Bitcoin
Bitcoin, Ethereum, Litecoin Technical Analysis: Comeback Trail
Bitcoin, Ethereum, and Litecoin are showing signs of price stability. After a strong retracement that commenced in mid-December following the strong run-up of the entire cryptocurrency market which saw Bitcoin hit its all-time high near $20,000 on December 17, 2017, the market seems to have finally found its bottom. The retracement has resulted in the entire market giving back most of the of the gains made during the run-up. Bitcoin, Ethereum, and Litecoin have been trading similarly up over the last 10-days, and the technical on all three are beginning to look promising for a reversal to the upside.
Bitcoin (BTCUSD)
On February 6th Bitcoin hit its local low of $6000.00 approaching a very critical support level of $5806.90. It has since been making higher highs on the daily chart almost every day since then, as can be seen in Chart #1 below.
Chart#1 Bitcoin Daily
Bitcoin has broken above the downtrend line that has formed since its reversal at the all-time high, as seen in purple in Chart #1. Another notable technical indicator is the fact that Bitcoin is now trading above the 9-day moving average with all 4 data points of the daily bar above the moving average. Furthermore, the 9-day moving average is now on an upward trajectory. The next downward price swing will “tell the tail.” If the next downswing stays above $6000 before price turns upward, then a reversal may very well be in progress.
Ethereum (ETHUSD):
As can be seen in Chart #2 below, the price action for Ethereum is almost an exact image of Bitcoin. Ethereum traded to a local low of $565.54, also on February 6, 2018. And just like Bitcoin, it has been trading up almost every day since. It also has broken through its downtrend line and is also trading above a positively sloped 9-day moving average.
Chart#2 Ethereum Daily
One thing that did occur with Ethereum is that it did break through its major support level $679.98. This support level is significant because it is the last price dip the Ethereum made on December 30, 2017, before its price run-up to its all-time high $1424.30 on January 13th. The daily chart shows that price broke below the support level on two occasions (February 5th and 6th), but closed at the end of the trading day above the support level, with strong volume on both days. This is characteristic of a reversal point. As is with Bitcoin, the next downward price swing will confirm if Ethereum has hit bottom and has turned upward.
Litecoin (LTCUSD):
Of the three cryptocurrencies analyzed in this article, Litecoin is showing the strongest indication of a reversal. As can be seen in Chart #3 below, in addition to displaying all the same technical characteristics as Bitcoin and Ethereum, Litecoin has made a strong upward move in the last two days which has broken through its last meaningful upward price swing on January 28, 2018. The next price dip for Litecoin may be a very good long entry point.
Chart#3 Litecoin Daily
The fact that multiple cryptocurrencies are showing indication the crypto market is turning around gives some credence to the conclusion based on technical analysis that a reversal to the upside for the entire market seems likely. But lately, “we have seen this movie before.” For those investors that don’t want to miss the next potential bullish move by the cryptocurrency market, this would be a good time to consider entering the market. However, keep the stops tight.
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.
Image courtesy of coinmarketcap.com
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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