Weekly Crypto Roundup
Konstantin Kaiser • 2 min read
The bear market is over! Bitcoin is in the midst of a new bull market. While the prospects for the cryptocurrencies market and particularly Bitcoin are very bullish, there are still chances that the rally was a major bull trap and heavy downward movement is yet to come! To understand what must happen in order for Bitcoin to remain bullish, we must take a look at the technical analysis of Bitcoin, Ethereum and the total market capitalization of all tradable cryptocurrencies.
BTC/USD DAILY CHART
Bitcoin broke the 4-year trendline resistance which now acts as support. While the EMA golden crossover acts as confirmation of the end of the bear market, the major resistance between $6000-$6800 must turn into a support in order to maintain the bullish momentum. If both the major support at around $6000 and the 4-year-trendline fail to hold, Bitcoin finds its next minor support at $5400-$5800. Chances are that Bitcoin reaches as low as $4200, but the golden pocket ratio as well as the 200-day-EMA and 50-day-EMA, act as support and brilliant entry level for a potential long position, at around $4700-$5000. Bitcoin must stay above $4200 to assume the beginning of a new bull market. If Bitcoin falls below $4200, the bear trend remains intact.
However, the current outlook is extremely bullish, although a short-term correction is overdue. Thus, we can assume $3300 as the bottom of Bitcoin, as long as we stay above the major support at $4200. Consequently, the prospects for 2019 are extremely bullish. Bitcoin might be on its way to a new ATH this year.
Ethereum recently touched the $200 mark. With currently being in strong resistance area and the RSI performing a bearish divergence, we can assume a correction to the downside. While the 50-day-EMA could act as support at $165, Ethereum finds its next major support at around $130. For now, it seems likely that Ethereum retraces down to the $150-$165 area, which is a strong psychological level. In order for Ethereum to turn fully bullish, Ethereum needs to break the $200 resistance in a weekly candle.
TOTAL CRYPTO MARKET/ USD
The total market capitalization of the currency market is currently in a strong resistance area, between $180b and $220b. While a retracement seems very likely for now, due to the bearish divergence in the RSI as well as the strong resistance area, the cryptocurrency market might find support at $155b-$165b, where the 200-day-EMA and 50-day-EMA act as additional support.
If this support level fails to hold, it seems likely that the cryptocurrency market bounces off the golden ratio level at $138b-$142b. This would be very bullish indeed. One thing’s for sure, as long as the major support at $128b holds, we can assume further upward movement in the upcoming months.
The biggest gainers of this week were:
Arcblock, which surged by 175 percent,
Solve, which gained by 111 percent and
Cova, which rose by 104 percent.
Although Bitfinex still seems to be in financial difficulties, the tether premium vanished and trading pairs on Bitfinex are equal to other exchanges. What’s more, Binance was hacked and 7000 Bitcoin were stolen. The SAFU insurance fund of Binance will recover all losses of its users.
However, the market turned bullish despite the negative headlines. In even more bullish news, BTC-trading desk of Fidelity Investments will soon go live and open the gate for accredited investors and institutional money, according to btc-echo.