Bitcoin and Altcoins Could Stage Short Term Recovery
Recently, there was a significant drop in bitcoin price below the USD 12,500 and USD 12,000 support levels. BTC/USD traded close to the USD 11,000 support level and later started consolidating losses. It is currently (06:30 UTC) correcting higher, but it might face hurdles near USD 11,650 and USD 11,850. Similarly, there were significant losses in major altcoins, including ethereum, bitcoin cash, ripple, EOS, litecoin and stellar. ETH/USD broke the USD 280 support and tested the USD 260 support. XRP/USD declined sharply below USD 0.350 and tested the USD 0.315 support.
Total market capitalization
After a strong decline, bitcoin price found support near the USD 11,000 level. BTC/USD is currently consolidating, with corrective moves above the USD 11,200 level. On the upside, an immediate resistance is near the USD 11,450 and USD 11,600 levels. If there is an extended recovery, the price could test the main USD 11,850 resistance area.
On the downside, an initial support is near the USD 11,120, followed by USD 11,000. If the bulls fail to keep the price above USD 11,000, there could be another drop towards the USD 10,200 or USD 10,000 level.
Ethereum price declined below USD 300 and USD 280. ETH/USD tested the key USD 260 support area and recently started an upside correction. There was a break above the USD 270 level, but the price is facing many hurdles near the USD 275 and USD 280 levels.
On the downside, the USD 260 support holds the key. If there are more losses, the price could test the USD 250 level.
Bitcoin cash, eos and ripple price
Bitcoin cash price fell significantly below the USD 360 and USD 350 support levels. BCH/USD tested the USD 315 level and recently recovered above USD 340. However, the price is likely to face a strong resistance near the USD 360 and USD 375 levels in the near term. The main supports are near USD 325 and USD 315.
EOS broke the USD 5.000 support area and even spiked below USD 4.500. It tested the USD 4.400 level and recently corrected above USD 4.700. On the upside, the price may perhaps struggle to surpass the USD 4.850 and USD 4.900 resistance levels in the near term.
Ripple price tumbled below the USD 0.350 and USD 0.342 support levels. XRP/USD even broke USD 0.320 and tested USD 0.315. It is currently consolidating gains near USD 0.325 and it might decline further below USD 0.320.
Other altcoins market today
In the past two sessions, a few small cap altcoins recovered and corrected more than 5%, including JCT, WTC, BZNT, BTG, ABBC, CCCX and KMD. Out of these, JCT gained more than 25% and WTC is up nearly 16%.
To sum up, bitcoin price tested a major support zone near USD 11,000 and it is currently correcting higher. However, upsides are likely to remain capped near USD 11,650 or USD 11,850 and BTC/USD is likely to resume its slide in the near term.
Find the best price to buy/sell cryptocurrency:
Bitcoin (BTC/USD) forecast and analysis on October 18, 2019
Cryptocurrency Bitcoin (BTC/USD) is trading at 7991. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish 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 October 18, 2019
As part of the Bitcoin exchange rate forecast, a test level of 8200 is expected. Where can we expect an attempt to continue the fall of BTC/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 7260. The conservative area for Bitcoin sales is located near the upper border of the Bollinger Bands indicator strip at 8420.
Cancellation of the option to continue the depreciation of Bitcoin will be a breakdown of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and closing of quotations of the pair above the area of 8540. This will indicate a change in the current trend in favor of the bullish for BTC/USD. In case of breakdown of the lower border of the Bollinger Bands indicator bands, one should expect acceleration of the fall of the cryptocurrency.
Bitcoin (BTC/USD) forecast and analysis on October 18, 2019 implies a test level of 8200. Further, it is expected to continue falling to the area below the level of 7260. The conservative area for selling Bitcoin is located area of 8420. Canceling the option of falling cryptocurrency will be a breakdown of the level of 8540. In this case, we can expect continuation growth.
Bitcoin re-enters $8,000-zone, but what is its upside potential? – Confluence Detector
- BTC/USD went up from $7,998.50 to $8,077.50 this Thursday.
- The daily confluence detector shows two healthy resistance levels to overcome on the upside.
Following two straight bearish days, which took the price below the $8,000-zone, BTC/USD is on the course to recovery. Bitcoin had gone up from $7,998.50 to $8,077.50 this Thursday before it improved further to $8,087.40 this Friday. The hourly BTC/USD chart shows us that the market found intra-day resistance at $7,943.15 before it bounced up to $8,075. Since then, the price trended horizontally for a bit, negotiating with the $8,090 resistance line. The bulls managed to rally together to break past it and go up to $8,110, before correcting itself to $8,087.40.
BTC/USD daily confluence detector
The daily confluence detector has two healthy resistance levels at $8,190 and $8,260. $8,190 has the five-day Simple Moving Average (SMA 5) and one-week Fibonacci 61.8% retracement level. $8,260 has the SMA 100, one-day Pivot Point resistance two and one-day Bollinger Band middle curve.
On the downside, there is a support level of note at $8,065, which has the SMA 5, SMA 50, SMA 200, one-hour Bollinger band middle curve, one-day Fibonacci 38.2% retracement level and one-hour previous low.
Bitcoin could become store of value, as institutional interest increases
Institutional interest in Bitcoin has seen a significant rise in 2019, as several derivative financial products on top of Bitcoin have flooded the market. Active exposure of these investors to the digital asset realm has brought back the debate about whether Bitcoin is the new “store of value.” According to Grayscale’s managing director Michael Sonnenshein, there has been a certain shift in perception for sure.
Sonnenshein appeared on ‘The Scoop‘ recently to discuss the impact of institutional investor’s exposure to the digital asset class. The managing director of the firm believed that although Gold has been the standard store of value for centuries, and it made sense in the physical age, but given the rapid growth of the digital monetary age, Bitcoin for sure is challenging to become the new store of value. He explained,
“It is now nearly 2020 and we’re starting to ask investors with this question which is, what constitutes a store of value? It historically has been gold but that may have made more sense for a physical age. As we are in fully immersing ourselves now in this digital age perhaps gold doesn’t hold up as much as it once did as that store of value and perhaps investors need to think about a digital store of value such as Bitcoin.”
Institutional investors hold the key for Bitcoin and any other digital asset to gain mainstream adoption, and as of today they are more aware and learned about Bitcoin and its potential as an investment than ever before. More importantly, these investors are using Bitcoin as a hedge fund and store of value to diversify their investment portfolio as well as make quick capital gains on their investment.
The increasing interest of institutional investors is evident from the fact that GrayScale registered its highest gain in the last quarter with over $250 million raised from the investors, Binance has registered the highest daily volumes of over $700 million from its Binance futures platforms. Bakkt has launched its futures contracts recently while CME’s futures contracts year-to-date volumes have seen a significant rise over the past year.