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Back Below $10K
BTC: Price: $9,910 | MCAP: $179.42 billion | 24-Hr Volume: $17.49 billion
Short-term trend: Bearish
Bitcoin has dived out a rising wedge pattern, as expected. The breakdown seen in the 4-hour chart below indicates the bounce from the Aug. 15 low of $9,467 topped out at $10,956 on Monday and the sellers have regained control.
As per technical theory, the price seen at the beginning of a rising wedge formation becomes the minimum downside target once a breakdown is confirmed. So, a drop to the Aug. 15 low of $9,467 could be in the offing.
Supporting the bearish case are a below-50 reading on the relative strength index and a negative reading on the moving average convergence divergence (MACD) histogram.
As of now, BTC is trading just below the key support of $9,974. A 4-hour close below that level would only bolster the bearish setup.
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.
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Ethereum Classic's Rally Mounting Pressure
ETC: Price: $6.14 | MCAP: $44.7 million | 24-Hr Volume: $1.08 million
Short-term trend: Neutral
Despite being up 10.44 percent on the day and one of the best performers within the top 100 at CoinMarketCap, ETC is struggling to pick up a bid after the bulls hit a point of exhaustion just below $6.38 earlier today.
Should buyer momentum push the price beyond that point on supporting volume and pressure the bears in the short-term, then look toward the top of the sloping trendline at $6.83 to see if a continuation in its price is possible, backed by strong bullish (growing) volume.
Long-term trend: Bearish
Having suffered from a bearish breakdown below the 100-period moving average on July 8, ETC has struggled to regain a foothold above that point ($7.21) illustrating the bearish outlook long-term should it fail to break the pattern with strong momentum.  |
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| GXChain Looks South
GXC: Price: $1.04 | MCAP: $67.3 million | 24-Hr Volume: $4.9 million
Short-term trend: Bearish
GXC is down 10.84 percent over a 24-hour period and looks set to test the bottom sloping trendline at $0.98 after things took a turn for the worst on August 8 when GXC dropped bearish mid-term below the 100-day MA.
The RSI and MACD lines are also trending bearish below their respective neutral zones illustrating the considerable pressure projected by sellers.
Whille the MACD signals a short-term bounce potential (coupled with an oversold RSI) the lines are bearish bid below 0 and would only flag a reversal should it move above with vigor.
Long-term trend: Bearish
After a long run-up to $2.88 on June 10 when it had completed a 94-day rally that saw 323.2 percent gains, GXC looks to continual sell-offs as prices move to test the last significant local low at $0.90.  |
Bitcoin's hash rate or computing power fell to 77.45 TH/s (tera hashes per second) on Tuesday from Monday's record high of 82.5 TH/s.
Further, bitcoin’s 24-hour average hash rate has dropped from around 78 exahash per second on Monday and Tuesday to about 73 exahash on Wednesday, according to BTC.com.
The drop in the hash rate could be associated with the heavy flooding in China's Sichuan province and the resulting damage to mining facilities.
After all, the Sichuan province accounts for 50 percent of the global bitcoin computing power, according to a report published by blockchain research firm Coinshare in June.
The province has become the hub of mining facilities because of its abundant hydroelectric energy, which is perfect for an energy-intensive activity like bitcoin mining.
Impact on BTC's price
BTC has come under pressure today. The price of a single bitcoin is currently trading below $10,000, having hit a high of $10,800 in the Asian trading hours.
Some observers like Max Keiser are of the opinion that price follows hash rate and may associate the price drop seen today with the decline in the computing power seen over the last 48 hours.
That said, a majority of experts believe the hash rate follows price. A sharp rise in bitcoin's price boosts mining profitability, which in turn leads to an increase in the mining power deployed to the network.
So, it is erroneous to say the decline in the hash rate is weighing over bitcoin's 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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