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Cryptocurrency Market Doing Better Than Dow Jones: Paradigm Shift or Flash in the Pan?

  • Daniel Osten
    📈 Price Predictions

    Bitcoin Cash attempts revenge while the market stands still. The influence of stock indices on crypto is decreasing.


Cryptocurrency Market Doing Better Than Dow Jones: Paradigm Shift or Flash in the Pan?
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Over the last 24 hours, there has been no significant change either in the cryptocurrency market or the balance of driving forces.

Bitcoin price is trading near $8,000, and the total capitalization remains $385 bln. We see a smooth flow of volumes from one asset to another, though price fluctuations of the top 100 coins are within five percent, with few exceptions.

Bitcoin Cash grabbed our attention, having shot up 30 percent without any apparent informational trigger. Experience shows that the news cycle is often created after the fact, so on Friday, we are expecting some "fresh" news about the project.


So far, it looks as if the players behind BCH decided to take advantage of indecision in the market and prepare the platform for a later offensive.

In the top 10, a battle is raging for last place: IOTA is attempting to regain lost positions and displace NEM, whose price movements in the last week have been a roller coaster ride. The coins are nearly matched in capitalization and DASH is pressing up from below, so the action promises to be exciting.

Of particular interest in the current situation is the nearly complete lack of reaction in the cryptocurrency market to changes in major US stock indices.

The sharp fall of digital assets on Feb. 5-6 coincided with a historic decline in the Dow Jones index. Well, yesterday the index almost repeated its anti-record, but the crypto market reacted weakly, if at all.

This is a good sign for Bitcoin and altcoin investors and may become a trigger for attracting additional capital from traditional markets to the Blockchain industry.

BTC/USD

Bitcoin buyers failed to activate the "inverse head and shoulders" figure that we mentioned yesterday, and so prices were trapped in the $8,000-$8,500 range. We saw a similar formation on Jan. 17-20: after sideways trend prices went up.

Picture 1

Support for the bulls is provided by the curve formed on Feb. 6 during the reversal of the price movement. The main resistance is given by the upper boundary of the downtrend from Jan. 6 and the nearest mirror level. In price terms, we are talking about the $9,200 mark.

If prices break through this level, it is likely that they will continue to rise. An intermediate success for buyers will be the closing of the week above $8,200.

In the negative scenario, we expect a correction to the $7,300 level at the 0.382 value of the Fibonacci grid. Our recommendation is to refrain from purchases at the moment.

BCH/USD

By Feb. 6, Bitcoin Cash fell 5.5 times compared to the maximum values ​​recorded on Dec. 20 and was valued at slightly over $750.

But, there was a silver lining, due to the low price of the asset the bulls managed to pull off a minor miracle and chase the price from $1,000 to $1,350 within the course of a day in a low-volatility market.

Picture 2

The growth was only limited by the boundary of the descending channel, but we are expecting at least one more attempt at the assault. If successful, the next resistance levels are $1,425 and $1,500.

On the Fibonacci grid, the goal of the bulls is clearly visible- $1,675, which coincides with a powerful mirror level, though its rapid achievement is doubtful. In the event that the bulls lose their strength and fail, the most likely target for correction is the $1,100 level, marked in green on the graph.

History shows that the ups and downs of BCH can be very rapid. Therefore, we caution our readers to refrain from buying. On the other hand, partial sales at resistance levels seem appropriate.

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Pump or Dump? BTC Price Analysis Is Interpreted in Two Opposite Versions


Pump or Dump? BTC Price Analysis Is Interpreted in Two Opposite Versions
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

One of the most extravagant crypto traders on YouTube, Crypto Kirby Trading, has come up with his own observation of Bitcoin price predictions and technical analysis. His notes give us a hint that there are two ways for BTC to go. What are they? Watch this YouTube video and check out which BTC price theories the trader has.

Head & Shoulders pattern – a bullish sign

Head & Shoulders bearish pattern cannot stay unnoticed – we can see it forming from the beginning of April until now. However, the right shoulder hasn’t formed yet, so the pattern should be confirmed – don’t rush to make conclusions.


What happened recently when BTC fell into the abyss? According to Crypto Kirby Trading, it was resistance short. Shorts got a little bit high, and they squeezed it. In fact, the recent squeeze didn’t bring us anywhere – it’s like nothing happened.

At the moment, BTC goes sideways and sees resistance. Judging by H&S pattern, the volume peak has been reached, and now we are under resistance line in the right shoulder. If BTC’s price suddenly goes up, the pattern will be invalidated.

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Pattern within a pattern

Which pattern has been taken by BTC? It depends on how you look at it! What do we have here?

Descending triangle pattern or an ascending triangle (a little bit longer term)? Both are possible!

There has been lot of speculation about these patterns – that’s the problem. So, we have two different triangles and H&S, three patterns at the same time. If the H&S or descending triangle get validated – BTC is expected to go down to $5,000 and further into the abyss.

Take a look at the chart. We are still trading below the key resistance in the red box, and the rest of indicators still look bearish. We haven’t been trading so low since February 2018! That’s why it’s hard to believe that we will pump.

According to Crypto Kirby Trading, the $6,000 resistance might be very hard to beat – the hardest in BTC history. Very unlikely that it will happen in the nearest time, but who knows?

So, what should happen?

Crypto Kirby Trading  reckons that the possible $4,500-$4,300 would be a better bottom to buy BTC even than at the winter level. However, you should be very attentive. We are testing the November 2018 levels, and it’s important to make proper adjustments here.

Currently, the volume has been higher than in the previous months, but it’s not promising – it seems to be declining gradually. If we go down, we will reach consolidation to resistance.

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What should happen for a dump?

If we move sideways without touching resistance, expect a bearish period, and we’ll continue adjusting the triangle pattern until it breaks. Confirmation of patterns is required – don’t rush to make conclusions yet.

One more thing signifying a possible dump is the Fear & Greed Index – 61, which means we can fall as it always occurs when we get greedy and want to squeeze maximum profit from the market.

What should happen for a pump?

For pump, we should break the red box ($5,750). We should test the top of the box as well as the H&S and reach new volume – we want this boom to happen and bring us to the top, don’t we? If that happens, opportunities can get insane because the bulls vs bears battle will be epic. We might get through $6,000-$7,000, but of course not without failing the first attempts to scratch the top – it always happens this way.

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