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Eyes $10,000
BTC: Price: $10,600 | MCAP: $190 billion | 24-Hr Volume: $19.18 billion
Short-term trend: Bearish
Bitcoin is looking south, having dived out a descending triangle on the back of high selling volumes on Tuesday.
The 5- and 10-day moving averages (MAs) are reporting bearish crossover and the 14-day relative strength index (RSI) is holding in bearish territory below 50.00. Further, the moving average convergence divergence histogram has crossed below zero, confirming a short-term bearish reversal.
So, the cryptocurrency appears on track to test the psychological support of $10,000. The drop to that key support, however, could be preceded by a price bounce to $10,700, as the hourly and 4-hour charts are reporting bullish indicator divergences and oversold conditions.
A violation at $10,700 would expose $11,000. A short-term bullish revival needs a UTC close above $12,000 – a level which acted as a stiff resistance in the six days to Aug. 10.
Long-term trend: Bullish
Bitcoin snapped its five-month winning streak with moderate losses in July. More importantly, the cryptocurrency created an inside bar candle, a sign of consolidation or exhaustion following a stellar rally from April's low near $4,050.
Even so, the path of least resistance remains to the higher side as the bullish structure on the monthly chart is intact.
For instance, the falling channel breakout confirmed in April is still valid. The 5- and 10-month moving averages continue to trend north, indicating a bullish setup. Further, on the 3-day chart, the 50- and 200-candle moving averages (MAs) have produced a golden crossover, the first since Feb. 3, 2016.
However, a deeper correction to $7,500 cannot be ruled out, if prices drop below $9,049, validating the inside bar pattern.
That said, the long-term bullish outlook would be invalidated only if prices print a UTC close below the 200-day MA, currently at $6,417.
Read Analysis
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Lisk Up Ever So Slightly
LSK: Price: $1.21 | MCAP: $192.2 million | 24-Hr Volume: $9.3 million
Short-term trend: Bull potential
LSK is today's best performing crypto in the top 100 at CoinMarketCap, up 29.1 percent after the bulls managed to rally from a bear breakdown witnessed late yesterday evening.
The momentum has since stalled within the falling wedge pattern (typically viewed as bullish) but may offer another challenge to the upper sloping trendline by the end of today's close.
That move would be supported by the awesome oscillator should it pass above 0 within the next day or so with a strong histogram bar reading.
Long-term trend: Bearish
The continuation of the lower high market structure places the onus squarely on the bulls to push beyond and close above $1.82 in the long-term should they have any chance of reversing the ever increasing risk of lower lows.
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| MaidSafeCoin Under Pressure
MAID: Price: $0.17 | MCAP: $114.4 million | 24-Hr Volume: $66.2 million
Short-term trend: Bearish
Down 11.75 percent on the day, MAID has struggled to produce a new significant high since June 28 marking further downside in the week to come should it fail to close above the 61.8 percent Fibonacci retracement at $0.26 this week.
The awesome oscillator is also pointing towards a greater pullback from August 12's short-lived rally, with a target etched along the 78.6 percent Fib retracement at $0.16.
Long-term trend: Bearish
The long-term trend would be confirmed with a daily RSI move below 50 signifying the loss of bullish momentum as it fails to produce new highs.
A reversal to the bearish trend would come in the form of a strong close above $0.28 by month's end.
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A failed breakout is almost as good as a bearish reversal confirmation.
Bitcoin confirmed a bull flag breakout on the 4-hour chart on Aug. 6, as seen in the above tweet. A flag breakout is a continuation pattern which often accelerates the preceding bullish move.
In BTC's case, the preceding move was the rally from April's low near $4,050 to the 17-month high of $13,880 hit on June 26 and the flag represented a bullish pause or a six-week-long consolidation.
Therefore, the breakout witnessed on Aug. 6 signaled a resumption of the rally from $4,050 and had opened the doors to $20,000 (record high).
The bullish setup, however, was short-lived and prices fell back inside the flag on Aug. 12.
A flag breakout is widely considered a strong bullish continuation pattern. So, failed flag breakout (or fakeout) represents bullish exhaustion. Hence, @SatoshiFlipper is right in calling a short-term bearish reversal in bitcoin.
Also, the analyst is now bullish on alternative cryptocurrencies. That sounds logical, as BTC's failed breakout could trigger a rotation of money out of the top cryptocurrency and into the oversold or cheap alternative cryptocurrencies.
The rotation has already begun and is better represented by the pullback in bitcoin's dominance rate (TradingView data) from the recent high of 71.45 to 68.60.
Read: ���Crypto Trading 101: Bull and Bear Flags (And What They Mean for Price) |
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| 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. |
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