For the past six (6) months it’s been no secret that Bitcoin HODLers have found the environment both challenging as well as the footing slippery as prices throughout have continued to slide the slope lower.
This past weekend, both investors/traders were treated to yet another leg lower on large volume, which produced a sharp and violent move to the south-side and in the process, taking-out/breaching some very important short-term support levels across the board.
While recent price action has produced short-term oversold conditions and we can perhaps anticipate some pause as well as some price relief in the days ahead, we must remember that oversold conditions can and often do, become more oversold just as overbought conditions can often lead to further price appreciation beyond what many investors/traders expect/anticipate.
Thus, while we certainly suspect that both investors/traders within the crypto sphere will be treated to some pause and or short-term price relief in the days ahead, we must always defer our opinions and biases to the action of the market as Price is the only thing that Pays.
That being said, let’s take a look at the charts to see what may be in store moving forward as well as some levels to monitor in order to navigate the landscape without detonating the triplines that litter the field.
After touching down at the 7K level a couple of weeks ago and subsequently grinding higher, Bitcoin (BTC) was unable to clear our previously noted 7730 level and ‘stick’. Once that became apparent, and it was rather quite obvious as BTC attempted to clear the hurdle on multiple occasions only to fail, such was the signal that the likelihood of lower prices were in the offing, which has now played-out.
Moving forward, both investors/traders may want to monitor the following levels for further clues/evidence with respect to direction.
If, at any time in the days ahead, BTC can go top-side of the 7040-7060 zone and perhaps, more importantly, can clear the noted 7260 figure (former support now turned resistance), such development/s, should they materialize, would release some short-term pressure. On the opposite side of the ledger, potential short-term support can be found at the 6425 level and should such level ‘give-way’ at any time in the days/weeks ahead, a date with the February lows at 6K would certainly be in the cards.
Much like BTC, Ethereum (ETH) found itself having trouble with our noted 615-630 zone and was unable to jump the creek, which promptly turned the tables southbound as we can witness from the Chart below:
As we can observe above, despite several attempts at clearing the 615-630 zone and incapable of holding, proved too much for ETH as it promptly reversed course for lower depths.
Moving forward, short-term potential resistance can be found at the 538 as well as the 575-600 zone, while potential support resides at 480-500 area. Should the 480-500 area ‘give-way’ at any point in the days/weeks ahead, the probability of a move into the 350-400 zone becomes a viable possibility.
Moving on to LiteCoin, despite its short-term oversold posture, LTC remains extremely vulnerable as it has violated all of its potential short-term support levels and is hanging by a thread. While a bounce may be forthcoming in the days ahead, it appears that a date with the 80-85 zone is indeed its ultimate destination down the road.
As we can witness above, LTC has taken-out our noted 109-112 zone and now finds itself with little support or net beneath its feet. While a bounce into the 115-120 zone may relieve some short-term pressure, we suspect that the 80-85 zone may provide its best line of defense (potential support) moving forward.
Last but not least, let’s take a look at Bitcoin Cash below to see what it may have in store for both investors/traders moving forward.
As we can observe from the chart above, while the recent move lower in BCH was sharp and deep accompanied with volume, it did not hit nor violate the May lows located at the 868-870 level.
Thus, moving forward, both investors/traders may want to pay particular attention to the 840-870 zone as well as the February low 750 area for potential support, while the 1000-1035, as well as the 1075-1085 zone, provide likely headwinds/resistance above.
While market participants may enjoy some price relief from short-term oversold conditions in the days ahead, we must remember that bear market conditions persist throughout the entire cryptocurrency universe and as investors/traders, we have to leave our opinions/biases at the door and take our cues from the action.
If one is trading this environment, be sure to keep positions on a tight leash and honor Your Stops as risk management is priority number one, as always. For those longer-term investors, patience and discipline are in order and you may want to continue to monitor your favorites for suitable entry and or adding to existing positions.
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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
Importance of Bitcoin ETFs and Bakkt for the Crypto Space
It is no secret that 2018 was a very bad year for cryptocurrencies, at least when it comes to prices and market cap. However, in its brighter moments, this year managed to set the stage for some very important events that are expected to make 2019 very successful and profitable. Two things have attracted the most attention, both of which were expected to occur in 2018, only to be moved for early 2019. Those two are Bitcoin ETF decision by the US SEC, and the launch of Bakkt.
What are Bakkt and Bitcoin ETFs and why are they important?
Let’s start with Bakkt first. Bakkt Exchange is a business that is set to launch at the very beginning of 2019. It is a cryptocurrency platform that is set to offer a large number of services, including things such as warehousing and trading. However, there is another thing that makes Bakkt special, and that is the fact that the exchange itself is a product of the same company that has created the New York Stock Exchange.
In addition, Bakkt will be supported by some very influential names, such as Microsoft, BCG, and even Starbucks, to name a few. Furthermore, Bakkt will support crypto-to-fiat conversions. Starbucks will actually be one of the companies that have volunteered to help test the system, as users will be able to convert crypto to…
SEC Postpones Bitcoin ETF Decision Once Again
The new announcement by the US SEC (Securities and Exchange Commission) states that the decision regarding the potential approval of several applications for a Bitcoin ETF (exchange-traded funds) is once again postponed. This time, the SEC declared that the decision will be made by February 27th, 2019.
The application requesting that VanExk SolidX BTC fund get s listed on Cboe BZx Exchange that was published on July 2nd needs to be given order by the commission within 180 days. Originally, the deadline for doing so was December 29th. However, the SEC decided to extend the period for another 60 days, effectively moving it to February 27th.
The SEC stated that designating a longer period for making a decision was found appropriate, as more time is needed in order to properly consider the rule change.
Cryptocurrencies need a sufficient monitoring mechanism, claims SEC chairman
Recent reports claim that the SEC received over 1,600 comments after requesting the public opinion regarding the ETF applications issue. In the past, the SEC rejected many such applications, some of which were even submitted by SolidX itself. In addition, they also rejected the applications submitted by Gemini, the exchange owned by Winklevoss twins. Brothers were attempting to gain ETF approval ever since 2013, although to no avail.
Other applications were also submitted by Direxion, ProShares, as well as GraniteShares. The SEC rejected them all,…
What to Expect in 2019: BTC, BAT, and Steem
There are only a few weeks of 2018 left, and considering how bearish and crypto-unfriendly this year was, a lot of investors will likely be pleased to see it gone. Many believe that 2019 will be the year that will correct BTC prices and bring forth the period of great recovery.
But what does that mean for digital currencies? Which ones are a good investment right now? This is something that we will, hopefully, be able to answer right now. Here are the top 3 coins that everyone should keep an eye on in 2019.
1. Bitcoin (BTC)
Of course, we have to start with Bitcoin, the first and largest cryptocurrency. Bitcoin has lost a lot in 2018, and its losses are unparalleled by any other coin. In fact, in terms of market cap, Bitcoin has lost as much as the rest of the crypto market put together.
Many believe that its rapid growth, which started in late 2017 and has brought it to its all-time high, is responsible. That the bearish 2018 was only a one large price correction of the last year’s price surge. Even if this is true, price corrections, luckily, all end sooner or later, and when this one comes to a close, Bitcoin will likely be ready for a big comeback.
2019 is expected to bring a lot that will serve BTC’s rise…
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