland, Dalio said:
There’s two purposes of money, a medium of exchange and a store hold of wealth, and Bitcoin is not effective in either of those cases now.
He believes that Bitcoin is too volatile to be a
Because of the volatility, you can’t go next to it. Someday, you know, I would say Libra or something with more stable value has got more potential. But also, who is going to do the buying? Central bankers and others? What are they going to hold as reserves?
What has been tried and true? Are they going to hold digital Bitcoin? They are going to hold gold. That is a reserve currency, and it has been a reserve currency for 1,000 years… A bit of gold is a diversifier, and that’s the advice I can give.
He also noted that currently, “cash is trash” and that investors must look for a well-diversified portfolio.
Visa continues to dwarf Bitcoin in this important metric
Despite optimistic predictions, Bitcoin still has a long way to go before it can compete with companies such as Visa. The fiat currency giant reported transaction volume of over $11.2 trillion in 2018, while Bitcoin network only managed to transact around $2.2 trillion until 2019.
Visa dominates all payment processors with $11 trillion transaction volume
While the crypto industry as a whole seems confident that digital assets will ultimately replace traditional fiat currencies, the reality is that there’s a long way to go before the two can even compete in the same category.
The growing transaction volume of most high-market cap cryptocurrencies definitely shows that major improvements are made. However, most of that growth fades away when compared to the big players in the payment processing industry.
According to its annual performance report, Visa saw a total transaction volume of just over $11.2 trillion. The volume is the sum of both the payment volume and cash volume, with the payment volume being the total monetary value of transactions on Visa-branded cards and payment products, the company explained in the report.
This is a huge increase from the $10.3 trillion the company reported in 2017 and an even bigger increase from the $8.1 trillion in total volume
Bitcoin still has a long way to go to catch up with Visa
Bitcoin‘s numbers aren’t nearly as impressive as these. However, it’s worth noting that digital asset data can often be misleading and can never be taken at face value. As a Fidelity Digital Assets research put it, one of the most commonly overstated measures is Bitcoin’s transaction volume.
Most data providers use an unspent transaction output (UTXO) system, which doesn’t distinguish between economic and non-economic transactions. Because of that, the difference between the adjusted and unadjusted transaction value figures are often very significant.
According to the report, Bitcoin’s total adjusted transaction value from inception to Dec. 11, 2019, was approximately $2.2 trillion. It’s unadjusted transaction volume, however, stands at approximately $7.5 trillion.
While the $2.2 trillion is a significant achievement for a system as young and as novel as Bitcoin is, it’s still a long way behind Visa. Bitcoin’s transaction volume was amassed over a period of more than 10 years, while Visa recorded its $11.2 trillion from September 2017 to September 2018.