Bitcoin (BTC) is travelling below immediate resistance $6,400 (68.2% Fibonacci).
Bitcoin Cash (BCH) price fell below $700 and continues to sport a bearish trend.
- High: $6345.3 USD
- Low: $6286.3 USD
- Major Resistance Level: $6400
- Hourly MACD: Placed slightly in the Sell zone.
At the time of writing, Bitcoin (BTC) had already dropped well below the $6400 USD level to $6345.3 USD and the market sentiment is largely bearish. (As of 11th July 2018) The price action of BTC/USD pair, as observed from the chart, shows that it had started falling after a slight upward movement over the weekend, and had dropped yesterday from nearly $6696.06 to almost $6307.64. Comparatively, the cryptocurrency is trying to recover a little bit today with approximately 0.69% (24h) rise at the time of writing.
The price of Bitcoin had dipped below $6000 level by the end of June but, the bulls had taken over at the beginning of July. This had given a little hope to the investors. As can be seen on the chart, it was quite close to the $6800 level but the price movement had trespassed the support areas at $6600 and $6400. Even though the declines seem to have paused above the 50% Fibonacci retracement, there seems to be another rising wedge pattern that may end in more declines in the medium-term.
Bitcoin Cash (BCH/USD)
- High: $688.2 USD
- Low: $84.7 USD
- Major Resistance Level: $735
- Hourly MACD: Very slowly moving towards the Bullish zone.
The price of BCH/USD pair is experiencing a major bearish trend and has gone beyond the $700 level. Even if the pair corrects in the short-term it is still unsure whether the price will move to create a major uptrend. Yesterday, the Bitcoin Cash market had experienced a sharp downfall in price, from a little above $750 to nearly $684. The price of Bitcoin Cash at the time of writing shows $688.2 USD while the market tries to recover a little, nearly 0.15% (24h) increase. (As of 11th July 2018)
According to the chart, resistances have formed above the $706 level with $710 (previous support) being a key barrier at the moment. Chances are there that the price of the BCH/USD pair can move beyond the $710 level. The major resistance is formed at the $735 level based on the hourly chart and the same trend line is quite close to the 50% Fibonacci retracement level. As the 100 hourly SMA is positioned near resistance line $735, if the price moves uptrend and reaches the level then it is more likely to face some challenges. The upside is that if the price steadies itself above the $710 level there is a chance of formation of a stronger uptrend. It is also to be seen how the news of the upcoming Bitcoin Cash hard fork in November 2018 (released today) will affect the market.
The Fibonacci retracement levels for both Bitcoin and Bitcoin Cash at the moment shows there is still a chance of recovery for the crypto coins and move into the bullish zone.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com
Ethereum Flippening Bitcoin In 5 Years?
The dominance of Bitcoin (BTC) in the crypto markets due to the bear market, currently stands at 55.2%. Ethereum’s dominance is a distant second at 10.8% of the total cryptocurrency market capitalization. This is despite the fact that the value of ETH is still shaky with many traders postulating that it could get worse for the digital asset before it gets better. Ethereum’s decline has been blamed on three factors outlined below:
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- ICOs cashing out the ETH raised in the ICO boom of last December to late February this year
- Traders shorting ETH due to the above two reasons
Ethereum Flippening Bitcoin?
In a tweet on the 18th of September, Weiss Ratings stated that ETH will grab 50% of Bitcoin’s market share in 5 years. Doing the math, this means Ethereum flippening Bitcoin in the markets with a dominance that will be around 38%. BTC would be at half its current value, and at 27.6% of the total crypto market cap.
The full tweet from Weiss Ratings would go on to explain why this would happen:
“#Bitcoin will lose 50% of its #cryptocurrency market share to #ETH within 5 years, due to it offering more uses and being backed with superior #blockchain technology. We completely agree – unlike #BTC, which is a one-trick pony, the limit of…
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The crypto news of the day is what the heck happened yesterday in Bitcoin? In a matter of 2 hours, we saw the Bitcoin price go from 6320 to 6080 on Bitmex and then rocket higher to 6580. In the process, stops were cleaned out for both longs and shorts.
For all of 2018, Bitcoin has been a perfect vehicle for swing traders. The market has been playing support and resistance levels perfectly. The play has been to buy Bitcoin around the 6000 level and sell above 7000. Until this pattern changes, it’s what traders and investors need to keep doing. Yesterday’s price action, while crazy and extreme, does still support this strategy.
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There are a number of thoughts as to why Bitcoin made the move that it did. They are technical related and don’t involve a fundamental reason. The first is that there are bots on Bitmex that go hunting for stops. The bot utilizes inside knowledge of where the orders are clustered. If the bot can move the market to where the stops are, it can get filled.
The second is that yesterday was the expiration of the CBOE futures contract. I am an ex-futures trader (now crypto) and know that expiration days can see some crazy moves. This is because it’s the last day to close a position on that futures contract.…
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The most frustrating part about the XRP rally was the news put out by our competitors. We read the XRP rally was due to xRapid launching soon and also that a major Saudi Arabian bank had joined the Ripple network for international payments. I’ve been trading cryptocurrencies long enough to know that no one knows the exact reason why something happens in the market. This is a major buy spike that came out of left field.
I am certainly feeling better about Bitcoin now than I was 24 hours ago. The lack of volume and the price action felt like the market was heading lower. Today, however, we are back around the 6350 levels.
The problem is that it still not enough to make me buy more Bitcoin. We are still in the middle of the range between 6100 and 6500. This neutral zone is not an area that I want to be putting on trades. Yesterday’s jump was indeed positive, but need proof that it was not…
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