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Bitcoin Price Under Pressure as Market Slips Below $6,600

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Bitcoin’s tepid recovery has apparently stalled on Wednesday, as the bulls once again failed to push prices above a key technical threshold. The intermediate outlook remains unchanged, though weak trading volumes could undermine BTC’s recent bout of stability.

BTC/USD Update

The price of bitcoin reached a low of $6,513.50 on Bitfinex, having declined more than $200 from its weekly high of around $6,730. At press time, BTC was down 1.1% at $6,591. The digital currency exhibited more volatility than in recent sessions, though daily prices fluctuated within a $150 range. Bitcoin’s daily volatility has been in sharp decline since the beginning of the year.

Low trade volumes are exerting downward pressure on the market. Digital currency exchanges have processed only $3.8 billion worth of bitcoin trades in the last 24 hours. Volumes were down to roughly $3.3 billion over the weekend.

At current prices, bitcoin has a total market capitalization of $113.7 billion, comprising 52.3% of the entire crypto market. Trade volumes across all currencies amounted to $11.6 billion on Wednesday, according to CoinMarketCap.

Bitcoin Implosion?

While most crypto analysts believe bitcoin will one day emerge from its bear market, others aren’t so keen on the virtual currency. An analyst at Juniper Research recently said that 2018 should have been an ideal year for bitcoin to leave its mark. Brexit woes, trade war risks and surging bond yields should have made bitcoin a more attractive substitute for investors looking to diversify away from economic and geopolitical risks. Instead, the complete opposite has occurred and prices are down roughly two-thirds from their peak.

“If Bitcoin cannot make gains in such favourable circumstances, then it is unlikely to prosper as and when these issues are resolved,” Juniper researcher Windsor Holden said in a new study published this week, as quoted by CNBC. “We feel that the industry is on the brink of an implosion.”

Holden’s analysis seems to ignore the many roadblocks preventing traditional investors from accessing the bitcoin market. Institutions have cited regulatory uncertainty and a lack of securitization options for their decision to remain on the sidelines for now. In the meantime, efforts to bring bitcoin to mainstream investors continues to grow with several firms launching custody services and others trying to bundle bitcoin in an exchange-traded fund (ETF).

What’s more, appetite for traditional “risk-on” assets have been notably strong for long stretches of the year, especially in the capital rich U.S. stock market. It was only a few weeks ago that U.S. stocks traded at record highs. Pro-growth optimism tied to President Trump’s policies and strong corporate earnings suggest that a return to record levels isn’t out of the question.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 697 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Crypto Update: Majors Testing Lows Following Broad Selloff

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The major cryptocurrencies have been once again under pressure in the past 24 hours and most of the coins got very close to their recent lows, even as the losses are limited for now. While the top coins avoided a breakdown, given the overwhelmingly bearish long-term picture and the steep short-term trend, odds continue to favor new lows in the coming weeks, so traders and investors should still remain defensive.

Dash/USD, 4-Hour Chart Analysis

The continued technical weakness in the lagging coins, like Dash, and the lack of a relatively strong leadership is still apparent, and it reinforces the bearish overall picture. That is true even as the long-term momentum indicators are showing deeply oversold readings and investors sentiment remains very negative which could lead to a larger scale correction after a short-term trend change. That said, traders shouldn’t enter new positions here until we see meaningful short-term technical improvements.

BTC/USD, 4-Hour Chart Analysis

Bitcoin failed to regain momentum despite the weekend bounce and the coin is back near its recent low trading near the $3250 level today. The key $3600 level is out of reach for the most valuable coin, and with that in mind, our trend model remains on clear short- and long-term sell signals.

The current weakness of BTC is a negative sign for the whole segment, and a test of the key long-term $3000 level is more and more likely. Further string resistance is ahead between $4000 and $4050, and traders and investors shouldn’t enter positions here.

ETH/USD, 4-Hour Chart Analysis

Ethereum has been trading in a very narrow range in recent days, and the coin is still stuck below the key $95-$100 zone, as it failed to show relative strength despite being among the most oversold majors. ETH also faces strong resistance near $120 and $120, with the next major support zone found between $73 and $75, and traders and investors should still stay away from the coin.

Litecoin Breaking Down Again?

LTC/USD, 4-Hour Chart Analysis

Litecoin is threatening with another break below support today, with the $23 support level looking very weak now, and the steep short-term downtrend remains clearly intact in the coin. LTC continues to be relatively weak from a short-term standpoint, and traders shouldn’t consider even ultra-short term positions here, despite the deeply oversold broader picture.

The next major support zone is found between $20 and $20.50 and odds favor a test of that zone as soon as in the coming days, with strong resistance found near $26 and $30.

XRP/USDT, 4-Hour Chart Analysis

Ripple continues to hover around the $0.30 level, still being very weak on the short-term time-frame, and being on sell singles both short- and long-term in our trend model. XRP faces strong resistance near $0.32, $0.3550, and $0.3750, while primary support is found at $0.28, with the prior bear market low being at $0.26. We expect at least a test of the lows in the coming weeks, despite the still relatively strong long-term technical setup and new low bear market lows are also likely in Ripple.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 415 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Bitcoin

Bitcoin Price Hits New Yearly Low; Now is Best Time to Buy, Says Weiss Ratings

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Bitcoin was back on the defensive Friday, as prices sunk to new yearly lows following a minor consolidation earlier in the week. As Hacked recently reported, the bears are making a run at the psychologically significant $3,000 support and are likely to test that level in the near future.

BTC/USD Update

The bitcoin price is currently trading around $3,250 on major exchanges, having previously set a new 15-month low. On Coinbase Pro, BTC/USD bottomed near $3,200 late Thursday before quickly recovering near $3,300. Over the next 12 hours, prices would consolidate in the mid-$3,200 range. The leading digital currency printed similar levels on Bitstamp, Bittrex and Gemini. A premium of $100 was seen on Bitfinex, where bitcoin was trading hands around $3,350.

Aggregate data courtesy of CoinMarketCap show an average price of $3,305 at the time of writing. That represents a decline of 3.8% over the 24-hour trading cycle. With the drop, bitcoin saw its total market capitalization fall below $58 billion.

Daily trade volumes picked up slightly, reaching $4.4 billion on virtual currency exchanges. BitMEX was by far the largest market, processing nearly a quarter of transactions.

Bitcoin futures contracts offered by CME Group recorded a daily volume of 1,317 contracts. CBOE bitcoin futures registered 1,136 contracts. Over the past five days, both products had an average volume of more than 2,300 contracts.

Like bitcoin, the broader cryptocurrency market was also approaching new lows for the year. The combined cryptocurrency market cap reached a low near $104 billion, which is slightly higher than last week’s bottom.

Time to Buy is Now

Amid the search for an elusive bottom in the bitcoin price, a U.S.-based rating agency believes now is the best time to buy the digital currency anyway. According to Weiss Ratings, current prices reflect bitcoin’s “least speculative investment,” making it an ideal time to increase one’s holdings of the cryptocurrency. This is based on the belief that cryptocurrencies like bitcoin are “here to stay.”

Bitcoin “is getting to such low levels that it’s becoming one of the best buying opportunities of the year,” the Florida-based rating agency tweeted earlier this week. “As a store of value, Bitcoin is here to stay. We truly think it’s the least speculative investment a person can make in crypto right now.”

Weiss is no stranger to cryptocurrencies. Earlier this year, it issued the first-ever public rating of cryptocurrencies, ranking 74 blockchains along several criteria. At the time, EOS and Ethereum were the only assets to receive a “B” rating. No cryptoasset was given an “A.” Bitcoin, despite being the largest and most influential cryptocurrency, received a rating of “C+.”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 697 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Crypto Update: Bear Market Lows in Jeopardy After Latest Failed Bounce

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The cryptocurrency segment switched directions yet again, as, after a weak bounce on Wednesday, the major coins are headed back towards their recent bear market lows today. While the losses are not significant, for now, given the bearish long-term picture and the vicinity of the lows, another leg lower in the downtrend could soon begin, despite the deeply oversold long-term momentum readings.

The majors are all in the red amid the broad selloff and only a few of the battered altcoins are showing some relative strength in the face of the apparent selling pressure. The total value of the market is back below $110 billion, and a dip below the $100 billion mark is possible as soon as the coming days, with Bitcoin being among the weakest top coins in the past few days.

Volatility has been steadily decreasing ever since last week’s breakdown, but we expect trading activity to pick up somewhat ahead of the weekend, and traders should remain cautious here given the still broadly negative technicals.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is trading just above its recent lows despite yesterday’s rally attempt, and the coin is showing relative weakness hinting on an imminent test of the lows. That said, with the long-term momentum readings clearly being oversold, we could still be in for a larger scale bounce in the coming weeks, but traders should wait for signs of short-term strength before entering new positions.

Our trend model remains on sell signals on both time-frames, with strong resistance levels zones ahead near $3600 and between $4000 and $4050, and with key long-term support found near the $3000 level.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still stuck below the key $95-$100 zone as yesterday’s bounce faded but the coin is trading above its bear market low, performing in line with Bitcoin and the majority of the segment. ETH is still in short- and long-term downtrends, and our trend model is on sell signals on both time-frames as well, despite eh oversold long-term picture.

Odds still favor a move towards the next key support zone between $73 and $75, and traders and investors shouldn’t enter positions here, with further strong resistance zones ahead near $120 and $130.

Altcoins Drift Lower Across the Board

IOTA/USD, 4-Hour Chart Analysis

We are still not seeing signs of meaningful relative strength even among the smaller altcoins, as although some of the most oversold currencies are, in fact, holding up well above their recent lows. IOTA is still a prime example of the long-term weakness, as it got stuck below the resistance zone surrounding the $0.24 price level despite the recent bounce attempts, while also remaining in a clear broader downtrend. For now, the prior low just above $0.20 is safe, but new lows are still likely in the coming weeks.

XRP/USDT, 4-Hour Chart Analysis

Ripple has been trading with very low volatility in the last couple of days, hovering around the $0.30 level. The coin failed to show relative strength amid the bounce attempts, and break below last week’s lows and a test of the bear market low near $0.26 still seems likely, with the sell signals being in place in our trend model on both time-frames.  XRP faces strong resistance near $0.32, $0.3550, and $0.3750, while primary support is found at $0.28

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 415 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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