Cryptocurrencies trade higher today as majors take out some important levels
|- Crypto majors are all trading higher today with Bitcoin trading 4.41% higher.
- Some of the pairs have made new wave highs breaching important levels.
BTC/USD:
After completing the prominent inverse head and shoulders pattern the price tested the support zone of the break perfectly and pushed higher today. Looking around there has been no real fundamental reason behind the move but some analysts have been pushing the undervalue oversold story in recent sessions. Today is the Bitcoin futures expiry so we could expect some volatility leading into the US close as traders may rollover contracts. The market has been selling off for some time now and leading into the halving event (14th May 2020) prices may rise as predicted.
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LTC/USD - BCH/USD - ETH/USD - ETC/USD:
Litecoin, Bitcoin Cash, Ethereum and Etherum Classic have all made similar patterns to the Bitcoin price above but in relative terms, Bitcoin has outperformed the rest of the crypto majors. Looking deeper into altcoins TRON (TRX/USD) has just pipped BTC/USD over the last 5 days after a decent performance on Tuesday.
Why was the market so bearish?
Well after it was reported that China's Premier Xi was looking into increasing the amount of blockchain-based solutions in China it seemed the crypto world took this to be a positive for cryptocurrencies. Having looked into this in closer detail it was not the case. The Chinese government are looking at more use cases for Blockchain technology, not cryptocurrencies themselves. Never have they endorsed Bitcoin, infact, they are creating their own to rivial the digital currency. This is where reality set in and the market started to tail off. But as with anything, the market finds a natural demand level or a point where assets look like good value and in this case just above the $6,500 level. So in the future, it may take something drastic to take the BTC/USD price below that point.
What is there to look forward too
ETF decisions seem to be have become a thing of the past. I believe one day this will happen eventually but there are other solutions out there. Swiss company SEBA have launched an index and 3iQ are looking to launch a fund in Canada listing on the Toronto Stock Exchange. Even some of the original ETF hopefuls have taken their projects private.
Elsewhere, Bitcoin options are on the way from both Bakkt and the CME group. Bakkt options will arrive on December 9th 2019 and the CME equivalent will be here on January 13th 2020. This may attract some more institional client money and therefore make the digital currency offering more popular.
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