Bitcoin Review: the upward momentum stalls

Cryptocurrencies halted their upward movement. In the last 24 hours, they were struggling at a resistance zone. Bitcoin (-0.87%), Ethereum (-0.77%), Ripple (-0.54%) are almost flat, with no buying strength. The best performers are Ark (+22.68%), PIVX (+29.55%) and HTML coin (35.87%). On the Ethereum token section, there are interesting up movers such as Molecular Future (+32.36%), which is moving up since September. Also worth looking are Ripio Credit Network (+25-48%) Constellation (22.79%), and Quant (+13.62%).

The market capitalization is unchanged at $195.214 billion. During the last 24 hours, the traded volume dropped 41.4% to $26.61 billion. The Bitcoin dominance moved slightly down to 66.03%.

 

Hot News

Fireblocks, a digital asset cybersecurity firm, says that it is moving currently over $2.5 billion monthly in assets, with a 400% increase in customer growth since its launch.

The viability of the Bitcoin Lightning Network is put in question by researchers. The first issue is the economic viability for the majority of the routing nodes. Also, there are concerns regarding privacy, mainly due to the way the transaction paths are performed, as payments can be deanonymized easily. Finally, transaction costs would increase sharply if the routing nodes moved on the Lightning Network.

A recent post by The Block states that TransferGo, a Brittish remittance payments company is moving to adopt ODL (On-demand Liquidity), an XRP-based product developed by Ripple.

 

Technical Analysis - Bitcoin

Bitcoin is creating what can be regarded as an inverted Head and Shoulders pattern. After its reversal day, the price is moving slightly down inside a range between $7,000 and $7,300, If buyers move BTC convincingly above the $7,300 level, the neckline will be breached, and the full figure of the inverted H&S would emerge.

MACD is moving in a bullish phase, while the price struggles to move in the upper side of its Bollinger bands, both bullish factors.  The overall trend is still negative, though, as the price moves below its 200 and 50-period SMA.

Supports	Pivot Point	Resistances
7,000	7,171	7,330
6,850		7,490
6,675		7,650

 

Ripple

Ripple is also creating a consolidation channel between $0.2152 and $0.2267. The MACD is moving upwards, while the price seems to start breaking the descending trendline, although, if we consider the mean Bollinger line as a dynamic trendline, the price stills fails to break it, moving mostly in the lower side of the Bollinger channel. The levels to observe are the limits of the channel above indicated: $0.2152 and $0.226.

Supports	Pivot Point	Resistances
0.2152	0.22	0.2266
0.211		0.232
0.208		0.2365

 

Ethereum

Ethereum is also potentially creating an inverted head and shoulders figure. The neckline, this time, is the descending red trendline we see on the chart. The MACD is ascending, and the price starts moving above the mean Bollinger line, with increasing volume in the green candlesticks. These signs of bullishness are fragile, though. We should see a strong close above $150 to convince more buyers.

Supports	Pivot Point	Resistances
145	147	150
140		153
137		157

 

Litecoin

Litecoin is creating a figure, much like Ethereum. Currently, the price is touching the mid-Bollinger line, and its MACD moves upward, but the lack of liquidity makes any move meaningless. The levels to keep are 45.7 and 47.6, the limits of the current price-action channel.  A breach of the upper level would confirm the upside movement, but this movement should happen on substantial volume to be valid.

Supports	Pivot Point	Resistances
45.7	46.9	47.6
44		49.1
42.7		50.5

 

 

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