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Bitcoin (BTC) Ethereum (ETH) LiteCoin (LTC) Bitcoin Cash (BCH) Technical Analysis – Bear Market Conditions Persist

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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.

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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.

Happy Trading!!

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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

Bitcoin

Ethereum Flippening Bitcoin In 5 Years?

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Ethereum flippening Bitcoin
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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:

  1. Congestion issues on the network
  2. ICOs cashing out the ETH raised in the ICO boom of last December to late February this year
  3. 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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Bitcoin

Crypto News: What Happened To Bitcoin?

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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.

Why the crazy move in Bitcoin?

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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XRP Rally Lifts Bitcoin and Ethereum

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It’s quite surprising to be writing this, but the XRP rally lifted Bitcoin and Ethereum off yesterday’s lows. As I wrote yesterday in covering Bitcoin, my bullish enthusiasm was dampened by Bitcoin’s $300 drop. XRP rising has given renewed hopes that the lows for the year are in and higher prices are ahead.

XRP Rally

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.

Bitcoin

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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