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EOS/BTC and NEO/BTC Price Analysis: Canary in the Coal Mine?

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EOS/BTC
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While many of the coins that we follow most closely have been mired in a bearish trend for the past month, that trend is also well exemplified by pairs denominated with the Bitcoin base.

For example, as we take a look at EOS/BTC and NEO/BTC, we can see this relative weakness, which is well characterized by the concept of demoralization as non-fiat wallets suffer flight to the relative safety of Bitcoin.

While this demonstrates the internal structure of a new leg of the overall bear market among cryptocurrencies, it may also represent the type of action that we may come to see as a bear market reaching old age, which suggests the possibility of a bullish inflection in the space around the next corner.

EOS/BTC

Price Analysis

  • High: 0.00077533
  • Low: 0.00074088
  • 24-Hour Volume: 190.15K
  • MACD Signal: Sell

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The chart for the EOS/BTC pair demonstrates this shift toward demoralization quite clearly given that EOS was a clear point of relative strength in the complex up until its highs in early May.

The EOS/BTC pair broke beneath both its 50-day and 200-day simple moving averages in step, with the so-called “death cross” appearing earlier this month. Both of these major moving averages are now downward sloped for this pair.

That said, at this point, the chart for this pair has also recently triggered extremely oversold levels on the 14-day RSI. But a closer examination through drilling down to the hourly chart shows a possible inflection in play signaled by a bullish divergence on the hourly MACD followed by a bullish breakout in the histogram for that same indicator last night.

Integrating all of these ideas, the EOS/BTC pair may be a canary in the coal mine for bears on the cryptocurrency space given the oversold levels on the daily chart, the importance of this pairing as a signal about demoralization of animal spirits, and the technical inflection possibly starting to take shape on the hourly chart.

NEO/BTC

Price Analysis

  • High: 0.002738
  • Low: 0.002562
  • 24-Hour Volume: 11.787K
  • MACD Signal: Sell

The NEO/BTC chart is one of the most directional bearish charts that we see for 2018 as a whole, with very little relief for anyone long this pair from the excitement and fervor characterizing the action in January.

At this point, NEO/BTC is trading well beneath its major moving averages and trending lower in what appears to be an accelerating decline. There is chart level support that traces back to the pivot lows formed in December, which lie just below its current levels.

However, with this type of acceleration often comes the prospect of capitulation and the possibility of a snapback bounce. This idea is demonstrated well by the action on the 14-day RSI, which has printed as low as 15 on the raw indicator score over the past 24 hours for NEO/BTC.

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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crypto news
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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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Bitcoin

XRP Rally Lifts Bitcoin and Ethereum

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XRP rally
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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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