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Bitcoin (BTC) Technical Analysis: Bear Continues To Wreck Havoc

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Bitcoin
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After a solid countertrend rally in July, which we anticipated and readied readers attention to of Global Coin Report, where Bitcoin generated a nearly 50% return for those whom participated in the move as well as reaching our noted measured move price objective in the 7800-8000 zone, BTC has since found the footing slippery and as a result, has now recently violated its former break-out point located at the 6900 level, which has precipitated further decline.

In our last missive,”Is The Countertrend Rally Over? “, we noted the following, “Moving forward, in order for BTC to ‘get going’ once again and resume its northern trajectory, both investors and traders may want to pay close attention to the 200 day SMA located at the 8440ish level as well as the 8510 and 9020 figures as potential overhead resistance levels to be cleared,” which did not not materialize and was a signal that the recent move may have exhausted.

We also went on to state, “Therefore, while BTC has and remains in ‘better’ technical shape than many of its brethren, and we’re not ready to officially declare that the forecasted countertrend rally is ‘Over’ just yet, we’re beginning to witness some signs that both  investors/traders may need to ‘tighten’ things up and keep their positions on a tight leash”, which has since proven prescient.

With that behind us, let’s take a look at the Chart of Bitcoin to see what may be in store as we move forward.

As we can observe from the daily chart above, Bitcoin is short-term oversold and due for some price relief with BTC registering eleven (11) down days out of the past twelve (12) sessions, constituting severe oversold conditions.

Additionally, we can also see that the primary trend, which is lower, remains in effect as BTC continues to trade below all of its important moving averages (20/50/200 SMA), which portrays and unfavorable technical posture.

However, and perhaps most importantly, with Bitcoin recently having violated the 6900 level on the downside, which acted as the neckline (resistance) on its most recent inverted H&S pattern, which then turned to critical support, such level will now act as formidable resistance once again.

Moving forward, both investors/traders may want to utilize the following levels as a guide in navigating the landscape ahead.

If BTC can get itself going to the upside, which we suspect will occur in the days ahead in order to work-off the oversold conditions, the 6900 level should prove formidable short-term resistance. On the flip-side of the coin, potential short-term support resides at the 6200-6300 zone with minor support at the round 6000 figure as well as the 5700 figure providing more meaningful support.

Nonetheless, the July countertrend rally is officially over and after some short-term price relief, we suspect that Bitcoin and the entire cryptocurrency landscape is in for further downside action before this bear runs its course. In essence, the bear continues to wreck havoc throughout the tape.

We remain in a primary downtrend whereby risk management is imperative, particularly for those whom are trading the short-term blips.

~iBC

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

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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