Bitcoin's low-volatility squeeze has ended with a drop to $9,600
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Bitcoin eyes $9,300
BTC: Price: $9,700 | MCAP: $175 billion | 24-Hr Volume: $16.25 billion
Short-term trend: Bearish
Bitcoin fell by 3.38 percent on Monday – the biggest single-day loss since Aug. 29 as per Bitstamp data – and closed (UTC) well below the lower Bollinger band, confirming a downside break of the low-volatility consolidation.
The bollinger band breakdown indicates the sellers have come out victorious in a close tug of war with the bulls and a deeper drop to August's low of $9,320 could be in the offing.
Supporting the bearish case is the sub-50 reading on the 14-day relative strength index. Further, the MACD histogram is charting deeper bars below the zero line – a sign of strengthening bearish momentum.
The bearish case would weaken if prices move above $10,380 (Sept. 19 high), although that looks unlikely.
Long-term trend: Neutral
Bitcoin's monthly chart shows a double inside bar pattern – August’s candle falls within July's high and low and July’s candle is engulfed by June's high and low.
Double inside bars indicate indecision and lack of volatility and are considered a sign of bullish exhaustion, if they occur after a notable price rally, which seems to be the case here.
Also, the selling volume witnessed in July was the highest since March 2018. So, the long-run outlook stands neutralized.
A break above the high of the first inside bar ($13,200) is needed to revive the bullish outlook and a move below the low of the first inside bar ($9,049) will confirm a bearish reversal.
Traders can also take a weekly (Sunday, UTC) close or consecutive high-volume daily closes above $12,000 as a sign of bullish continuation. After all, a weekly close above $12,000 has remained elusive the last week of June.
For instance, the 50-day MA fell below the 100-day MA on Aug. 29, 2016, when BTC was trading near $570. The cryptocurrency remained flatlined in the next couple of days before rising above $600 on Sept. 4.
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Energi Contesting The Short-Term Trend
NRG: Price: $3.94 | MCAP: $82.3 million | 24-Hr Volume: $3.1 million
Short-term trend: Neutral
NRG has had a strong performance over the last 24-hours and is one of the top performing crypto at CoinMarketCap, up 10.4 percent on the day backed by growing bullish volume. The RSI crossed bullish on Sept. 23 above the neutral 50 zone but is beginning to show signs of exhaustion as it approaches its highest point since August 26.
The broadening falling wedge adds credence for another leg up should volume and momentum reside with the bulls throughout the remainder of the week.
Long-term trend: Bearish
Resistance is firmly set along the 78.6 percent Fibonacci retracement level at $4-$4.15 and presents a considerable barrier that the bulls need to punch through in order to raise a case for continuation in its recent bullish price action. Until such an instance occurs, NRG remains bearish long-term.
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| Ren Dives Deep
REN: Price: $0.0435 | MCAP: $34.6 million | 24-Hr Volume: $2.7 million
Short-term trend: Bearish
A rejection from $0.06 on September 20-21 followed by a swift sell-off over 3 days has seen REN bleed a further 11.68 percent on the day as it struggles to pick up a bid amid the greater crypto market breakdown.
Both the daily RSI and MACD hint at further downside in the coming days should prices fail to stabilize, opening up lower supports located near $0.0381.
Long-term trend: Bearish
The higher high short-term bullish market structure has been undermined by a close below the prior September 18-20 breakout highs which has tarnished chances for a continuation in the long-term lest the bulls drive prices higher beyond $0.0612 by the end of the weekly close.
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With market capitalization of $175 billion, bitcoin is the world's biggest cryptocurrency.
The crypto market leader, however, is still very small compared to national (fiat) currencies, as seen in the above tweet.
Notably, BTC is still far from gold's market capitalization of $7,500 billion. Also, China's yuan is the biggest currency with market capitalization of $28,011 billion followed by the U.S. dollar.
As of now, BTC is bigger than the New Zealand dollar and the Colombian peso.
The data indicates there is tremendous room for bitcoin to grow as a store of value. No wonder, the unconventional monetary policies adopted by the global central banks are considered as boon for bitcoin by the crypto market community.
The market cap of fiat currencies is calculated from M2 money supply, which includes cash and checking deposits savings deposits, money market securities, mutual funds, and other time deposits.
It is worth noting that inflation tends to rise with the money supply. So, the biggest fiat currencies are not necessarily the strongest in terms of purchasing power. |
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| | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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