Thomas Hughes

Ethereum Price Prediction: Will ETH 2.0 Amount to Anything?

Ethereum price forecasts for 2018 are shifting as ETH 2.0 comes into focus. Will the world’s most advanced blockchain survive the upgrade?
Ethereum Price Prediction: Will ETH 2.0 Amount to Anything?
Contents

Ethereum price forecasts for 2018 are shifting as ETH 2.0 comes into focus. The question now is, will the world’s most advanced blockchain survive the upgrade?

Ethereum price predictions began to move higher immediately after the blockchain’s founder, Vitalik Buterin, laid out a plan for Ethereum 2.0. Ethereum 2.0 is the sum-total of all upgrades and improvements that are in the works for the Ethereum network and a plan to implement them. The news has been long-awaited: Ethereum suffers from network slowness, poor scalability, and security flaws that have been capping its potential.

Ethereum predictions had been steadily falling up until the timeline was announced. The token had been trending flat and below the $200 for nearly a month with little to move it save hope. In the wake of the announcement, the token saw a resurgence of interest that took it to a one month high, although the gains were limited. While the news is good — ETH 2.0 is a good thing — we’ve been hearing about upgrades for a long time, and we’ve seen them postponed more than once.

The charts don’t look very bullish, although the bottom in prices is probably in. At this level, miners are breaking even or making a little money, which makes a strong level of support; they are not likely to sell their tokens at a loss. The ETH token is trending near long-term lows and is trapped within a trading range that will dominate the market until a real, true, actual launch of ETH 2.0 is revealed. Until then, all we have is hope that the timeline they’ve given is one they can stick too.

Ethereum price predictions 2018: ETH 2.0 will drive prices

So, what exactly is ETH 2.0? It is an upgrade to the ETH network that will facilitate the switch to Proof of Stake, improve scalability, and speed up transaction times. The switch to Proof of Stake will rely on the Casper update, one of many that have been in development for years. It will move Ethereum away from the less sustainable Proof of Work model while Sharding and ZK-Snarks will help speed up the network.

Proof of Work is the most common model of blockchain design. It is the protocol upon which Bitcoin, Litecoin, and many other “mineable” cryptocurrencies are built. The problem with Proof of Work is that it requires a lot of computing power — exponentially more than what it needed to verify the blockchain — and creates a lot of waste that could be avoided.

Proof of Stake is a blockchain protocol that requires miners to put up a stake, or deposit, in order to participate in mining activities. The miners earn a fee based on transactions instead of mined coins and are thought to be incorruptible because they have skin in the game (they could lose their deposit and more if the token fails, falls to zero, etc). Because Proof of Stake miners earn fees and not mined coins, there is no risk of mining all the coins and having the network fail, among other issues tied to POW mining.

Breaking Ethereum will make it faster

Sharding is the concept of breaking the ETH network into hundreds, thousands, or even millions of sub-chains in a way that are collatable across the network. This would create an environment with virtually unlimited account space and provide quadratic scalability. The double benefit of Casper and Sharding will be a much faster network and one that is much cheaper to use. The only problem — for traders and investors, that is — is that Sharding and ETH 2.0 are most likely not going to happen until 2020 or later.

ETH price prediction: ZK-Snarks will drive growth

Ethereum’s price forecast needs to take ZK-Snarks into consideration. ZK-Snarks, or Zero Knowledge-Succinct Non-Interactive Argument of Knowledge, is the technology that powers Z-Cash. It is a blockchain protocol that allows the verification of transactions without either side having specific knowledge of the transaction. It is in effect a means of using another blockchain to handle Ethereum transactions off-network in way that is seamlessly integrated with the greater Ethereum network.

Ethereum co-found Vitalik Buterin says using ZK-Snarks technology ETH can improve transaction speeds exponentially from the current 14-15 transactions per second to more than 500 transactions per second. The upgrade would be a major improvement for ETH and help it scale beyond the mere 6 transactions per second provided by Bitcoin.

This is how it would work. The Z-Cash ZK-Snarks system allows value (in the form of ETH or other blockchain tokens) to be stored on the Z-Cash network. The network then issues zETH (or zBTC etc) in its place and transactions based on that value are stored in the Z-Cash system. Later, when the ETH is returned to the ETH network, all transactions performed in the interim are accounted, but without having used Ethereum computing power.

While great news for ETH users and traders, there are still two drawbacks. The first is that 500 tps is still a far cry short of the thousands of transactions per second that payment processor Visa is able to handle — a fact that will limit ETH adoption by mainstream financial services if speeds can’t be increased further. The second is that the implementation date of the protocols is yet to be determined and may not come for many months.

Ethereum forecast 2018: Flippening at hand?

Ethereum has long been hailed as the world’s most advanced blockchain. When compared to Bitcoin and other single-purpose tokens, it is the equivalent of a smart-phone, whereas Bitcoin is an old-school rotary phone. You can use Bitcoin to dial up an address and send value, but you can’t run applications on it the way you can with Ethereum. This fact has been the driving force behind ETH predictions since it launched. However, with scalability issues, the uncertainty surrounding ETH 2.0, and the rise of other types of blockchain technologies, those same Ethereum predictions are suffering.

Ethereum’s main rival is Ripple. RippleNet is a blockchain focused solely on the problem of scalable, cross-border/cross-platform exchanges and atomic swaps of cryptocurrencies. It has seen exponential growth over the past year and recently announced a major deal with one of Europe’s largest banks, Banco Santander.

  1. Bitcoin is the leading cryptocurrency by market cap. It is worth more than $110 billion and 52% of the total cryptocurrency market.

  2. Ethereum is the second ranged cryptocurrency by market cap and worth about $21 million or 10% of the total market.

  3. Ripple is the third largest by market cap at $20 million and 9.5% of the total cryptocurrency market.

The news has prices for XRP, Ripple’s native token, moving higher and challenging Ethereum for its second-place ranking. Ethereum is the second largest cryptocurrency by market cap and commands about 10% of the total cryptocurrency market. XRP is the third largest by market cap and commands about 9% of the total cryptocurrency market. A flippening, as it has been labelled, would mean XRP has overcome ETH by market cap and become the second largest blockchain by value.

While this may seem like a negligible factor, it could very easily spark a mass exodus from ETH and inflow to XRP. To date, there have been several instances of micro-flippening, that is, a time in which XRP has briefly and by a small margin surpassed ETH by market cap. So far, none of these flips have resulted in a permanent shift in dominance but they could, especially if ETH fails to upgrade successfully or if Ripple is able to gain traction in global financial circles.

Ethereum prediction 2018: Trading is on tap

Ethereum price projections for 2018 are optimistic but based on anticipated upgrades that are yet to be delivered. This situation is likely to result in periods of upward price movement that may test key resistance levels but are not likely to result in a sustained rally, unless some other catalyst emerged to drive prices. A general rally in cryptocurrency markets may do it, but the more likely scenario is that US regulation and the launch of blockchain-based ETFs and other retail investment products will be the spark to drive ETH higher.

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Vaido Veek

Bitcoin, Cardano, Ripple Weekly Scenarios: Price Forecast, Oct. 16, 2018

Bitcoin, Cardano, Ripple weekly scenarios
Bitcoin, Cardano, Ripple Weekly Scenarios: Price Forecast, Oct. 16, 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 weekly scenarios

Weekly chart

Bitcoin has made a breakout from the major down-trendline which is a pretty important sign for the cryptocurrency. Yesterday, it made very big moves at exchanges where crypto-fiat trading is provided. That happened due to the USDT crash, but currently, things have settled down and we may do a technical analysis for Bitcoin and some altcoins.

On the weekly frame, trading is above the major down-trendline, and the highest high peak was reached. The highest high got confirmed on the one-hour time frame where it made a quick close above the previous level.

Daily chart

Yesterday’s candle close was above some important levels: above the round number $6,500, above the curve support and above the major down-trendline. One and the most significant level was unbeatable at $6,767 but the most important sign is that the candle closed above the major down-trendline. It will show that technically the power is there and buyers manage to hold the price above the trendline.

Speaking of the further action, the first blue line above the current price is the key level. That is a possible scenario; however, power is needed to acquire this level.

Then we could see a movement to the $7,000 and to $7,400 because currently, there are not so much heavy resistances to stop us. The road is definitely not as fast and smooth as it was yesterday. Step-by-step, resistance after resistance.

Four-hour chart

Yesterday we got pretty quick throwback which is not a good sign, but luckily, today we have seen positive actions from important price levels. The price fell down to the super-strong crossing area around $6,700. The major down-trendline, the curve support and the minor trendline pulled from Sept. 22 have met at this point.

The price reacted quickly, and after the close, it formed a bullish “Hammer”, a little consolidation and currently, we fight again with the strong resistance (the blue line at $6,767). If this move upwards is a long-lasting one, then it would be the key point. The retest area (crossing area) was that important because, after the breakout, the price almost always makes a retest, and the climb may continue after that, so as it does now.

In the night, there was some awaiting what is going to happen next. Altcoins were slightly on the red side, and BTC was ready to make a little move. After some raise, Ripple was first to take an action and started to climb higher pretty quickly. Now almost all the altcoins are on the green side to support this breakout from the strong resistance area.

Let’s talk about Bitcoin possible scenarios.

Bullish scenario:

Firstly, the retest, which ended with the “Hammer” pattern, has to hold us, and secondly, we have to take down the strong area at $6,767. This is the first guideline to the higher prices because lately, this level has played a significant role. It has been unbeatable resistance point multiple times and if it finally breaks, we might see a nice move upwards to the next round number $7,000 and from there to the $7,400 higher high point.

Bearish scenarios:

1. A candle closes below the curve support.

2. A candle closes below the brown short-term trendline.

3. A candle closes below the major down-trendline.

Those are the most important supports below the current price, and if the price reaches below the aforementioned levels, then it would be a bad sign. Those criteria make together a strong crossing area, and crossing areas are always the key levels. At least, a four-hour candle closed around $6,550 gives us a break below from the crossing area and leaves only the round number $6,500 which has to hold the ‘fall train’ from falling any further.

Cardano weekly scenarios

Weekly chart

Let’s start from the weekly time frame (the image below). This week Cardano has found a support from the round number at $0.07. This level also worked as a nice support in September because after the rejection from the round number, ADA got a strong push upwards, showing 35 percent growth.

Around this $0.07, there is also a Fibonacci golden ratio of 62 percent which indicates that currently, the bounce occurred from the perfect area. Yesterday, it got a solid bounce upwards and found a resistance from another round number at $0.08 and from August low point which works now as a resistance.

Daily chart

A daily time frame (the image above) shows that the rejection downwards came from the August low and from the short-term down-trendline crossing area which makes this area pretty hard to beat. Currently, Cardano consolidates between the two round numbers and waits for further Bitcoin general actions. The platform (support bounce) is pretty good to make another leg upwards and to attempt to break above the short-term down-trendline one more time.

Four-hour chart

Now let’s dig into the four-hour chart (the image above) to clarify some confirmation areas to predict further movements. In the bigger picture, it shows that we are between the two short-term trendlines which together make a chart pattern called “Triangle”.

Bullish scenario:

On the image, there is a chart pattern called “Double bottom”. The double bottom has formed on the round number area at $0.07, which means that we have bounced upwards two times from the same area. Currently, it has made a retest at the pattern breakout area and the textbook says: “Buy the breakout when you have seen the retest.”

At the moment we have a retest, and this bullish pattern is an indication that our platform is good to go higher IF the market allows it.

To get more confirmations, first of all, we have to break above the round number $0.08 and above the 200 EMA. Those two are our main obstacles before approaching the short-term down-trendline (the triangle) which is also the key to the higher prices. If we got a breakout from the triangle, then we are out of the short-term downtrend and ready to fight with the higher levels resistances at $0.091 and the big round number at $0.1.

Bearish scenario:

If the market and Cardano start to show some weaknesses, then we drop back into the $0.07 area. There are some great supports for us: the round number and the short-term up-trendline (the triangle bottom line). Those two make a crossing area, and if we see a close below the round number and below the trendline, then it would be a bad sign for Cardano. That will mean that momentum is gone and we have broken below the triangle. That will be definitely an ‘alert’ sign. A close below the mentioned levels will guide us to the 2018 low point at $0.06.

Ripple weekly scenarios

Weekly chart

Lately, Ripple has shown incredible growth compared to other altcoins and currently, it makes a throwback (movement downwards) from its peak on Sept. 21. Last week it found support from the major down-trendline, which is pulled from Feb. 17, and worked as in a textbook: the strong candle made a breakout, and last week we made a retest and it bounced upwards pretty nicely. We predicted this scenario in one of our earlier posts mentioning that we might see a bounce upwards from the round number at $0.04. The massive amount of the bounce happened yesterday when XRP made a 25%+ growth just in minutes and currently, it has found a resistance from the $0.5, but we have lots of supports below the current price which will make this coin a little bit more stable.

Daily chart

On the daily chart, we could see that we trade above the 50 and 100 EMA’s, but it is the 200 EMA that works as a resistance. It matches almost exactly with the round number $0.5 which also works as a resistance, and together they make a pretty strong price level. Currently, the price fights with the old support levels which now becomes resistance. Yesterday candle closed below the red box, and it shows that this level works pretty well, so this is the first resistance that we have to take down if we want to see higher prices; a daily candle closed above the box will confirm that breakout. The box price range is around $0.47.

Four-hour chart

Yesterday we got a push upwards and the big bounce was technically from the pretty good area: from the Fibonacci golden ratio of 62 percent and from the round number $0.04. The bounce guides us to higher prices, and now let’s consider possible scenarios at the current level.

Bullish scenario:

We have made our first steps towards higher prices, the last four-hour candle has closed above the earlier mentioned red box which previously was the support. Positive signs are also that the price is above the EMA’s which will support this move upwards pretty strongly. The red box matches exactly with the March low point and currently, the price makes a retest. If the next four-hour candle closes above the box, then it will confirm that the retest was successful and the coin is ready to go higher, but once again, only if the market allows this.

Next resistance is not far from the current price — it is the round number $0.5 which has worked previously as a resistance. If you see at least a four-hour candle closes above the round number, then it would be a confirmation to go to $0.6. The road to the $0.6 is not hard because there are not so many significant resistances before that round number. So, firstly a nice retest candle guides us to the $0.5 and if you see at least a four-hour candle close above $0.5, then it should guide us to the $0.6

Bearish scenario:

Between $0.4 and $0.5 we have multiple important levels, and currently, they all work as support levels — March low, April low, June and July low and the round number $0.4. This makes us a little bit more secure as we know we have so much supports under the current price, but let’s name some of the bearish confirmation areas:

1. A candle close below the red area.

2. A candle close below the EMA’s.

3. A candle close below the gray support area and below the Fibonacci 62 percent.

Those levels are steps to the short-term counter trendline. If the trendline level breaks, then we can assume that the round number $0.4 doesn’t hold us anymore and we probably could go and test the lower levels.

If this scenario occurs, then we might go and retest again the major down-trendline but currently, a close below the gray and Fibonacci 62 percent area will be definitely bad signs.

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Stavros Georgiadis

Stellar Lumens Is Growing. What’s Next?

The 6th largest cryptocurrency in the world has recently formed an ascending triangle with higher lows and may be poised for a breakout aiming at $0.35 and then $0.38.
Stellar Lumens Is Growing. What’s Next?
Contents

Stellar (XLM) Technical Analysis

Stellar is currently in the sixth position in the top one hundred cryptocurrencies by market capitalization, having a market capitalization of $4.808.965.522 and price of $0,253682 as of Nov. 7, 2018. What’s next?

52- week Range: $0.0269 - $0.9199

1-Year Change: 823.44%

Looking for an upward breakout

Looking for an upward breakout

Stellar has recently formed an ascending triangle with higher lows and may be poised for a breakout aiming at $0.35 and then $0.38. The ADX DMI indicator shows a trend that is not very strong with a value of 20.25 for the ADX indicator, but the values of +DI and -DI are 32.92 and 13.35 respectively, showing that the dominant trend on the daily chart is the uptrend.

MACD indicator is also positive and rising, while the current price of $0.2620 is above the daily 20-period and the 50-period exponential moving averages show values at 0.2423 and 0.2383 accordingly. The Momentum indicator shows positive signs as it has formed higher lows and is rising, but the Stochastic indicator with values (14,3,3) is in the overbought zone above the 80 level.

What are the key levels to monitor for support and resistance?

First the daily Pivot Points are as follows:

Name

S3

S2

S1

Pivot Points

R1

R2

R3

Classic

0.23262

0.24049

0.25437

0.26223

0.27611

0.28397

0.29785

A break above the $0.26223 is very close and it may support the price to higher resistance levels. There is support at $0.1733, $0.1827, $0.2049 and $0.2540. There is resistance at $0.2715, $0.3013 and $0.35. Some resistance should be expected as the daily Bollinger Bands are $0.2413 and $0.2176 for the upper and lower band, respectively.

Buy at lower price levels anticipating a breakout

If the breakout is to occur, a good risk-adjusted trade may be buying near the support level of $0.23 and having the price of $0.35 as a first target. There is very strong support at the price near $0.20, so a stop-loss below it would offer a risk-reward ratio of about 1:3, which is considered very attractive.

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Vaido Veek

BTC Testing The Curve Support, LTC Breaks The Trendline, XMR Looks Bad: Price Analysis, Oct. 10, 2018

Bitcoin testing the curve support, Litecoin breaks below the minor trendline, Monero looks bad
BTC Testing The Curve Support, LTC Breaks The Trendline, XMR Looks Bad: Price Analysis, Oct. 10, 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 testing the curve support

Yesterday's price range was pretty small. The price was above the orange area (an important level) and below it.

Bitcoin testing the curve support

Currently, the price makes moves and it has broken below the all-important EMA’s, it has reached the curve support line and the March low level which also should start to work as a support. The Fibonacci golden ratio retracement level at 62 percent will indicate if we get a bigger or a smaller bounce upwards.

If we get a candle close below the mentioned levels, it would be the first sign of the bullish momentum gone. Our next major supports are the round number $6,500 and the strong support area at $6,460.

At the moment, altcoins also take this little hit but nothing remarkable. Watch those levels (curve support, round number, and the blue line as a strong support) and if the price breaks below then definitely stay out and wait for some better opportunities to enter again.

LITECOIN (LTC/USD) Breaks Below The Minor Trendline

Currently, the market takes some hit and so do altcoins.

LITECOIN (LTC/USD) Breaks Below The Minor Trendline

Currently, Litecoin has made a break below the minor trendline which will indicate that the red box below the price around $57 should start to work as a support. If this level doesn’t hold and if BTC drops even more, then we could see a break below the red support area and the price approaching the next support level at $55, and that would be an important level. In this case, the price structure may change. This area is the last HL (higher low) formation area and if it breaks, bad things can happen.

At the moment, BTC is on the very important area and if it gets a bounce upwards, LTC will have a good opportunity to follow this move and the targets will be on the next round number at $60 and the strong resistance at $62. So, watch closely what Bitcoin does.

MONERO (XMR/USD) - It Looks Bad

Monero has a break below the major counter trendline which is not a good sign! On the four-hour chart, it trades below the 200 EMA and it makes pretty ‘heavy’ steps downwards compared to others.

MONERO (XMR/USD) - It Looks Bad

Technically, if Bitcoin makes another leg downwards, XMR would drop like a stone because there are some support levels but nothing significant until the red box at $104.

Basically, we have a breakout from the triangle, break below the EMA's plus Bitcoin making moves downwards, so better stay out from Monero because if it drops, it drops pretty heavily. The market has to make a pretty big turn upwards then we could come back and watch it again but currently, stay away.

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BTC Bearish Breakout, NEO Between the Trendlines, XEM On the Upwards Channel: Price Analysis, Oct. 3, 2018

Bitcoin made a bearish breakout, NEO is between the two important trendlines, NEM looks good compared to other altcoins
BTC Bearish Breakout, NEO Between the Trendlines, XEM On the Upwards Channel: Price Analysis, Oct. 3, 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 made a breakout downwards from the triangle

Yesterday we got a breakout from the triangle. It was enough that the four-hour candle closes below the trendline, below the EMA's and the movement downwards be able to continue. This was almost a perfect breakout trade, we got a candle close below the triangle trendline. In the one-hour time frame, BTC price made a retest and bounce-back after it touched the breakout area.

The daily candle close was above the $6,500, but currently, on the four-hour chart we have a close below the round number, and the price is again on the strong support area (blue line). Last week this area played a significant role when we discovered the "Inverted Head & Shoulders" pattern, and again we are 'hanging' above $6,460, and the bulls hope that the strong support level holds the price. If it breaks (four-hour candle close below the line), then it will probably mean that the bearish momentum will continue and the next stop is around $6,330-$6,350. There is currently the major counter trendline since Sept. 8. If we fall even lower, there are two strong support lines which will stop the price. To stay on the market is a bit risky because we don't know how strong this bearish momentum could be. However, the breakout from the triangle and candlesticks layout indicates that we might see another leg downwards (confirmation is the candle close below the blue line at $6,460).

NEO (NEO/USD) is between the triangle trendlines

NEO has been respecting both triangle trendlines. Recently, it tried to break above the upper trendline which works as a resistance but didn't manage to push through from there. There were several attempts to break through the bottom trendline which is also the major counter-trendline (it works as a support), but this level has held us pretty nicely.

Currently, as BTC breaks through the round number area, NEO breaks below the strong support area, which has been historically a good support and resistance level. Now, NEO price is on the on the edge, at the moment this is our last support before the September low level at $16.15. If NEO price drops below that strong trendline, then the next critical zone is the September low where we have to watch what BTC does. So, currently, if BTC drops below the $6,469, then NEO drops below the major counter trendline (counter, because the overall trend is down).

To be bullish:

1. This trendline has to hold the price

2. We have to break above the strong area (blue line)

3. We have to break above the triangle upper trendline (trendline and the blue line makes a crossing area so, this level is very hard to beat).

If it happens, then the first target would be the round number $20 and the strong area at $20.7

NEM (XEM/USD) is technically good compared to other alts

Currently, NEM is trading on the channel. It has been respecting those channel trendlines, and it has made pretty good profit opportunities. (after we mentioned that XEM will explode, it made a 27 percent gain)

After BTC broke out from the triangle downwards, XEM has also come down pretty quickly but it is still on the channel, and it has an opportunity to make the higher low. At the moment, the price is a very strong support area, support criteria:

1. The round number $0.1, which works as a support

2. EMA 200 is exactly on $0.1, and it also works as a support

3. The Fibonacci golden ratio 62 percent matching with the criteria mentioned above

4. Plus if we drop just a little bit lower, then there is the 50 & 100 EMA's and the channel bottom trendline

So, currently, we think that if we see a break and close below the round number, then it's the first sign that NEM might go downwards, and the full bearish confirmation would be when we see a candle close below the trendline.

If BTC finds the support from the current level at $6,460, then NEM has technically a very good platform to go higher levels, but it all depends on what Bitcoin does.

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Daniel Osten

Bitcoin Price Drops to $7,240 as Bears Triumph; High Time for Buyers to Step In

Bitcoin price drops to $7,240 as bears achieve their goal over the weekend. Can we please see a reversal now?
Bitcoin Price Drops to $7,240 as Bears Triumph; High Time for Buyers to Step In
Contents

For any analyst, there is great interest in monitoring the impact of asset prices on the mood of investors (notably, in this causal direction, rather than vice versa). This past weekend, the market demonstrated how easily participants submit to panic and infect each other with negative emotions. Let's see if a positive outlook is just as easy to spread?

Since our last review, many events took place on the market, although a brief glance at the main indicators today and at the beginning of Friday may suggest that hardly anything has changed.

At the moment, market capitalization is $315 bln, which is $20 bln less than the values of March 16. However, yesterday, this figure was $280 bln, which is close to the value on Feb. 6, 2018 (the bottom of the previous correction) and Nov. 30, 2017 (the beginning of explosive market growth)! Bitcoin price at the minimum was $7,240, and its dominance was 45 percent.

We wrote quite a bit about the bears’ goal, in great detail, all of last week. As we can see, it was fulfilled with a minimum error of $40. At the time of writing, Bitcoin is trading at the $8,200 mark, while the maximum was at $8480 — therefore, in just 6 hours the buyers gained back $1200 of the decline.

G20 statement gives the market a boost

On Friday, we surmised that the fate of the cryptocurrency market will be decided at the G20 summit, where market regulation was one of the topics on the agenda. Again, we weren’t mistaken — the reason for such aggressive bull behavior was the statement by the head of the Financial Stability Board, indicating that cryptocurrencies are not considered to be a threat to the global financial system.

The altcoins reacted to the restoration of Bitcoin price quite predictably. During the weekend, the price of some assets in the top 10 fell not only farther than Bitcoin (which is normal), but farther than expected. Therefore, after the first signs that the prolonged depression is nearing its end, we see significant growth for coins that lost the most value, and moderate growth for those that kept afloat.

BTC/USD

It seems that at the $7,240 mark we saw the culmination of sales and the local minimum of the underlying asset’s price. The decline was stopped by the intersection of the 0.786 Fibonacci retracement and the boundary of the descending channel. The shape of the hourly candle with a long lower shadow also confirms that the target was reached and indicates where buyers entered the game.

Further, they had to break the descending trend from March 16, indicated on the chart with in orange, after which event the market received the signal about the reversal of the trend.

Bitcoin Price Drops to $7,240 as Bears Triumph; High Time for Buyers to Step In

Despite the extreme exhaustion of the bulls, who spent all last week resisting attacks on the price of the main asset, the four hour chart shows a long green candle with short shadows — a sure sign of changing mood in the market. Purchase volumes are also worthy of attention — we haven’t seen such values since February 6. After reaching the mirror level $8,480, the price corrected to the 0.618 value of the Fibonacci grid, where we will continue to see the confrontation between bulls and bears.

Bitcoin Price Drops to $7,240 as Bears Triumph; High Time for Buyers to Step In

Though this may sound dramatic, the outcome of the battle will determine the further fate of the market. Buyers have to find a reliable foothold above the $8,200 level, in order to storm the upper boundary of the global descending channel. If successful, the next growth target is the $8,750-$8,900 zone.

It’s dangerous to stay at the 0.618 Fibonacci value for too long — the market still has a lot of doubt and uncertainty. If the bulls don’t have enough strength to continue growth, investors will start booking even small profits (though for the majority, just a reduction in losses), which could lead to another drop to the level of $7,800-$8,000. To readers who haven’t made purchases near the decline targets that we indicated, we recommend waiting for the final confirmation of the trend change.

ETH/USD

While the behavior of Bitcoin price was predictable enough, Ethereum gave us an unpleasant surprise — the minimum value was $450, which corresponds to the level at the end of November. What is permissible for altcoins outside of the top 10, is not permissible for an asset which is in second positions in terms of capitalization. Due to this fact, we must allow that the investment potential of Ethereum is somewhat reduced for the short term.

Bitcoin Price Drops to $7,240 as Bears Triumph; High Time for Buyers to Step In

At the moment, the price is $530 and trying to return to the borders of the previous descending channel. If the reversal of the market trend is confirmed, this is sure to happen, and the next growth target will be the $625 level. The next target after that, according to the Fibonacci expansion, is $730, but before that the bulls will have to storm the upper boundary of the descending channel, which can be a challenge. So, in this situation, we are expecting a local maximum at the $700 level. For holders of long positions we recommend to partially close them as they reach the breakeven point (depending on the price at purchase). 

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