Bitcoin Regains Poise

Bitcoin is again running ahead of alternative cryptocurrencies

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August 2, 2019 Welcome to the weekly edition of the CoinDesk Markets newsletter! Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter  or our private room on StockTwits, the CoinDesk Dojo.  "Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse. Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!   Buying Into Seller Exhaustion BTC/USD: Price: $10,560 | MCAP: $188.20  | Maximum Gain: +5.37% Why we were intrigued: Bitcoin was showing signs of seller exhaustion at the start of the week. Notably, the cryptocurrency created a long-tailed doji on the 4-hour chart over the weekend.  A long-tailed doji is formed when sellers push prices lower only to lose control before day’s end, allowing prices to recover the lost ground.  Hence, traders consider it an indicator of bearish exhaustion, especially when it appears following a prolonged sell-off, as was the case with BTC. The cryptocurrency fell from $13,800 to $9,100 before forming the long-tailed doji.  Further, the daily chart was also reporting seller exhaustion in the form of repeated rebounds from sub-$9,400 levels.  Hence, our analyst initiated a buy call on bitcoin on July 30, when the cryptocurrency was trading at $9,490. Prices rose to $10,000 on the following day, as expected.  As of writing, BTC is trading around $10,500 and could extend the rally to $11,120 (bearish lower high) over the weekend, as the daily chart indicators are now reporting bullish conditions.    The Trade   The Result  Zilliqa Hits Stops As Bitcoin Gains Altitude ZIL/BTC: Price: 99 sats | MCAP: 8594 BTC   | Maximum Gain: -13% Why we were intrigued: Lesser-known cryptocurrency Zilliqa (ZIL) was looking poised for a corrective rally on July 31. ZIL/BTC’s 4-hour chart was reporting a bullish divergence of the relative strength index (RSI).  A bullish divergence occurs when the indicator charts higher lows as opposed to lower lows on price. That is widely considered a warning of an impending bearish-to-bullish trend change. The RSI also made a move above 30 on the same day, further strengthening the case for a corrective bounce. The price chart was showing a bullish Renko box with a long wick – a bullish reversal sign, as per the historical data. So, a long call on ZIL/BTC was initiated on July 31 when prices were trading at 113 sats.  The move to 140 sats, however, never happened. ZIL/BTC hit a high of 119 and fell to 98 earlier today, triggering the stop loss.  The rally in BTC/USD likely played a spoil sport here. That is always a risk when trading alternative cryptocurrencies (ALT/BTC pairs).    The Trade     The Result    We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets.  Create an account on StockTwits and then subscribe! Subscribe Here   Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or unsubscribe from this list