Analyst Luke Martin recently suggested that with the Chinese Yuan looking to become even weaker, Bitcoin “looks like it wants to catch up.” This is implying that should the Chinese Yuan continue to shed value, Bitcoin could rally, potentially to fresh year-to-date highs beyond $14,000.
Over the past ten days of trading, we had seen Bitcoin trading inside a very tight price range between ~$9400 and ~$10,800 (which contains the 50-days moving average line, marked purple on the following chart).
The above range is also forming a horizontal triangle pattern where its apex is getting very close – it seems like a matter of days. However, usually this type of structure doesn’t ‘wait’ until it reaches the apex so that the breakout could take place at any given moment.
On the 1 hour chart for the XBT/USD pair, we can see the ascending wedge that formed throughout the middle of August. This wedge was broken two days ago on the 21st of August and has since dropped to key support at $9,800, as mentioned in my previous analysis on Bitcoin. Since re-testing key support, price action has begun to bounce, and form a short-term reversal.
MACD can be seen visibly rising at the same point in which Bitcoin created two lower lows around $9,800. This could indicate bullish divergence forming around this price point. POC (Point of Control) clearly acting as support around $10,100 as price action test this level multiple times within the last 24 hours.
Cryptocurrency markets fell hard on August 21 following the $700 price drop bitcoin core (BTC) saw during the early morning trading sessions. Most digital assets have lost 2-8% in value as the overall market valuation of all 2,000+ coins has plunged to $263 billion. Crypto price movements have been following a trend of strong volatility, having been turbulent for several weeks.
Among the top 20 cryptocurrencies, the only ones reporting over half of a percent worth gains other than Bitcoin are Tezos (XTZ), which is up about 2.71%, IOTA (MIOTA), which is up about 1.62%, and Unus Sed Leo (LEO), which is up 0.56%.
At press time, the total market capitalization of all cryptocurrencies is $268.5 billion, about 0.15% higher than this value was a week ago.
Starting with the 4-hour chart, we see that BTC has been trending down of late, in the local market structure. An inability to even make it above the 55 exponential moving average (EMA) seems to be kicking the leading crypto down to its last line of defense at $10,000.
He believes the current Bitcoin price volatility is the modern-day equivalent of the Gold run in the 70s. In an article for Forbes, Hougan notes:
“IN 1971, AMERICA ABANDONED THE GOLD STANDARD. PEOPLE DID NOT UNDERSTAND WHAT WOULD HAPPEN TO GOLD NEXT. WILL IT BE A SAFE ASSET, UNTIED FROM THE DOLLAR? OR WILL IT BECOME A “BARBARIC RELIC”, AS JOHN MAYNARD KEYNES ONCE CALLED IT? AS A RESULT, WE OBSERVED STRONG VOLATILITY WHILE THE TWO SIDES FOUGHT EACH OTHER.”
“[Circle] also believes that the major reserve currencies of the world, the major trade currencies of the world, would become digital currencies. A digital currency version of renminbi that runs on software platforms that can be run over the internet, it really creates an opportunity for China and Chinese companies . . . and bypass the western banking system.”
The U.S-China trade war continues to be the gift that keeps on giving. And in the coming days, it is set to give Bitcoin the fuel it needs to get back to its year highs. The trade war is expected to get heated up in the coming days and this is just the rocket fuel Bitcoin needs to surge and break recent resistance positions.
Not only is the date for increased tariffs by the U.S approaching, but Washington has announced even further measures towards China. This might see talks fall out and the war reaching ‘full-blown’ levels.
Investors were served another blow when Federal Reserve Chair Jay Powell stopped short of specifying any future interest rate cuts during his speech at Jackson Hole. Key points hit upon by the chair included:
- There is evidence of a global slowdown, and it’s worsened since the July Fed meeting.
- The outlook is deteriorating.
- The Fed will continue to watch developments carefully.
The co-founder of Morgan Creek Digital said that altcoins will eventually be delisted from exchanges and become worthless. As they lose liquidity, they would not be able to attract the attention of users, which will ultimately end with them being delisted from exchanges. However, he left open the door for some of them to be able to succeed in the future.
The outsized performance of crypto funds over this period might puzzle the Oracle of Omaha, a man who once described bitcoin as “rat poison squared.” Even without Buffet’s bias against crypto or hedge funds, there are a few reasons one might be surprised:
Performance fees are by nature punitive to returns during bullish periods
Creating a portfolio that can outperform skyrocketing single assets is no small feat
Crypto fund managers tend to be less experienced than their traditional counterparts
코인데스크코리아와 부산광역시는 오는 9월3일 해운대 파크 하얏트 호텔에서 디지털 자산 거래소 박람회 ‘DAXPO2019’를 연다. 각 분야 전문가들을 초청해 다양한 관점에서 디지털 자산 생태계가 맞이한 새로운 국면을 진단할 예정이다.
블록체인 기술과 산업에 전문성을 인정받는 미디어 5사가 공동으로 아시아 최대 규모 블록체인 컨퍼런스 ‘코리아블록체인위크 2019(KBW2019)’를 오는 9월 27일부터 10월 4일까지 개최한다.
9월30일부터 10월1일 양일간 그랜드 인터컨티넨탈 서울 퍄르나스에서 팩트블록의 ‘코리아블록체인위크(KBW) 2019’ 주간(9월27일~10월4일) 중 메인 행사로 열리는 디파인 컨퍼런스에는 국내외 주요 기업들과 블록체인 프로젝트들이 대거 참여할 예정이다.