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Bitcoin Eyes $9,000
BTC: Price: $8,520 | MCAP: $152.98 Billion | 24-Hr Volume: $20.91 Billion
Short-term trend: Bullish
Bitcoin clocked two-week highs above $8,700 on Wednesday and looks set to extend gains further to $9,000, having shown resilience following the U.S. Securities and Exchange Commission's latest rejection of an exchange-traded fund (ETF) proposal.
The US regulator on Wednesday announced that the ETF proposal filed by Bitwise Asset Management in conjunction with NYSE Arca did not meet the necessary requirements.
The SEC's rejection, however, failed to move the needle on bitcoin's price. The top cryptocurrency remained bid above $8,500 after CoinDesk reported the SEC's decision at 21:45 UTC and has been restricted largely to a narrow range of $8,500–$8,650 in the hours since.
BTC's resilience has kept the doors open for an extended price rally amid the Fed’s move to expand its balance sheet. Technical charts are signaling scope for a rise to $9,000 in the short-term.
For instance, Bitcoin jumped 5 percent on Wednesday, confirming the impending trend reversal signaled by Monday’s bullish outside-bar candlestick pattern.
The MACD histogram is now producing higher bars above the zero line, indicating a strengthening of bullish momentum.
Further, the 4-hour chart is reporting a double bottom breakout. The short-term bullish case will remain intact as long as prices are holding above the higher low of $8,110 created on Oct. 9.
Long-term trend: Bullish
Bitcoin's long-term outlook is bullish, as mining reward halving is due in May 2020. The bullish case looks stronger if we take into account the strengthening narrative that the top cryptocurrency is a digital gold and a hedge against inflation.
Many observers believe the negatives interest rate era could force traditional investor to pour money into cryptocurrencies. After all, BTC is the best performing asset of 2019 and possibly of the decade.
Technically speaking, the bullish case seems to have weakened following last month's sell-off. Bitcoin closed below $9,049 on Sept. 30, confirming a bearish inside bar candlestick reversal on the monthly chart.
The cryptocurrency had charted consecutive inside bar candlesticks in July and August, indicating indecision or consolidation.
The tug of war between the bulls and the bears ended with a 20 percent drop in September. Further, the weekly relative strength index is now reporting bearish conditions with a below-50 print.
Put simply, the path of least resistance is to the downside and a drop to $7,000 or even lower could be see in the next few weeks. The bearish case would strengthen once the 100-week MA support is breached.
The bearish setup would be invalidated if and when prices find acceptance above the former support-turned-resistance of $9,049.
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Ren Goes Full Ballistic
REN: Price: $0.06 | MCAP: $50.3 million | 24-Hr Volume: $9.1 million
Short-term trend: Overbought
Bullish exhaustion looks set for REN in the short-term after climbing 45 percent over a 3-day period. That theory is backed by an overbought RSI on the hourly chart, coupled with declining bullish volume period-period
Consider a pullback to former supports near $0.05 as the sell-off could extend further on the day.
Long-term trend: Cautiously bullish
Overall, the higher high, higher low market structure enjoyed by the bulls on the hourly chart could come under fire from sellers looking to capitalize on a period of profit taking.
So plan accordingly as the drawdown could extend to prior supports aforementioned near $0.05. Limited exchange data due to being a newly listed coin on the Binance exchange leads to little data for gauging a long-term trend.
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| 0x Tumbles Amid Greater Sell Pressure
ZRX: Price: $0.25 | MCAP: $151.6 million | 24-Hr Volume: $44.3 million
Short-term trend: Pullback
Bullish exhaustion has also set in for 0x after a 30 percent run up over a 2 day period triggered a sharp sell-off on Oct. 9.
The pullback now looks set to deepen toward a former resistance zone, yet to be confirmed as support, backed by the Awesome Oscillator's (AO) declining histogram bars toward the neutral 0 line.
Volume has dropped alongside price which could provide a temporary bullish bounce, but that will most likely be short-lived.
Long-term trend: Bullish
The 4-hour RSI is yet to cap out in overbought territory, indicating long-term growth remains a possibility given its recent higher high market structure breakout on Oct. 8. That pattern of higher highs and higher lows will need to be observed through the remainder of the month if a reversal is to manifest by the time of the monthly close.
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Bitcoin's biggest allure is that it is not issued by any central authority or government and is decentralized.
Put simply, no one actor controls too much of the hash rate or mining power and the ownership is not concentrated in few hands, as seen in the above tweet by Gabor Gurbacs, Digital Asset Strategist and Director at VanECK.
As of July, 25.1 percent of total bitcoins were owned by 1,857 wallets with 1,000-10,000 bitcoins, while 24.7% were owned by 134,694 wallets holding 10-100 bitcoins.
Big HODLers – wallets with 100,000-1,000,000 bitcoins – owned just 2.1 percent of total bitcoins.
Bitcoin ownership is clearly well distributed. However, more than 50 percent of the hash rate comes from China. As a result, bitcoin skeptics often question the decentralized nature of the blockchain. After all, the hash rate would drop suddenly, making the network vulnerable to attacks, if couple of big miners go offline.
That said, the problem of mining concentration is not as severe as it was few years ago, as strong centers have emerged in Iceland and Nordic countries, according to CoinDesk's Noelle Acheson. |
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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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