Over the last week or so, most of the cryptocurrencies have been trading downward off of sustained uptrends that have seen many of the cryptocurrencies including Bitcoin, Litecoin, Ripple, and Ethereum make extraordinary gains.
Even though the cryptocurrency market is traded throughout the world, 24-hours a day, 7-days a week, it seems that a cryptocurrency wide market correction is taking place amid the Holiday season in the United States.
With the U.S. market accounting for a large portion of the overall trading volume in the cryptocurrency market, the volume indicators on most of the heavily traded cryptocurrencies are showing a significant decrease in trading activity.
The lack of volume, along with the extreme overbought conditions that the market has been exhibiting lately, may account for the sudden price reversals that are forming throughout the market.
Ethereum made its last all-time high of $870.00 on December 19, 2017, resulting from a strong surge in price following an important announcement by UBS that they will head an Ethereum-based Blockchain initiative along with Barclay’s, Credit Suisse, KBC, Swiss stock exchange SIX and Thomson Reuters.
The initiative is designed to help these companies comply with new European Union trade data standards that go into effect in 2018.
Since then Ethereum has retraced as far down as $501.00 on December 22, 2017, and is now in the midst of a recovering, currently trading at $754.00 at the time of this analysis (Refer to Chart #1 below).
Chart #1: Daily Price Chart
Ethereum is currently showing strong signs of a classic head-and-shoulder reversal pattern.
Several other cryptocurrencies including Bitcoin, Litecoin, and IOTA are exhibiting similar reversal pattern characteristics.
The fact that this phenomenon is not limited to Ethereum is highly indicative that the cause of the reversal pattern(s) is being manifested from something that is being driven by the market as a whole, as opposed something that is affecting each individual cryptocurrency differently.
In this case, the lack of volume is currently the common theme among the cryptocurrencies, and most other markets during the holiday season.
Chart #2: 15-minute Chart
The 15-minute chart shown above (Chart #2) clearly shows a significant decrease in volume.
Also shown is the resistance level that Ethereum is currently trading.
This resistance level is key to the completion, or disruption, of the head & shoulders pattern that is potentially emerging.
If price breaks through and makes new highs, then the pattern fails.
However, making new all-time highs usually requires higher than average volume; something that will probably not be seen until after the new year. If the resistance level holds, then the head & shoulders pattern may come to completion, and a further retrace may take place.
We will be watching closely.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Duncan Rawlinson via Flickr
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
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Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.
In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.
For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750.
Beyond leverage, Wisebitcoin additionally offers a simple and…