A bleeding market was seen when Bitcoin suddenly fell by 4.89% in an hour, immediately pursued by the altcoins. Ethereum and Litecoin were the major coins that faced the falling king coin’s brunt.
Source: Trading view
After noting a fall of 4.89% in an hour, the king coin was valued at $10,785.55 with a market cap of $192.17 billion. Despite being highly traded with BTC/USDT pair, the 24-hour trading volume was reported to be $20.91 billion while reporting a fall of 5.60% in a day. The top exchanges that reported the highest trading volume with BTC/USDT pairs were Bitx-Z with $85o million, CoinBene with $719 million, and lastly, Binance with $663 million.
Source: Trading view
Ethereum fell by 11.58% in an hour. The value of the coin was brought down to $267.76 with a market cap of $26.26 billion. It reported the 24-hour trading volume of $6.90 billion, despite falling over 8% in a day. The crypto was highly traded on CoinEgg via LTC/ETH pair that reported a volume of $358 million.
BitMart took the second and the third spot for Ethereum trading via ETH/USDT pair and ETH/BTC pair that reported a trading volume of $226 million and $205 million, respectively.
Source: Trading view
LTC fell by 6.83% and was valued at $93.93. The market cap of the coin was $5.885 billion and the 24-hour trading volume was $3.29 billion. The coin has been undergoing ups and down due to volatility and reported a fall of over 7% in a day. It reported a high trading volume on CoinEgg with LTC/USDT, LTC/ETH, and LTC/BTC pairs. The LTC/USDT pair reported $374 million in trading volume, followed by LTC/ETH pair noting $358 million, while LTC/BTC pair reported a trading volume of $292 million.
Researcher: Bitcoin is Alive and Well, Price Still in Macro Uptrend
Bitcoin owners have had many things to worry about over the past months. For instance, the price of BTC has tumbled by some 50% since June of this year, falling as low as $6,600 from $14,000. Also, there’s been increasing regulatory scrutiny from some of the world’s most powerful governments and entities due to Facebook’s foray into cryptocurrency, along with China’s announced intentions to launch a digital currency.
Though, a top researcher working in the industry has recently aimed to reassure BTC “HODLers,” releasing an extensive Twitter thread showing that the cryptocurrency’s long-term fundamental uptrend should remain intact.
Bitcoin’s Future Looking Bright
Hans Hauge, a senior quantitative researcher at Los Angeles-based crypto fund Ikigai Asset Management, recently gave a confluence of reasons why he remains bullish on the leading cryptocurrency.
He first drew attention to the below chart from a director of Visa about Bitcoin and cryptocurrency, which was published in a report written by Deutsche Bank, the 17th largest bank in the world. In it, they estimated that the number of users of Blockchain Wallet (blockchain.com) could surmount over 200 million — around six times higher than where the sum currently is — by 2030. (The same report also included an opinion from a Deutsche Bank analyst, who said that Bitcoin could replace fiat should issues persist in the financial system.)
Hauge also looked to the fact that the CEO of Bakkt has just become a U.S. Senator, meaning that Bitcoin could get its own cheerleader in Washington.
He also noted that BTC is “actually pretty close to where it should be,” in reference to a model that takes the number of “Bitcoin transactions ever confirmed and use that as an input into a log-scale linear regression model.”
And that wasn’t all. The researcher also noted that with the halving approaching, HODLers keeping their coins locked up, the Reserve Risk indicator suggesting a long-term buying zone forming, and price holding relatively strong, he would be inclined to believe that the future looks bright.
Shared Bitcoin Outlook
Hauge’s cheery outlook is consistent with that of Ikigai’s CIO and founder, Travis Kling. The former Wall Streeter told Yahoo Finance in October that by late-2020 or early-2021 — around 18 months from now — the Bitcoin price is likely to have surmounted $20,000 for the first time ever.
Kling’s theses about the impending appreciation in the BTC price are centered around the idea that the world’s central banks will continue to adopt “unorthodox” monetary and fiscal policy, favoring a decentralized form of money and savings vehicle, that being Bitcoin.
Technicals Also in Bulls’ Favor
It isn’t only the Ikigai researcher that has recently noted that the long-term trend favors bulls.
Per previous reports from NewsBTC, Philip Swift, the founder of cryptocurrency analytics site LookIntoBitcoin, recently issued a 10-part thread on the sentiment that BTC is trending long-term positive. He first drew attention to the fact that Bitcoin is holding above its 350-day simple moving average; this is important as the price moving and holding above this moving average “has always indicated the start of Bitcoin bull markets.”
He added that the Golden Ratio Multiplier, an equation that the analyst created to analyze the BTC price, implies that the cryptocurrency could see an explosive move to $12,000 to $13,000 by January of February. For some perspective, Bitcoin hitting $12,000, Swift’s low-end estimate, from current prices would require it to surge by some 65%, in three months’ time no less.
Weekly Market Summary: Records Are Breaking As Bitcoin Stuck Above $7000
December 2019 is already here, and it came in kicking. November’s volatility doesn’t seem to end, as, in the past seven days alone, Bitcoin went through a couple of significant swings. The world’s largest cryptocurrency reached a high of around $7,800 in the past week, only to decrease to as low as $7,150 and recover a few days later to where it’s currently trading at around $7,460.
On another note, Bitcoin’s network has demonstrated its enhanced capabilities as it processed over $8.9 billion in a single hour, setting a brand new record. Not only has the cryptocurrency increased in value over the past few years, but its network is also maturing, highlighting some of its essential benefits. Adoption also continues, even at slow rates, as Tokyo-based Softbank announced its new debit card, which will support cryptocurrencies as well.
Meanwhile, Bitcoin’s dominance continues to struggle between 66% and 67%, meaning that altcoins are still able to hold their grounds. Some of them made impressive strides, including MATIC, which noted 160% bi-weekly gains, starting its very own private altcoin season.
Enjin Coin also gained upwards of 60% following an announcement that they have partnered up with Microsoft. Other large-cap cryptocurrencies such as Litecoin, Ethereum, Binance Coin, and so forth, remained range-bound for the most of the week.
On another note, some of this week’s news showcase that the market is still very young and has a lot of room for improvement. For instance, wash trading continues to be a problem, as CoinMarketCap showed that 93% of all of the circulating supply of Litecoin changed hands in a single day. Moreover, cryptocurrency hedge funds are also closing down this year, suggesting that the market is still driven mostly by retail investors.
As we dive deeper in December, it remains interesting to see whether bulls will take over and trigger the much-awaited Christmas rally or if bears push the market lower. In any case, we are in for one exciting December.
Market Cap: $203B
24H Vol: $57B
BTC Dominance: 66.9%
BTC: $7,522 (2.15%)
ETH: $149,53 (1.12%)
XRP: $0,225 (3.46%)
Tokyo-Based Softbank to Offer Cryptocurrency Debit Cards To Its Clients. One of the more popular banks in Japan, Softbank, has announced that they will introduce a new type of debit card equipped with IoT chips, which could be used as a cryptocurrency wallet as well. Clients will be able to operate with both fiat currencies and digital assets.
Who Wants Bitcoin For $680? A Sudden Flash Crash On Binance USDS Market Sank BTC Price. Bitcoin went through a sudden flash crash on the world’s leading cryptocurrency exchange, Binance, against the USDS stablecoin. The price dropped to as low as $680 only to recover moments later, benefiting those who had set low buying orders in the process.
Report: Number of Cryptocurrency Funds Decreases As Retail Investors Drive The Market. According to a recent report, more than 70 cryptocurrency funds have closed this year alone. The majority of them served wealthy individuals and family offices. The number of newly-launched cryptocurrency funds has also decreased in 2019. This outlines that the market, in its majority, is still driven by retail investors.
John McAfee Kicks Off 2020 Presidential Campaign: Vows To Disrupt This System. The legendary entrepreneur and well-known cryptocurrency proponent, John McAfee, has announced that his 2020 Presidential campaign has officially begun. While he outlined that he can’t become a president, he has also shared that he can disrupt the existing system and that he fully intends to do so.
Wash Trading Menace: 93% Of All LTC Traded In A Day According to CoinMarketCap. Prominent analysts have pointed out that the issue with displaying wash trading information on the popular monitoring resource CoinMarketCap continues. According to the website, 93% of all Litecoin in circulation changed hands in a day, which is peculiar.
Bitcoin Breaks Records: $8.9 Billion Processed In An Hour. Bitcoin’s network continues to prove that it’s capable of handling large transactional volumes as it has processed a whopping $8.9 billion in a single hour. This is a new record in terms of hourly USD transaction volume and also represents a huge increase compared to previous years.
Bitcoin Price Showing Hidden Signs of Reversing — Next Target $8.2K
This week Bitcoin (BTC) continued to trade within a tightly defined range and at the time of writing the price is flat. The bulls and bears have been throwing the market back and forth with moments of high volatility on the lower timeframes, all of which are often a sign of a larger move simmering beneath the surface.
The wider market remains in a similar position, although some altcoins like XRP have slightly outperformed Bitcoin over the past 24 hours.
Cryptocurrency market daily view. Source: Coin360
Watch the weekly chart
BTC USD Weekly chart. Source: TradingView
Analyzing the weekly chart shows that Bitcoin has fundamentally been locked in a bearish posture for close to six months and this is defined by the downward sloping diagonal resistance.
Major resistance was found at $11,500 and the $9,500 and $7,500 support eventually turned into resistance. Support has now been found at $6,500 which was a critical bullish rejection level in the first half of the year and is demonstrative of a high volume node on the VPVR.
Bitcoin is currently trading up against previous support which has flipped to resistance and the Doji candlestick is a clear sign of indecision in the market as traders are pushing price within a clear range and coming back to the center.
This shows that the bulls and bears are struggling to find a direction. Bitcoin price can either reverse course or find continuation of the previous candle but ultimately, the current price action defines the week to date quite nicely.
Moving averages provide useful insight
The 50 and 100-week moving average (WMA) are in the process of crossing bullish which has only occurred a few times in Bitcoin’s history and has signaled an impending upside move. It is important to note that moving averages do not drive a market, they lag the market but can help to identify macro changes in the market’s direction.
The 200-WMA is situated in the $5,000 range where there is also some historic volume interest at this price range. Many analysts are calling for a retest of the 200-WMA which would likely be a last line of defense for bulls. This would also be unprecedented at this stage in the Bitcoin market cycle.
Generally, volume on spot exchanges has been decreasing through the circa six-month decline which is typically a sign of sellers becoming exhausted as each push lower entices fewer participants to sell.
The moving average convergence divergence (MACD) has crossed the zero line to the bearish side, meaning that the underlying moving averages are now crossed bearishly. However, there is a higher low forming on the histogram which is an unconfirmed bullish divergence.
Thus, on a macro level, it seems as though the market is either at a turning point or it is looking to prepare for continuation; unlike previous weeks, it is a less clear picture.
BTC USD daily chart. Source: TradingView
The daily chart clearly shows the downward trending channel in which Bitcoin has spent months trading, defined by lower highs and lower lows. The lower 25% of the channel has acted as support and resistance throughout the downtrend and is once again being tested.
The outcome is normally an explosive move up or a retest of the bottom of the channel. The 50% retracement of the channel is currently at $8,200 and would represent a reasonable breakout target. A retest of the channel could possibly occur at $6,500.
The MACD histogram shows that there is bullish divergence forming and the MACD line itself has crossed bullish and plotted a higher low which is also a sign of bullish divergence.
The on-balance volume indicator (OBV), a tool that is demonstrative of the directional strength of cumulative volume, also shows a bullish divergence which is concurrent with the decreasing volume on the weekly chart. The OBV is however still trending down and a break out may imply a turn in the market.
Overall, the daily chart shows a reasonable case for the bulls but is strongly defined by the downtrend which must be respected.
BTC USD 4-hour chart. Source: TradingView
The 4-hour chart shows that Bitcoin is trading within a horizontal range between $7,900 and $6,500 and the digital asset has found support at the equilibrium of the two local extremities. At present, the 50% Fibonacci retracement ($7,200) is acting as support.
This is a positive sign for the bulls who hope to retest the upper $7,000s. However, failure to hold above $7,000 will almost inevitably lead to a retest of $6,500 which is in line with the downward channel on the daily chart. At present, the price action is leaning bullish but only marginally.
If the bulls can reach out and close in the upper $7,000s, Bitcoin price will complete an Adam and Eve pattern, which would imply that a move well into the $8,000s and as high at $9,000 would be possible. This would be quite significant and does make sense as it would mean Bitcoin reclaimed the previous weekly trading range, but at this stage is just pure conjecture rather than a direct prediction of an imminent move.
On the 4-hour timeframe, the MACD is reaching out towards the zero line, painting a higher high on the histogram, both of which are supporting the bullish case in the market. Trading volume is also declining within the range which implies that the market is winding up to make a definitive move.
BTC USD 4-hour chart. Source: TradingView
In summary, the market remains in a downtrend so any bullish signs must be taken somewhat lightly. However, it is clear across all timeframes that Bitcoin’s price action is attempting to flip to the bullish side.
There are signs in the trading volume and the momentum in which the decline has somewhat subsided. The likely outcome is that there will be more volatility within this current consolidation before Bitcoin makes more of a definitive move to retest previous critical weekly support and resistance levels.
The views and opinions expressed here are solely those of the (@filbfilb) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.