Bitcoin Cash Price Analysis: BCH Adds $240 Million in 24 Hours

Latest Bitcoin Cash News

As it is, Bitcoin Cash describes itself as a Bitcoin alternative and a coin which operates as envisioned by Satoshi Nakamoto: that of acting as a medium of exchange, supplementing and eventually replacing political money. And they are doing a pretty good job despite dropping market valuation, network difficulty and transactional volumes.

With the Wikimedia Foundation changing payment processors and preferring BitPay over CoinBase, donors from all over the world can make BCH contributions. Hopefully, this would help spur participation, draw demand which would eventually help lift the sixth most valuable coin from current lows. Already, there are hints of a recovery.

Aside from price action, their adoption drive is paying dividends. Roger Ver, the defender of the network in recent YouTube video said Bitcoin Cash has sealed a deal with ANA Group’s Alliance Cargo Direct. ANA Group describes itself as an inspiration of Japan providing “high-quality international distribution infrastructure utilizing our cargo aircraft”.

Unfortunately, he couldn’t divulge more because of Japan’s FSA stringent laws governing insider trading. All the same, Ver said they will make public their partnership adding that there were more publicly trading companies that would soon be looped in the network.

BCH/USD Price Analysis

Bitcoin Cash

Like XRP, BCH is on an uptrend and at the time of writing the fifth most valuable coin was up 3.5 percent. This is impressive and sets the ground for further gains that may see BCH prices rally towards $230 or higher as laid out in our previous BCH/USD trade plans.

Note that there is support even from a technical point of view. First, BCH is trending below 2017 lows meaning sellers were so vicious, they wiped out 2017 gains. Because of that, we expect a recovery, a bounce back, that will at least lift prices back to $250 or 2017 lows.

Bitcoin Cash Daily Chart

Trend and Candlestick Formation: Bullish, Breakout Pattern

Spurred by across the board shift of crypto sentiment, we expect BCH to be a benefactor. In that case, it is likely that the $70 floors set by Dec 2018 lows will be the launching pad for further higher highs in coming days. Note that BCH is trading within a short-term bull trend with caps at $250 or Dec 2018 highs. After more than 35 days of lower lows, we now have a double bar bull reversal pattern off the 78.6 percent mark.

This is bullish but there will be more reprieve for traders if there is momentum driving prices above $135—triggering risk-off traders angling to buy—and later $230—igniting risk averse traders with grand targets at $400—the main breakout level—previous support now resistance. $400 is pre-Bitcoin Cash hard fork supports and very significant in our analysis.

Volumes: Bullish

Momentum is building up. However, for bulls to be in control then we must see a high-volume break and close above $135. That means, if there would be a confirmation, then the bar must register high volumes exceeding those of Jan 28—62k and hopefully drive prices above $135 forcing aggressive traders to enter the trade. Only then will there be a bull’s confirmation.


Source
Author: Dalmas Ngetich
Image Credit

Bitcoin Bear Market Will Likely Continue Due to Low Transaction Volume, Analyst Argues

  • Market analyst Willy Woo predicts bearish crypto market trend to continue.
  • On-chain transaction volume is not enough to start a bull run, based on Woo’s NVT ratio.

Bitcoin’s (BTC) price has dropped by over 80% last year, and the value of other major cryptocurrencies has declined by as much as 99% (in some cases). According to some analysts, the digital asset market could now be ripe for a bullish run.

Willy Woo, a prominent researcher and cryptoasset analyst, recently noted via Twitter that on-chain digital currency transaction volumes were too low for prices to recover anytime soon. Woo, who accurately predicted in late May 2018 that bitcoin’s price would drop below $6,000 before showing any signs of recovery, has now argued that high levels of volatility in recent weeks could have led to the surge in on-chain volume of cryptocurrencies.

Drop From $6K To $3K Not A Sign Of Accumulation
Assessing market conditions via a tweet, Woo wrote that the “initial volume spike false signalled a faster detox and an earlier end to the bear market.” In rality, he added, it was a side effect of volatility, and the “move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.”

Woo also observed:

Going on to explain price movements in the cryptocurrency market, Woo mentioned that the Network Value to Transactions (NVT) ratio (a metric he developed) was currently on the higher side. This, according to the Exodus wallet advisor, means the value of on-chain transactions is considerably lower than the valuation of the network.

Bear Market Could Last Until Second Half Of 2019
The NVT ratio is used to estimate the intrinsic value of cryptoassets, which helps investors determine when the price of bitcoin and other digital currencies is too low or too high. Commenting on how the effects of the recent spike in volume caused by high levels of volatility has now subsided, Woo noted:

That volume has since subsided. Leaving the NVT chart on the high side of its oscillation around the main move downwards. The key thing here, in my interpretation, is it’s on the high side of its band, so I think an up move is limited, bears will win the longer term trade.

In November 2018, Woo also predicted that a bearish trend in the crypto market would continue, arguing that downward pressure on bitcoin could last until the second half of this year. He referenced data from NVTS, which he observed had dropped below its support levels. Last year, Woo had said BTC’s price would likely not be able to break past its 200-day Moving Average (MA).

He predicted (in November 2018):

If price (in the short term) bounces upwards here, which is certainly possible, I think the 200 day moving average is the upper band of the move. This is ~$7k right now. Remember if the price goes above the 200 DMA, in the history of BTCUSD’s 8-year trade history, it’s been a reliable indicator of a bear to bull transitions. It’s too early to transition out of the bear.

Bitcoin is trading at $3,859. according to CryptoCompare data, after recording an intraday high of around $3,972. The cryptocurrency market capitalization stands at just above $130 billion at press time.


Source
Author: Omar Faridi
Image Credit

Ripple(XRP) Finally Suffers Major Price Drop as Crypto Market Wipes Out $12B

The intense downtrend of the crypto market is finally having a toll on the best performing digital asset of the month.

Ripple (XRP), now the second most valuable cryptocurrency in the market, is no longer up in value on a monthly basis. Throughout the past 30 days, XRP has maintained the $0.5 level relatively well with minimized losses even during a period in which the price of BTC and other major cryptocurrencies fell by around 10 to 20 percent.

What Caused XRP to Drop?

As a liquidity network that provides major banks and financial institutions the ability to move cross-border payments with low fees, a large supply of XRP is crucial for the Ripple blockchain network to operate.

Similar to EOS, which implemented several controversial rules on its protocol to disallow investors from holding onto EOS for an extended period of time without using it, XRP needs to have a certain amount of XRP in circulation to guarantee seamless transactions for financial institutions.

In 2017, Ripple Labs CEO Brad Garlinghouse explained that XRP is placed in an escrow account and is distributed by Ripple Distribution to the public.

“The recently launched Escrow feature in XRP Ledger allows parties to secure XRP for an allotted amount of time or until specific conditions are met. For example, Escrow allows a sender of XRP to put conditions on exactly when a payment can be completed, so the payment remains cryptographically locked until the due date,” Garlinghouse said.

This week, around $16 million worth of XRP was moved from the Ripple Distribution wallet to an unknown wallet, injecting more XRP into the market.

If the supply of an asset is increased artificially and the demand from investors in the market remains the same, then it negatively impacts the value of the asset in public markets.

Over the past 12 hours, the price of XRP fell from $0.48 to $4.17 at its daily low. XRP recovered from $4.17 to $0.43, recording a daily loss against the US dollar of around 10 percent.

It is possible, given that XRP has been relatively successful in defending the $0.4 support level, that the unforeseen increase of the supply of XRP in circulation affected the short-term price trend of XRP.

What’s Happened to Bitcoin

Bitcoin has dropped quite substantially from its $6,000 support level, by more than 35 percent in the past seven days. But, the bottom is said to be in the $3,500 to $4,200 range, and BTC is expected to drop by over 80 percent in the short-term before entering a consolidation phase.

“Not convinced that we’ve hit the bottom yet. Check out the sell volume so far. If this was capitulation there would be a dramatic high volume sell off. In my opinion, the worst hasn’t come yet, but I’m preparing myself for both scenarios. Lose the bull versus bear mentality,” one cryptocurrency technical analyst said.

The volume of BTC has increased by around $3 billion in the past several days, suggesting that an intense sell-off from bears occurred and that BTC did not free fall without any sell pressure.


Source
Author: Joseph Young
Image Credit