Bitcoin continues to be the leader of the pack while Ethereum and altcoins can’t make a move. Just this morning we witnessed Bitcoin blast through the 7350 double top on the daily charts. That spot was just too tempting for Crypto Arthur Hayes to run Bitcoin higher and hit all the shorts stops on BitMex.
Bitcoin shorts keep coming
Over a two day span, the shorts built their positions from 22k from 34k. In all my time trading Bitcoin, I’ve never seen such a large buildup in short positions in such a short amount of time. The shorts have been rather relentless this year and must have been certain that Bitcoin was going lower after the 7350 resistance wall held firm.
It seems this year that many are still betting on the Bitcoin seeing $5000. I believe that the bears had their chance this year when Bitcoin tested $5700. That strong support held and now we are sitting at $7400. I have been saying that Bitcoin is to be bought below $6500. Now that we are above $7300, us HODLers have to let things play out. While the bears will not go down without a fight, the momentum is with us bulls.
Ethereum is depressing
The talk among the Crypto Twitter universe this weekend was the article titled “The Collapse of ETH is Inevitable” by Jeremy Rubin. While I am not technologically savvy enough to determine whether there’s merits or not, I instead focus on what others are saying. The most interesting in my opinion came from Paul Everton who had an interesting response to Vitalik Buterin’s own rebuttal.
Remarkable. Vitalik Buterin says that with the current system $ETH will go to zero. But he'll save it by changing everything about the protocol. Ethereum fans don't want an open financial system, they just want $ETH to go up. pic.twitter.com/nbLCkpjTB5
— Paul Everton (@realpauleverton) September 3, 2018loading...
For me, I’m a trader and not a technologist, so I can only speak from a price perspective. Looking at the price of Ethereum and there is nothing to get excited about. While I am bullish Bitcoin, I believe Ethereum is heading lower. The Ethereum market is very weak and rallies are not sustainable. The ETH/BTC price keeps heading lower and I have no confidence that the market will turn. Here’s the daily chart for ETH/BTC.
I expect Bitcoin to continue strengthening and that will put further pressure on Ethereum. Bitcoin has in effect became the safe haven for crypto traders. Articles on the death of Ethereum are not helping improve investor sentiment at the moment and while ETH is not a falling knife, it is at least a constant paper cut for those trying to pick the bottom. Unfortunately, I am an ETH HODLer and just watching the slow bleed take hold.
The next levels I am watching for Bitcoin are 7440 and then 7500. If we break above 7500, look for the market to test 7800 then 8000. I don’t expect it to be violent as we are not seeing the huge candles like before. I think Crypto Hayes just keeps running stops and gives the shorts enough confidence to come in and short again, only to be squeezed further at a later date of Arthur’s choosing. Overall, it is fun watching and I expect higher prices this week.
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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. This author is long Bitcoin and Ethereum.
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:
- Congestion issues on the network
- 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…
Crypto News: What Happened To Bitcoin?
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.…
XRP Rally Lifts Bitcoin and Ethereum
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.
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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