Bitcoin / US Dollar
Price Analysis
Price Analysis : BCH is The Contrarian of The Day, Will The Rest of Cryptos Continue to Drop?
A small correction appeared today in the market as Bitcoin's price dropped around $100 and landed at $13,300. The point is still higher than any other support level at the current and we have to dig up back in the past to find out possible support or transit levels where the price had moved in the same way. As we can see from the diagram below, a possible stop around $13,000 might cancel the bearish thoughts for some investors. This first stop will make the market to concentrate its powers again and enable the price to move at stability mode until there is another opportunity to grow further.
The pessimistic scenario for Bitcoin's case is the price to drop in the previous high levels, around $12,000, and after a while to drop again in the stable zone, just above $10,000 and maybe a little below it. The pessimistic scenario makes the market return to the previous levels and will enforce the economic cycle to be created again from the start. This is a normal reaction for a traditional financial asset but we can have seen several things happen in the crypto market. The trading volumes continue to remain at high levels, indicating that investors are still engaged in the market and have not abandoned the ship.
In both cases, the optimists and the pessimists will become true at some point in history but the most important thing for investors is to be prepared for every scenario that might occur and make corrective moves in their portfolios. As we always embrace, the cryptos are here to stay and holders never lose in the long-term.
In the short-term diagram, we can observe that the small traceback from today's session seems to be nothing important at the end of the day, as we have observed even worst days in the past, especially after hitting a high level and a continuous bullish market. This drop will be shaped in the next sessions as we will see more about the future price formation.
Indicators
MACD index continued to remain at positive levels, showing that the market momentum is still possible to turn up and continue the bullish trend once again. On the other hand, the RSI index dropped to value = 70, showing that the correction is probably to continue over the next days and will shape the price accordingly.
Ethereum / US Dollar
Price Analysis
Ethereum's price dropped below the $400 support level, reaching $390. The bearish trend might be closer for Ethereum than in other cryptocurrencies as the price has been considered overvalued, even during the previous bullish round last August. Ethereum has not shown enough momentum in the current bullish market, a fact that weakens its position when the entire market will shift to more bearish positions.
It is possible to see lower prices during the next days and we hope that support levels in lower values will determine how fast the recovery will take place. The first support level can be described from the stop that Ethereum made during the current bullish trend around $370. If this support level doesn't work, then there is another support level of $350, which is aligned with the long-term support trending line.
The long-term descending line derives from the start of the bullish trend and enabled the price to move in the bearish trend, without losing much value in the meantime. We can see that there is no significant difference in the trading volumes while the two moving averages have a difference of $15, a fact that could implement many theories behind it.
Indicators
MACD index is moving to value = 1, showing that the growth in the Ethereum market is slowly adapting to the overall trend and tends to shrink during the last days. On the same page, the RSI index moved to value = 50, predicting a certain level of stability for the next days.
Ripple / US Dollar
Price Analysis
Ripple remained stable for another day, following steadily the $0.25 point for the last week. The close boundaries, where the price can move, are between $0.24 and $0.26 at a first glance. If there is a move beyond those levels, either positive or negative, we can say that there is a clear trend in the market. As we always say, a compression in the price leads to a new trend-setting.
It is extremely difficult to predict whether Ripple's price will go up and down after this period, as the entire crypto market is on a transition point, from bullish to correction mode. This means that whenever Ripple decides to wake up and move towards a certain position, it will face a challenging environment that will not help it to establish a certain direction and it will decrease in investors' preferences.
As we can see, the trading volumes are very low and a surprise move will shock the market and make the market implement shock tactics to calm down the audience. The moving averages are possible to cross again, creating another reverse "Golden Cross", eradicating the previous bullish signal in the market.
Indicators
MACD index turns to zero again, showing that the market has no clear evidence about what will be the next direction for the next days. Similarly, the RSI index is at value = 50, showing the same things for the Ripple market and its next moves.
Litecoin / US Dollar
Price Analysis
A very important support line at $57 is the key to the current situation in the Litecoin market. This particular support level is the frontier that makes clear if the market is on a bullish trend or it is moving in at a corrective mood. If the bulls win the fight, we will observe this level to hold and create another bullish trend.
If the correction trend continued to exist, then the $57 support level will break and the next stop will be around $50, where there is a lot of market depth to absorb this kind of bearish trend. The trading volumes are still at high levels (just like Bitcoin), indicating that investors have not to abandon Litecoin and are still active in the buying and selling process. The moving averages are still way apart, showing no fear for overthrowing the bullish momentum.
Indicators
MACD index is still moving in the positive zone, confirming what we told in the previous section. In parallel, the RSI index moved in the "safe" zone, indicating that the correction might continue for some time before hitting the road for higher price levels.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash was the only exception today in the crypto market, that rises and reaches a previous level in the current bullish trend. The price reaches $280, showing that the bullish trend might continue for a little bit more. The optimistic scenario indicates that the price will grow up to $300, growing independently from the rest of the market. The pessimistic scenario indicates that the price growth came as a delay from the market leader and it will collapse in some days.
The trading volumes remain at a high level, indicating the investors' interest while the moving averages are still apart from each other.
Indicators
MACD index moved again to higher positive levels, showing that there is still momentum in the Bitcoin Cash market while the RSI index moved to value = 65, showing that there is a little more room for growth during the next days.
Correlations
Bitcoin / Ethereum = 0.80 (- 0.10), Bitcoin / Ripple = 0.21 (- 0.10), Bitcoin / Litecoin = 0.82 (- 0.09), Bitcoin / Bitcoin Cash = 1.00 (+ 0.18)
Every single cryptocurrency falls today, giving the image of a decomposing market, which is very fragile and easy to hurt from external events. Ethereum, Ripple, and Litecoin lose from 10 points in the correlation measurements, making Ethereum and Litecoin move towards the "medium" correlation zone, while Ripple moved again in the "weak" correlation zone. The only exception in the market was Bitcoin Cash, which achieved a "perfect" correlation with Bitcoin, as the last 21 days (the correlation data) seems to have the same results in the ups and downs. This means that Bitcoin will drive its price more easily in the next period, along with Bitcoin, comparing to the other cryptos in the market.
Key Notes For Today
The market and mostly Bitcoin started to correct slightly
Ethereum and Litecoin tried and saved some support levels
Ripple remained on the same price levels
Bitcoin Cash was the winner of the day, contrasting the rest of the market
Comments (7)
Guest
freshprinx
6 years ago
The price of Bitcoin go bearish below $13,000 on Wednesday, but despite the 7% drop in 11 hours, the market sentiment remains positive for three key reasons.
The same today Oct. 28, price of Bitcoin (BTC) go down below $13,000 shortly after hitting $13,850 at the day’s peak. Despite the 7% drop in 11 hours, however, the market sentiment remains positive for three key reasons.
First, Bitcoin is still at where it was on Oct. 27, merely 24 hours ago. Second, BTC rose to $13,850, right below a multiyear resistance area at $13,873. Third, a marketwide drop was expected due to declining stablecoin inflows into exchanges.
Bitcoin drops to where it was yesterday
In the last two days, the price of Bitcoin rallied 8.5% from $13,783 to $13,850 on Coinbase. The move came after a month-long uptrend during which BTC rose from around $10,200 to $13,850.
Now, on high time frame charts — like the daily chart, for example — BTC price is hovering above a key short-term moving average.
The recent pattern of Bitcoin following up each uptrend with a consolidation phase makes the ongoing rally sustainable.
The strength of the spot market over the derivatives market also indicates that the uptrend is strong and healthy. A pseudonymous trader known as “Byzantine General” said:
“A higher spot price & higher spot volume (relatively speaking) is considered bullish because it means that the rally is based on actual buying instead of degenerates gambling on derivatives.”
The $13,873 level is a multiyear resistance area
Bitcoin peaked at around $13,900 in July 2019 across major exchanges. As Cointelegraph reported, many traders pinpointed the $13,875 level as the pivotal resistance area in the short term, partially for this reason.
If BTC had continuously risen beyond $13,875 without any pullback, it would have caused the rally to become massively overheated. In the medium term, that would have raised the probability of deep pullback, or as some on-chain analysts call it, a “hell candle.”
BTC decline coincided with lack of stablecoin inflows
Prior to the short-term correction of Bitcoin, CryptoQuant CEO Ki-Young Ju warned that stablecoin inflows into exchanges were declining.
The inflow of stablecoins is an accurate metric to gauge buyer demand because stablecoins, like Tether (USDT), account for a large portion of the cryptocurrency market’s volume.
According to CoinMarketCap, the daily volume of Tether exceeds $59 billion across major exchanges. Purely in terms of daily volume, Tether is the most traded cryptocurrency in the global market. A few hours before the BTC drop occurred, Ju tweeted:
“Fewer people are depositing #stablecoins to exchanges. BTC Buying power is weakening in the short-term(72h).”
The drop in stablecoin inflows might have triggered a sharp Bitcoin pullback because buyers and sellers were intensely battling over the past week. Some miners and whales were selling, while new inflows continuously offset the selling pressure.
visiblemoney
6 years ago
The Bitcoin only dropped a little $100 to maintain $13,300 position amidst pessimistic and optimistic opinions. But in both cases, long term holders have nothing to lose because crypto is here to stay already.
Also, Ethereum dropped a little below $400 support levels. Ripple has been stable at $0.25 and price can go up any further. Litecoin also maintains its $57 support level but the most outstanding performance is experienced with BCH which achieves $280 with a more progressive bull that can launch it to $300 perhaps!
godgrace1
6 years ago
Am still amazed with the fact that bitcoin was able to hold its position at the $13,300 even after market correction, bitcoin is currently experiencing price action between $13,000 and $13,350, other altcoins are being pulled by the bear market after the market correction happened, bitcoin cash seemed to be having a little momentum with the bull market, but i dont think it will be for long, because a believe that the bitcoin market will still experience bearish movement and go below $12800 before the next bullish run will occur.
exodusab
6 years ago
The failure of the bears to sink Bitcoin Cash (BCH) back below the 20-day EMA ($234) showed a lack of selling pressure at lower levels. Traders viewed this as a buying opportunity and propelled the price above the overhead resistance at $242.
The moving averages are about to complete a bullish crossover and the RSI has risen above 68, which suggests that the bulls are in control. They will now try to push the BCH/USD pair to $280 and above it to $300.
However, the bears are unlikely to give up easily. They will make one more attempt to drag the price back below $242 and the 20-day EMA. If they can pull it off, it will indicate that the current breakout was a bull trap.
ugospecial
6 years ago
BITCOIN PRICE ANALYSIS: BTC's price dropped around $100 and landed at $13,300. The point is still higher than any other support level at the current and we have to dig up back in the past to find out possible support or transit levels where the price had moved in the same way. The pessimistic scenario for Bitcoin's case is the price to drop in the previous high levels, around $12,000, and after a while to drop again in the stable zone, just above $10,000 and maybe a little below it, the pessimistic scenario makes the market return to the previous levels and will enforce the economic cycle to be created again from the start.
ETHEREUM PRICE ANALYSIS: ETH price dropped below the $400 support level, reaching $390. The bearish trend might be closer for Ethereum than in other cryptocurrencies as the price has been considered overvalued, even during the previous bullish. The first support level can be described from the stop that Ethereum made during the current bullish trend around $370. If this support level doesn't work, then there is another support level of $350, which is aligned with the long-term support trending line.
RIPPLE PRICE ANALYSIS: Ripple's price followed steadily the $0.25 point for the last week. The close boundaries, where the price can move, are between $0.24 and $0.26 at a first glance. If there is a move beyond those levels, either positive or negative, we can say that there is a clear trend in the market. whenever Ripple decides to wake up and move towards a certain position, it will face a challenging environment that will not help it to establish a certain direction and it will decrease in investors' preferences.
LITECOIN PRICE ANALYSIS: $57 is the key to the current situation in the LTH market. This particular support level is the frontier that makes clear if the market is on a bullish trend or it is moving in at a corrective mood. If the bulls win the fight, we will observe this level to hold and create another bullish trend. If the correction trend continued to exist, then the $57 support level will break and the next stop will be around $50, where there is a lot of market depth to absorb this kind of bearish trend.
BITCOIN COIN CASH: BCH price rises and reaches a previous level in the current bullish trend. The price reaches $280, showing that the bullish trend might continue for a little bit more, The price reaches $280, showing that the bullish trend might continue for a little bit more. The optimistic scenario indicates that the price will grow up to $300, growing independently from the rest of the market.
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