Connect with us

Cryptocurrencies

Bitcoin price drops below $9,000, Ethereum and XRP following

Published

on

Bitcoin just moved below $9,000 and is bringing the rest of the market down with it. Over the last 40 hours, Ethereum plunged over 6 percent, while XRP plummeted nearly 14 percent. The following technical analysis will evaluate where these three cryptocurrencies could be heading next. 

Bitcoin (BTC)

Bitcoin has been consolidating within a descending parallel channel since June. 26. Since then, every time this cryptocurrency reaches the bottom of the channel, it bounces off to the middle or the top. But, when it reaches the top, it falls back to the middle or the bottom.

At the moment, BTC is retracing after hitting the top of the channel. A move down to the middle or the bottom of the channel could now be expected, as it has happened in the last four months. 

Adding to the bearishness, the moving average convergence divergence (MACD), which is commonly used to follow the path of a trend and calculate its momentum, appears to be turning bearish. As the 26-day exponential moving average crosses over the 12-day exponential moving average, the probability for a downward movement increases.

As a result, Bitcoin is going down to test the support given by the 50-day moving average, which is sitting around $8,600. This is the same area where the 50 percent Fibonacci retracement level and the middle line of the descending parallel channel sit. Consequently, the zone between $8,600 and $8,100 poses a significant amount of support that could hold the price of BTC from a further correction. 

This area could serve as a rebound point for Bitcoin that takes it to test the top of the descending parallel channel once again. But, an increase in the selling pressure behind BTC could prolong the consolidation period and trigger a move down to the bottom of the channel that sits at $6,900.

BTC US dollar price chart
BTC/USD by TradingView

Despite the bearish outlook, Bitcoin remains bullish on the long-term perspective. A bull flag has been developing on its 3-day chart since late March. This is considered a continuation pattern that formed after Bitcoin surged to nearly $14,000, known as the flagpole, and was succeeded by the current consolidation period, known as the flag, which could result in a breakout in the same direction of the previous trend.

Ethereum (ETH)

Based on its 3-day chart, Ethereum appears to have formed a double bottom or “W” pattern around the 75 percent Fibonacci retracement level. This technical formation developed as Ethereum plummeted to $153 on Sept. 26, surged to $198 on Oct. 11, and then pulled back again to $153 on Oct. 23. While ETH’s price behavior formed a “W” shape, the double bottom estimates a change in trend and momentum from bearish to bullish.

ETH US dollar price chart
ETH/USD by TradingView

Despite the optimistic view, ETH is consolidating since late October between $180 and $192. Thus, this area can be considered a no-trade zone. Breaking outside of this trading range will determine where Ethereum is heading next.

On the downside, this crypto could plunge to $168 or $157 if it closes below $180. But, a spike in volume could take Ethereum to surge above $192 targetting a move to $207 or even to the 50 percent Fibonacci retracement level that sits at $223.

XRP 

XRP is trending down despite the expectations that Ripple’s Swell generated. Based on its 3-day chart, the TD sequential indicator gave a sell signal on Oct. 28 that now seems to have been validated. 

At the moment, XRP is being held by the 30-three-day moving average. Closing below this support level could ignite a sell-off that takes this cryptocurrency down to the next support levels that sit at $0.26, $0.25, and $0.24. 

XRP US dollar price chart
XRP/USD by TradingView

Nevertheless, 40-year trading veteran Peter Brandt recently stated that a diamond bottom pattern seems to be forming in XRP’s daily chart. Diamond bottoms are reversal patterns that are not common on traditional assets but are usually effective in the crypto market. Brandt estimates that if XRP is able to close above $0.30, it could shoot up more than 50 percent to $0.47.

Overall Sentiment

In the short-term perspective, the sentiment around the market is bearish. As Bitcoin moved below $9,000 without being able to finally break out of the consolidation phase it entered since four months ago, the odds for a pullback to $6,900 are growing. The same happens with Ethereum, which could retrace to $157 if the selling pressure behind it increases. And, XRP is showing signs of a move down to $0.24.

However, when looking at the market from a long-term perspective, everything looks bullish. Bitcoin is forming a bull flag that could lead to a 70 percent upswing to $16,500. Ethereum is developing a double bottom pattern targetting $223. And, XRP is in a diamond bottom pattern that could take it to $0.47, as Peter Brandt explained. 

News Source

Click to comment

Cryptocurrencies

TOP 3 Price Predictions: BTC, ETH, XRP — What Signs Will Reveal the End of the Bearish Trend?

Published

on

  • Bitcoin is pushing the cryptocurrency market down again. Will there be a rescue attempt for the altcoins?

The end of the last week was extremely volatile for the cryptocurrency market as Bitcoin (BTC), the most popular crypto, crashed by about $400 in just a matter of hours. However, the altcoins did not follow BTC’s trend. Currently, the top 10 coins are located in the red. 

Top 10 coins by Coinstats

Top 10 coins by Coinstats

Below is the key data for Bitcoin, Ethereum, and XRP has changed the following way over the last day.

NameTickerMarket CapPrice Volume (24H)Change (24H)
BitcoinBTC$157,790,994,536$8,746.17$22,644,934,647-1.64%
EthereumETH$20,270,299,136$186.80$8,603,961,374-0.38%
XRPXRP$11,869,525,095$0.274133$1,574,356,506-2.85%

BTC/USD 

BTC has followed our earlier scenario, having dropped in price to the $8,600 mark. While the general trend has not switched to a bullish one, the price may shoot back up to the $9,000 mark. 

BTC/USD chart by TradingView

BTC/USD chart by TradingView

Analyzing the 1H chart, the relative strength index (RSI) indicator shows that BTC is oversold. This means that the price of BTC may rocket upwards in the near future. The Fibonacci retracement is another strong signal that favors an upwards swing in the price. In this particular case, $8,933 (61.8%) is a crucial resistance level that might be achieved soon. 👉MUST READ

Last but not least, the trading volume index shows a significant dominance by buyers against the ongoing drop.

At press time, BTC is trading at $8,711.

ETH/USD 

ETH is the only other top 3 coin whose rate has increased over the last 7 days. While BTC and XRP have declined by 5.70% and 6.80% respectively, the price of ETH has increased around 1%.

ETH/USD chart by TradingView

ETH/USD chart by TradingView

The chief altcoin is showing significantly better price dynamics than BTC. Looking at the hourly chart, one can observe the shadow of a long bearish candle. This usually means an upcoming bullish wave. The trading volume is also at a relatively high level, confirming that bears are running out of steam. In this particular case, traders might expect ETH to hit a price of $188 by the end of the week.

At press time, Ethereum is trading at $186.15.

XRP/USD

XRP has not show growth or even slight growth against the downfall of the general market. Since yesterday, the coin has lost 2.73%.

XRP/USD chart by TradingView

XRP/USD chart by TradingView

Even with the sharp upswings and downswings, XRP is the only coin whose trading volume has not declined. On November 8th, the price left its support level to a price of around $0.27.

Currently, the situation is almost identical, with the RSI indicator located in the oversold zone. Based on these factors, one might conclude that a resistance level of $0.2750 might be reached shortly.

At press time, XRP is trading at $0.2716.

Continue Reading

Cryptocurrencies

China might have a change of heart towards cryptocurrencies

Published

on

  • Chines newspaper publishes material about bitcoin.
  • Chinese authorities may soften their approach to digital currencies.

China adopted a tough approach towards the cryptocurrency industry; however, the attitude of the Chinese authorities seems to be changing gradually. 

The Chines state newspaper Xinhua published a lengthy article explaining the details about the first cryptocurrency. The authors of the story call Bitcoin the first successful application of Bitcoin.

The newspaper describes how bitcoin network works, explains the idea of mining and the BTC transactions confirmation process. The article looks like an educational material; however, the authors also mention the high volatility of Bitcoin prices and claim that the cryptocurrency is mostly used on a black market.

Slow improvements

While the story is not entirely pro-crypto, such publications in state-run newspapers may indicate that the authorities may be changing their touch attitude towards digital assets.

Recently, China’s President Xi Jinping said that the country should embrace the blockchain technology to seize global leadership in hi-tech innovations. 

It is worth noting, that China imposed a ban on cryptocurrency trading in September 2017; however, the recent flow of positive news may eventually mean that the country is ready to lift the restrictions. 

This development will serve as a strong bullish catalyst for bitcoin and ensure a sharp price increase to a new high of 2019. Meanwhile, at the time of writing, BTC/USD is changing hands below $8,800, down 2.5% since the beginning of the day.

BTC/USD, daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

source:fxstreet

Continue Reading

Cryptocurrencies

Cryptocurrency News Today – Headlines for November 11

Published

on

top
  • MAS Partners with JP Morgan to Revolutionize Cross-Border Payments with Blockchain
  • Both JP Morgan and MAS are excited about the Partnership

Cryptocurrency News Today – There has been a considerable shift in top investment companies and banking services moving towards accepting blockchain for their payment methods and storage systems. Recently, the central bank of Singapore – Monetary Authority of Singapore (MAS) – decided to partner with JP Morgan – an investment banking giant – to create a blockchain prototype that would help in enhancing international settlements.

MAS Partners with JP Morgan to Revolutionize Cross-Border Payments with Blockchain

MAS disclosed this development on November 11 via a blog post on its website. The firm disclosed details about the new project and how they can use the same network to carry out transactions in different currencies with the help of the blockchain prototype. Temasek – a government-owned investment company – also supports the project.

The Chief Fintech Officer of MAS – Sopnendu Mohanty – said that blockchain-based settlement networks have helped them to improve cost efficiencies. They have also been able to build new opportunities for businesses. This blockchain prototype is part of Project Ubin. Project Ubin started in Nov. 2016. The project aims to explore the potential of blockchain technology as well as its impact on banking services.

The financial services industry of Singapore and MAS came together to launch the project. The project would help them implement blockchain technology for settlements and clearing of securities and payments.

JP Morgan Is Excited About the Partnership

John Hunter – the global head of clearing, and IIN at JP Morgan – confirmed the news and expressed their happiness and excitement about this partnership. He also said that their knowledge and expertise from working on the JPM Coin and the IIN (Interbank Information Network) would guide them through this development process. MAS is also very excited about this collaboration. They believe that such developments would encourage central banks to embark on similar projects also. ‘

The firm wants to make the technical specifications public to help drive the efforts, and they also want to enhance the cross-border connectivity. By next year, the firm is expected to release a detailed report on Project Ubin. The detailed report would help to understand the usage of blockchain for securities and payments. According to a report, Accenture – a tech giant – would be the firm to post the report in 2020.

More firms, industries, and financial institutions are becoming to run to blockchain technology. The adoption of the technology is on the rise, as many are beginning to discover its benefits and potentials.

News Source

Continue Reading
Open

Close