Alex Morris

Bloomberg’s Analyst Predicts Tough 2019 for Bitcoin

While many have high hopes for 2019, Bloomberg’s technical analysis shows that the prolonging bearish trend is far from over
Bloomberg’s Analyst Predicts Tough 2019 for Bitcoin
Contents

While Bitcoin is on the cusp of falling below the psychologically important mark of $3,500, inching closer to its yearly low, technical indicators show that woes of the flagship currency won’t stop in 2019. In fact, it might fall to the $1,500 level, but there is also a silver lining.

A further decline

After the bloodbath stopped for a few days, Bitcoin is again showing signs of turbulence with its price failing to hold the key resistance of $4,000. It is yet to be seen whether December will be any better than November (when BTC experienced the biggest drop in nearly seven years). However, Bloomberg Intelligence analyst Mike McGlone has already voiced his predictions for 2019, claiming that the current crypto sell-off will continue. The ADX indicator, which tracks negative selling trends, is on the brink of breaching 50 percent, thus reaching a new high in 2018.

Based on this analysis, McGlone believes that the price of Bitcoin could plunge to $1,500, dragging the whole cryptocurrency market into the abyss. Currently, he believes, we are experiencing a market reversal after the December craze when Bitcoin reached an ATH of $20,000, making headlines around the globe.

So, what’s the silver lining?

While low prices are taking a toll on many crypto-oriented businesses (including Bitcoin mining), McGlone is certain that the current predicament is helping make the crypto space more stable, making less room for speculations. Combined with the dominance with the stablecoin season, we are looking at a positive trend, the analyst believes. Still, Bitcoin hardforks serve as a proof that the market is still not mature enough. Investors have to brace themselves for the biggest decline since 2011, which will eventually lead to a much healthier environment.

Nevertheless, many believe that the bulls will be in full force in 2019 due to the influx of institutional money. Crypto evangelists bet big on Bakkt, the ICE-baked exchange that is expected to launch its futures on Jan. 24, 2019.

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Market Growth Fizzles Out, Bitcoin Price Stuck at $9,000

A bit of hesitation does not endanger further growth. Bulls and bears take a break as Bitcoin price sticks at $9,000.
Market Growth Fizzles Out, Bitcoin Price Stuck at $9,000
Contents

 

There is often a situation in the market when by the middle of a week that began with rapid growth, trading volumes are falling and uncertainty is increasing. There are psychological and material causes for such player behavior, but the principle at the root is the same — resources (both emotional and financial) need time to recharge. Yesterday we wrote that Wednesday was likely to be a day of lateral movement, and that’s exactly what happened.

Most assets (this applies to Bitcoin as well, which is still trading at $9,000) did not change in price, but market capitalization continues to grow and has reached $350 bln by Thursday. For the second day in a row we see a $15 bln increase in capitalization, but while on Tuesday the entire market showed growth, Wednesday’s value gains were aided by individual assets that significantly outperformed average growth indicators.

Unstoppable: EOS continues victorious procession boosted by positive news

EOS is a striking example of such an asset, easily reaching the first target of $6.8 and immediately moving onward to $8. In addition to the fact that the coin is attractive in itself due to its prospects, the developers have also fueled interest in the project by announcing a partnership with a major German fintech investor FinLab AG.

Together, the two companies will establish a $100 mln fund, and this is just the beginning - in the future, developers promise to raise $1 bln in funding. The money will be used to finance future projects on the EOS blockchain.

Mass media uses dirty tricks to compromise Bitcoin

Yesterday we observed an attempt to attack the market, specifically Bitcoin, with negative news in the best traditions of yellow journalism. The news itself is so ridiculous, absurd and at the same time unpleasant that we will not reproduce it here - curious readers will have no difficulty finding this information online. Here’s a hint - it is connected to illegal materials allegedly found on the Bitcoin’s blockchain. The news was swallowed up by the market, the price of Bitcoin did not react, so we can state the fact - the attack failed.

BTC/USD

The maximum price of Bitcoin on Wednesday was $9,180, and the minimum was $8,770. Yesterday, we warned readers about a possible decrease to $8,800 and recommended adding to long positions at this level.

After a minor correction, trading volumes fell significantly. This happens when buyers have already bought, and sellers have sold the asset in accordance with their goals. For now, the bulls missed their chance of a rapid break through the resistance - it will take some ingenuity to create a favorable occasion. Such an opportunity could be provided by reaching the level of $9450, found using the Fibonacci grid, at the point of its intersection with the lower boundary of the ascending channel.

Market Growth Fizzles Out, Bitcoin Price Stuck at $9,000

At the same time, we are inclined to think that the hourly chart shows a formation of the “diamond” figure of technical analysis which usually indicates a reversal. Of course, right now we are not talking about a new bearish trend, but in case of activation, the price could test the mirror level of $8,600 and still remain above the main support - the boundary of the descending channel. Therefore, readers who bought Bitcoin for $8,800 can manually close these positions at the breaking of the lower side of the diamond (market by the letter A on the chart) in order to add them later at cheaper price.

Trading volumes, especially important for a young growing trend, are now the cornerstone of Bitcoin's further movement. If buyers manage to push the price above the level of $9,400, we are more likely to see an influx of new resources.

EOS/USD

The records that EOS continues to set prompt us to return to the detailed analysis of this asset earlier than planned. By the end of Wednesday, the price of the coin reached $7.2 - that is, from the moment of reversal, in just 4 days, the growth was a staggering 80 percent! Investors can thank the development team, who chose a very good time to announce a new partnership - we have before us an instance of exemplary marketing.

The growth was stopped by the intersection of the 1.618 Fibonacci extension and the upper boundary of the descending channel, which EOS nearly pierced through. Now, the price can stand to cool down a bit.

Market Growth Fizzles Out, Bitcoin Price Stuck at $9,000

The nearest resting zone can be $6.4, it is indicated by the 0.236 Fibonacci retracement, as well as the mirror level. A decline to $5.9 at the level of the 0.382 correction is also possible, but the price won’t stay there for long.

The scenario for further growth has not been discarded, and our target of $8 remains relevant. After its achievement, the bulls will meet an important mirror resistance level, indicated by the orange line. The further fate of the asset in the short term depends on the decisiveness of their actions.

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Wikicoin Katya Michaels

Why is Bitcoin Worth so Much?

📚 Wikicoin
Everyone is watching the price of Bitcoin, but how much is it really worth and why?
Why is Bitcoin Worth so Much?
Contents

 

As investors and traders breathlessly watch the price of Bitcoin, fortunes being made and lost on the extreme volatility of the cryptocurrency market, one might wonder why this virtual representation of value is worth so much.

While none of the modern fiat currencies are backed by gold any longer, they rely on the “full faith and credit” of governments. Whether that means anything at all is a divisive matter of opinion. Bitcoin, of course, is not backed by a government or any centralized institution, and has no physical manifestation.

With this in mind, it can be difficult not to succumb to the “Bitcoin bubble” scaremongering. However, any investment opportunity demands thorough and impartial research, so let’s take a look at some of the factors that make up the perceived value of Bitcoin.

The value of Bitcoin, and the Blockchain that underlies its use, is bolstered by something that can’t be measured.

Bitcoin payments: the popular attraction

The first thing most people think about in relation to Bitcoin is its utility as a digital currency for private, instant and global transactions. What makes them different from fiat transactions?

  • Bitcoin can serve as an alternative to heavily monitored payment systems, like credit cards and wire transfers. For those who value preservation of privacy, this holds a great deal of value.

  • The divisibility of Bitcoin and the absence of third parties in the verification process makes it a promising medium for micropayments, when a good solution for scalability is found. Reliable, scalable micropayments will revolutionize online commerce and advertisement.

Bitcoin as store of value: a deeper insight

Despite the enticing prospects of Bitcoin payments, paying for one’s lunch is probably not the most optimal use of the currency, at least not yet. For many everyday consumers and experienced investors alike, Bitcoin serves as a store of immutable value - a kind of digital gold. How so?

  • While central banks can print more fiat currency when they choose, the amount of Bitcoin is mathematically limited to 21 million. This scarcity, even more stringent than the scarcity of a natural resource, means that Bitcoin will not be devalued.

  • Today, many people in the world are living under conditions of political and financial uncertainty, fearful of their assets being seized, frozen, or dissolved after a government collapse. For them, Bitcoin can be an investment that transcends borders, dictatorships and bureaucratic barriers to entry.

Bitcoin Blockchain: the fundamental innovation

At the core of Bitcoin’s functionality lies the cryptographic innovation which is the real technological and financial game changer - the Blockchain. Essentially, Bitcoin currency was just the first application built on the Blockchain, but the possibilities of this technology are wide-ranging.

  • Blockchain is a programmable, natively digital technology that enables the simple and immediate execution of tasks that would be convoluted and complex in traditional frameworks. This convenience will drive the mass adoption of Blockchain, even if people will not be explicitly aware of using it - much in the way we are not always aware of using the TCP/IP protocol now.

  • Blockchain is already being used to build industry-disrupting applications, with the scope of Blockchain implementation growing continuously. For many investors, the overall future worth of these applications, which is difficult to even imagine, is what gives Bitcoin value today.

The price of liberty

Finally, sentimental as it may seem, the value of Bitcoin, and the Blockchain that underlies its use, is bolstered by something that can’t be measured - the promise of financial independence, freedom from regulation and right to privacy.

Crucially, with Bitcoin, the “eternal vigilance” that ensures liberty is decentralized, distributed and implemented through automatic mathematical operations, eliminating reliance on faulty humans and potentially corrupt institutions.

It’s true that many Bitcoin functions that make it an attractive investment are now provided, often with improved usability, by various altcoins. The cryptocurrency market is diversifying, but Bitcoin remains its dominating asset, both financially and psychologically, and most altcoins’ valuations are correlated with Bitcoin.

In the end, Bitcoin has value because its users and investors believe it has value. But today, that is the case with fiat currencies as well, so it’s up to each individual consumer and investor to decide - which currency’s faith and credit is more worthy.

Wikicoin
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Vaido Veek

Bitcoin Price Consolidates, EOS Looking to a Rally, Cardano Climbing Up: Crypto Price Analysis, Sept. 4, 2018

Bitcoin moves sideways between the two strong levels and waiting for a breakout but which way?
Bitcoin Price Consolidates, EOS Looking to a Rally, Cardano Climbing Up: Crypto Price Analysis, Sept. 4, 2018
Contents

*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin possibly breakout opportunities

Currently, we are still between those two “resistance” lines (blue lines). To give you an indication where we might go then we have an “Inside bar” candlestick pattern (black lines from the wick).

We already have a higher close from this important candle but we need also a close above the wick, above the black line and if we get a close above $7,350 then we have two confirmations- breakout from the “Inside bar” main candle and break above the strong resistance levels.

If we lose the bullish momentum and we start to make a bigger pullback downwards then those confirmations are close below the Inside bar candle range ($7,200) and close below the trendline (black diagonal line).

image

If the market stays stable EOS may start to rally upwards!

From the last month, we got a nice "Hammer" candlestick pattern (bullish pattern), bounce upwards was from $4 and the close was $6.4. Last week EOS made a little bit over 30 percent growth (open $4.9, close $6.6) and it made a break above the major down-trendline. Currently, the weekly chart shows us also a very positive sign, we have a "Morning Star" candlestick pattern which will indicate bullishness. If Bitcoin and the whole market stays stable then we could definitely see some rally upwards because, we have two strong candlestick patterns on the higher timeframes - super strong sign.

image

On the four-hour chart the current price is above the EMA's (50,100,200) but if we want to move upwards then we have to take down the July low which is around $6.5 and above the July low is also a very strong resistance what you need to watch: the round number $7 and there are also old supports which now becomes a resistance. So, above us, you have to watch two levels $6.5 and $7. If we take those levels down then we may go almost straight to $10 because 100 & 200 EMA are pointed upwards and ready to make a death cross.

Cardano (ADA)- steady climb upwards

On the four-hour chart, Cardano shows us steady rise upwards. Now we have clean higher highs (HH) and higher lows (HL) which should be a positive sign. 50 and 100 EMA starting to cross which is also a good sign that the rise may continue if we see a bullish price action. Currently, the price is above the 50 and 100 EMA and above the round number $0.1. Those levels should start to work as a support.

image

If we drop a little bit lower than we could find a support from the minor trendline. So, if we find a support from this strong crossing area where EMA's, round number and the trendline meet each other and we start to go higher than our next resistance area is $0.113- there is the June low and possible higher high the road to the $0.113 could be a bit messy because we have to take down the 200 EMA on the four-hour chart.

Summary: Definitely EOS looks better than Cardano because Cardano, in the higher timeframes, doesn't look so bullish as EOS but at least ADA shows us some recovery with a steady grind upwards.

Hopefully, this helps you out a little bit to confirm your own analysis. Definitely, do your own research!

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Andrew Strogoff

Bitcoin, Ethereum, Ripple, EOS Start This New Week in Red: Price Analysis, May 28

Red again: cryptos start this week in negative area, establishing new local lows
Bitcoin, Ethereum, Ripple, EOS Start This New Week in Red: Price Analysis, May 28
Contents

The cryptocurrency market is still unable to stand up after a shocking knockout. There were some positive attempts on Friday, but the price stood neutral during the weekend and started to decline on Monday. There is still no news to awake cryptos as they continue to slide down their trend lines like snakes.

We have two conferences on the way- Blockchain & Bitcoin Conference Australia as well as Bitcoin meetup. The last to take place in San Francisco, US. Those events may cause some positive changes, but it is still too early to analyze them.

Regardless this general negative scenario that is unfolding now in the crypto market, there is some positive news coming from different regions regarding the expansion of cryptocurrencies into the real economy. Bitcoin is now accepted by Stormy Daniels’ adult website and may be used to pay utility bills in the Czech Republic. As for Ripple, this crypto is now available for Stock app users.


Bitcoin (BTC/USD) Price Analysis, May 28

BTC/USD


Bitcoin is still unable to get off the ground as BTC price continues to slide down the trend line establishing new lows. There are no significant losses in the past 24 hours as BTC/USD falls less than two percent.

BTC/USD

The currency pair managed to cross the descending trend line on Friday and followed the green scenario. BTC/USD reached 1.618 retracement level, which coincides with $7,565 resistance area. However, later Bitcoin resumed declining and reached the descending trend line. The possible scenarios for BTC/USD are the following:

1. Red scenario (bearish). The currency pair will break through the support area at $7,199 and move below it developing downside tendency.

2. Orange scenario (neutral). BTC/USD will jump off the current support area at $7,199 and move upwards targeting the closest resistance area at $7,565, which coincides with 1.618 retracement level.

3. Green scenario (bullish correction). The currency pair will go towards $7,565 resistance area and break it through aiming the next resistance area at $7,949.

We think that neutral scenario has more chances to develop. However, bullish correction towards $7,949

Ethereum (ETH/USD) Price Analysis, May 28

ETH/USD

ETH/USD has lost over eight percent in the past 24 hours. It is still below the descending trend line meaning bears dominate the market. There is even not a single sign for future reverse as ETH price is unable to cross this midterm trend line.

 

ETH/USD

Let’s have a closer look at what is happening on the hourly chart within the Fibo retracement. ETH price jumped off 3.618 retracement level several hours ago and seems to start a bullish correction now. ETH/USD followed orange scenario and reached $596.08 resistance area. However, later the price declined towards the support area at $566.90.

The possible scenarios for ETH/USD are the following:

1.    Red scenario (bearish). The currency pair will go towards 3.618 retracement level and break it through.

2.    Orange scenario (neutral). Ethereum will go towards the descending trend line and the closest resistance area at $566.90. Once this area reached, ETH/USD will reverse downwards.

3.    Green scenario (bullish correction). The currency pair will reach 2.618 retracement level and red descending trend line, break the through and go higher aiming at the closest resistance area at $596.08.

The neutral scenario has better chances to develop.

Ripple (XRP/USD) Price Analysis, May 28

XRP/USD

Ripple has lost nearly six percent in the past 24 hours. The currency pair is above the descending trend line, but bulls still seem to be unable to change the situation significantly as XRP price continues to slide down.

XRP/USD

Let’s have a closer look at the situation on the hourly chart. Ripple followed the orange scenario during the weekend but started this new week with a serious decline. XRP/USD managed to fall towards 2.618 retracement and established a new local low.

Possible scenarios for Ripple are the following:

1.    Red scenario (bearish). Ripple will develop its downside progress targeting new local lows.

2.    Orange scenario (neutral). XRP price will run towards the closest resistance area at $0.5914. XRP/USD is likely to reverse afterwards.

3.    Green scenario (bullish correction). XRP/USD will reach the closest resistance area at $0.5914 and cross it targeting the next 1.618 retracement area, which coincides with $0.6216 resistance area.

The neutral scenario seems to have better chances on Monday.

EOS (EOS/USD) Price Analysis, May 28

EOS/USD

EOS has lost nearly four percent in the past 24 hours. The currency pair seems to be in a correction to a midterm downtrend. However, bears seem to control the market as the price is close to the descending trend line.

EOS/USD

EOS has tested the resistance area at $12.80 but failed to break it through and went downwards. The currency pair crossed 0.236 retracement level and reached the support area at $11.92. EOS/USD fluctuates below this support in the moment of writing.

The possible scenarios for EOS/USD are the following:

1.    Red scenario (bearish). The currency pair will break through 0.5 retracement level and move lower targeting support area $11.41, which coincides with 0.618 retracement level.

2.    Orange scenario (neutral). EOS/USD will run towards 0.236 retracement level and reverse downwards there.

3.    Green scenario (bullish correction). EOS/USD will reach 0.236 retracement level and break it through targeting the closest resistance area at $12.80.

Zcash (ZEC/USD) Price Analysis, May 28

ZEC/USD

Zcash has lost nearly nine percent in the past 24 hours. The currency pair is in a deep downtrend showing no signs of recovery. It slides down the red descending trend line and breaks one support area after another.

ZEC/USD

Let’s have a closer look at ZEC/USD’s fluctuations. The currency pair seems to be unstoppable and falls all the time without even a minimum correction. By the way, Zcash has left the top 20 cap cryptocurrencies during the weekend. It has broken through 254.88 in the past several hours and seems to aim other targets that are lower.

Possible scenarios for ZEC/USD are the following:

1.    Red scenario (bearish). ZEC/USD will break through the closest support area at $239.79 and move lower.

2.    Orange scenario (neutral). The currency pair will jump off the support area at $239.79 and move towards the closest resistance area at $254.88. ZEC/USD will jump off this area and move towards the support.

3.    Green scenario (bullish correction). ZEC/USD will break through $254.88 and run targeting the next resistance area at $273.34.

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Bitcoin Price Reaches $11,800 But Bulls Are Exhausted, For Now

The bears strike back: buyers pushed Bitcoin price through critical resistance but couldn't protect it
Bitcoin Price Reaches $11,800 But Bulls Are Exhausted, For Now
Contents

The cryptocurrency market was overflowing with fateful events on Tuesday as we watched with great interest. Though not on the first try, Bitcoin did manage to overcome the critical resistance level, reaching a maximum of $11,800 during the day.

However, just a few hours later, the bears came out of their long hibernation and struck back at a crucial moment, bringing the price of the underlying asset down by $1,000, and total market capitalization down by $30 bln to $480 bln.

No reason to panic

It was with good reason that we advised our readers to be cautious and refrain from trading operations because the main thing in such a situation is to avoid hasty decisions that could lead to loss of assets.

“In general, in our opinion, investors have no reason to panic, the growth scenario remains in effect, and the recent events should be seen as a necessary step back to refuel.”

As it usually happens, altcoins reacted strongly to Bitcoin’s correction and colored the market red (both in the top 10 and beyond). While BTC decreased by about 2.5 percent, other assets fell by eight percent or more, on average. This allowed the forefather of all cryptocurrency to gain even more dominance, up to 39.2 percent, which corresponds to the values ​​of July 2017.

IOTA suffered more than others, conceding the last position in the top 10 to Dash after a 12 percent decrease. It’s followed by Stellar, with a price decrease of 11 percent. NEO and Bitcoin Cash round out the losing coins with a decrease of nine percent each. Litecoin is looking better than the rest of the market, falling by “only” four percent.

BTC/USD

At the time of writing, Bitcoin is trading near $11,000. The reason for the price decline was the weak activity of buyers after reaching the critical resistance. Yes, this level was broken, but not on the first attempt and at rather low trading volumes. After a three week ascent without significant rollbacks, the resources of the bulls were depleted.

Picture 1

It’s a good sign that the price stayed for a sufficiently long time in the upper register of the ascending channel, the boundary of which slowed the descent. According to the volume profile data, a large amount of BTC for the period since Dec.17 (the previous global correction) was traded in the range of $10,750-$11,300, and we are now in the very middle. Further price reduction cannot be ruled out, although it is unlikely to be significant, $10,750 coincides with the 0.618 Fibonacci retracement. At the most, there is the possibility of a safe decline to $10,500. As for growth scenarios, they will be activated only after a second break through the resistance and the settling of price around $12,000. We recommend our readers to keep their defenses and not to part with long positions.

ETH/USD

Bitcoin correction could not leave its nearest competitor unaffected, as a result, Ethereum price fell to $860. On the chart, we see the activated figure "head and shoulders," the dimensions of which have been realized with high accuracy. In addition, the price decline was slowed by the 0.236 Fibonacci retracement.

Picture 2

The fair price for Ethereum in the considered time interval is $930 and we believe that this level will soon be reached again. However, if Bitcoin price correction continues, we can’t exclude the possibility of Ethereum movement to $820, where there is strong support in the form of the lower boundary of the ascending channel, as well as the 0.382 Fibonacci retracement.

DASH/USD

The DASH chart is quite reminiscent of Ethereum’s price fluctuations, with one difference- DASH has overcome its critical resistance level (marked on the chart in red). Otherwise, the situation is similar, the current drop to $660 also stopped near the boundary of the ascending channel and the 0.236 Fibonacci retracement level, with a small margin.

Picture 3

The fair price of Dash is very close- its value is $700. In case of further decline, in the worst-case scenario, we can see a test of the 0.382 level, coinciding with the price of $600. We will reiterate: there is no reason for panic. Medium and long-term investors should not view the current situation as a threat to future profits.

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