Bitcoin Bouncing Back Above $8,000
Early morning, Bitcoin's price headed to the downside and broke the $8,000 key level. Most of the leading cryptocurrencies follow a downside path as well. On the heat map below, covering the weekend, we can see that almost all the crypto sector is down from Friday's closing price. Binance, Monero, and DASH at the moment of this report are down over 5%, and BTC, BCH, and BSV depreciated more than 4%. Tipple is just slightly negative while ALGO is the exception with over 8% rise.
The marketcap above shows it has descended to $209.8 billion. We see also that descents are accompaigned by an increase in the traded volume.
The dominance of the main coins are:
BTC: 64.45%
ETH: 8.41%
XRP:4-76%
BCH:1.81%
LTC:1.57%
EOS:1.19%
Others: 18.81%
Hot News
Ripple is acquiring Algrim, an Icelandic engineering company focused on crypto integration projects.
Fidelity Digital Assets launched the Wave BTC Income & Growth Digital Fund, said to be the first crypto-derivatives-based yield fund.
Bakkt's Futures Contract launch caused Bitcoin Crash according to Nikolaos Panigitzoglou's and his team research at JPMorgan.
"It may be that the listing of physically settled futures contracts (that enables some holders of physical Bitcoin e.g., miners to hedge exposures) has contributed to recent price declines, rather than the low initial volumes,"
Technical Analysis
Bitcoin
Bitcoin ended the timid retracement with a high at about 8,400 and resumed the descending path. Early this morning the price went below $8,000 and made a low at $7,700 to, then, make a bounce to the %7,800-7,900 area. This confirms the breakout below the 200-day MA. The MA still has a positive slope. Short-term, the price seems to seek liquidity in the $7,000-7,500 area. So, if really this is a movement by the market makers to wipe coins from the weak hands, a visit to this area might trigger a sharp upward reaction and push the price above the 200MA again.
At the moment of this writing, BTC is experiencing a comeback to the $8,000, which, if completed, would be very favorable to the Bitcoin, since it would be making a double bottom at $7,700 and recovering a critical level.
Ripple
Ripple has been moving in a range between 0.24 and 0.25. Today, after timidly following BTC to the downside is reversing and is trying to cross the 0.25 level at the moment of this writings, following a bounce in the Bitcoin. That action breaks the descending trendline. That action is quite positive to the coin, although it is entering a region of high resistance, as that was a previous bottom. From a trader's perspective, since the trend is still downwards, it is better to wait because most of these pullbacks are just bull traps.
Ethereum
Ethereum is moving sideways in a range already traveled beginning of September. The current candlestick is a bounce off the last low, helped by the still-developing bitcoin bounce. A break above $180 would signify a strong upward movement, although, this movement could still end there for a while. Anyway, if this candlestick holds, it is an excellent argument for buyers.
Other cryptocurrencies currently bouncing, with similar charts to Ethereum are: Litecoin, Bitcoin Cash and Eos, while Monero (XLM) (below chart) is even more bullish.
Author
EagleFX Team
EagleFX
EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and
