Market Outlook: Crypto Bulls Rally After Bearish Downturn

Bitcoin cash (BCH) is below litecoin’s market cap in fifth position as each coin is trading for … Bitcoin cash (BCH) price on July 18, 2019, at 1 p.m. EST.

Since July 13, digital currency prices have dropped in value significantly, but most coins have since experienced some recovery. While many crypto supporters are optimistic on where the markets are headed, traders and analysts have noticed a bullish-to-bearish trend. BTC and a slew of other currencies spiked more than 10% at 11 a.m. EST on Thursday, however, indicating the bull market is still in play.

Also read: Ignore Crypto Twitter – Life as a Nocoiner Isn’t That Bad

The Bulls Are Back in Town

On Wednesday, cryptocurrency bulls were seemingly exhausted and bears had temporarily taken the reins, clawing back prices over the last week. Currently, the overall market capitalization of the entire cryptoconomy is $281 billion with around $83 billion worth of 24-hour global trade volume. The leading digital asset by market valuation, bitcoin core (BTC), is down over 8% over the last seven days. One BTC is trading for $10,622 after touching a low of $9,165 on Wednesday. BTC is followed by the second largest market cap held by ethereum (ETH) which has dipped by 17% this past week.

Market Outlook: Crypto Bulls Rally After Bearish Downturn

ETH is swapping for $225 per coin at press time as the cryptocurrency recovered 5.2% of its losses over the course of the earlier morning trading sessions. Following ethereum, ripple (XRP) is trading for $0.32 per XRP, down by 2.3%. Litecoin (LTC) is swapping for $101 per coin and down 1% over the last seven days. Bitcoin cash (BCH) is below litecoin’s market cap in fifth position as each coin is trading for $318, down 7% for the week.

Market Outlook: Crypto Bulls Rally After Bearish Downturn
Bitcoin cash (BCH) price on July 18, 2019, at 1 p.m. EST.

Analyst Insists Libra Scrutiny Pushed the Price of BTC Down

This week has been interesting as U.S. congressional leaders discussed cryptocurrencies at great length to attempt to understand and regulate Facebook’s upcoming Libra coin. Public blockchains like BTC were described by politicians and cryptocurrency advocates over the last two days. Financial columnist and market analyst Naeem Aslam thinks the Facebook Libra investigations and politicians probing BTC pushed crypto prices lower. Most of the questioning and debate in Congress this week revolved around the creation of Libra, the cryptocurrency Facebook plans to launch in 2020.

Market Outlook: Crypto Bulls Rally After Bearish Downturn
Alexandria Ocasio-Cortez (D-NY)

For instance, many Democrat representatives including Alexandria Ocasio-Cortez seem to be against Facebook’s coin concept during the hearings. The New York Democrat representative asked Libra CEO David Marcus who backs the financial underpinnings of the planned Facebook currency. “So we are discussing a currency controlled by an undemocratically selected coalition of largely massive corporations,” Ocasio-Cortez said to Marcus, unimpressed with his testimony. Financial Services Committee representative Patrick McHenry (R-N.C.) commended Satoshi Nakamoto’s creation, meanwhile. However, Aslam writes this week that the congressional hearing and “the scrutiny of Facebook’s cryptocurrency has hit bitcoin’s price.” Sharing his opinion on July 17, the analyst stated:

Speaking purely from a price action perspective, the Bitcoin price declined as much as 8.9 percent during the hearing and for the week it is down nearly 16 percent. The price has found its support near the 50-day moving average which is trading at $9,311. If the price falls below the 50-day moving average, it is likely that the price may continue to move lower and find support around the area of $7,418. The 242-day moving, which has an impressive track record, is something that I am looking at closely. It is trading at $6,983 and the price must stay above this line in order for the bulls to keep their hopes alive.

Market Outlook: Crypto Bulls Rally After Bearish Downturn
Bitcoin Core (BTC) price on July 18, 2019, at 1 p.m. EST.

The Dotcom Era

Ceteris Paribus from the crypto analytics firm Messari believes the current BTC market cycle is very similar to Amazon stock during the dotcom bubble. “Not all bubbles are created equal — The latest BTC cycle mirrors Amazon during the dot-com bubble, but the recovery has been much more swift — Even with the recent sell-off, bitcoin is 54% down from its high, vs. the 85% Amazon was trading at over a similar timeframe,” Paribus tweeted on July 17. “Why is this relevant? While different assets, they both traded on pure speculation — Bubbles follow similar patterns, but the quick BTC breakout has been extremely bullish. Only natural to see a bit of a pullback here — Still much further ahead than most people imagined in December.”

Market Outlook: Crypto Bulls Rally After Bearish Downturn
Ceteris Paribus says BTC market cycle is very similar to Amazon stock during the dotcom bubble.

Miners Will Defend the Price of BTC

According to trader and analyst Filb Filb, miners will defend the price of BTC if it sinks to a certain point. “I have seen a lot of hysterical calls for bitcoin to find new lows and want to revisit a logical economics-based approach which helped me call the 2018 bottom to near perfection and why I do not believe bitcoin will find new lows,” the trader wrote on Wednesday.

Market Outlook: Crypto Bulls Rally After Bearish Downturn
Will miners defend the price at a certain point?

By using certain tactics, miners will always maximize their rate of returns. “As Satoshi said himself rightly pointed out that commodity costs are likely to gravitate to production cost. Why? Because miners will sell into demand where revenue per unit > MC. Likewise, collectively they are disincentivized to sell when revenuedeclared. The popular trader added:

We have also seen the pre halving hype bottom out at 2x the cycle bottom historically — Go look for yourselves. Coincidence? I think not.

Money Managers Scour Forums and Social Media for Cryptocurrency Price Clues

According to a Reuters interview with Bin Ren, CEO of Elwood Asset Management, hedge funds and money managers are using algorithms capable of identifying cryptocurrency price clues throughout forums and social media platforms like Twitter. Reuters reports that the use of these algorithms has been growing fervently among traditional market managers. “It’s an arms race for money managers — Very few players are able to implement and deliver it, but I believe it is highly profitable,” Ren told the news outlet. Moreover, Bitspread, the digital asset management service based in London and Singapore, also uses social media algorithm techniques to profit.

“It’s a matter of gathering all the info, trying to understand who is trading where, what kind of liquidation can appear,” Bitspread CEO Cedric Jeanson said. “It’s a strategy that makes sense.”

Market Outlook: Crypto Bulls Rally After Bearish Downturn
Reuters reports that money managers are combing social media posts and forums for leads toward crypto price clues.

Despite the Possibility of BTC Prices Declining Below $7K, Market Parabola Is Still in Play

Well known Twitter cryptocurrency analyst Mr. Anderson detailed that BTC has very strong parabolic trend lines and the lowest band is under $7K. Essentially this means that despite BTC’s current price decline, the bull run could still be in play. For instance, despite the 10-25% dips for most digital assets within the cryptoconomy, the majority are still way up in comparison to the December 2018 lows.

Market Outlook: Crypto Bulls Rally After Bearish Downturn
Mr. Anderson’s Parabolic Curve chart.

Any of the parabolic trend lines could act as a support for BTC but calling large ones is very difficult according to Mr. Anderson. “BTC Parabolic Curve: Calling the end of a large Parabolic Curve is NOT EASY — It seems obvious and that is why it is hard. We already have a couple of fairly logical para-trend lines that we had to cancel and we have a couple more that may end up being canceled as well,” Anderson explained on Twitter in reference to his parabolic trend line chart.

Worldwide Economic Fears, Cut Interest Rates and a No-Deal Brexit

Overall, digital asset markets have still gained significant value in the midst of worldwide economic fears. However, retail sales in June were better than expected according to economists and the jump in spending has given them hope. However, in the U.S. some speculators believe that the Federal Reserve might cut interest rates when members of the Fed convene on July 30-31. According to reports, the U.S. Treasury has already priced in the rate cuts in order to bolster loans and lending rates for mortgages.

Market Outlook: Crypto Bulls Rally After Bearish Downturn
After someone succeeds Prime Minister Theresa May, many believe Brexit will happen.

Moreover, the possibility of a no-deal Brexit is being debated across the U.K. and EU. Economists fear that the U.K. will finally leave the EU monetary system, but waiting for Prime Minister Theresa May’s successor has paused an impending Brexit. With economists watching the global economy closely and politicians scrutinizing digital currencies, how all of this madness will affect cryptocurrency markets going forward is anyone’s guess. Today’s price breakout at 11 a.m, however, suggests that the crypto bulls are still in the game.

Where do you see the price of BCH, BTC and the cryptoconomy going from here? Let us know what you think in the comments below.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”


Images via Shutterstock, Trading View, Bitcoin.com Markets, and Coinlib.io.


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Bitcoin Price: $10000 This Week?

Bitcoin’s year-long rally is creating a sense of urgency among traders to buy more while prices are still relatively low. The fear of missing out (FOMO) …

Bitcoin’s year-long rally is creating a sense of urgency among traders to buy more while prices are still relatively low. The fear of missing out (FOMO) could send bitcoin surging past $10,000 as early as this week, according to Naeem Aslam, chief market analyst at ThinkMarkets.

$10,000 Bitcoin?

In a recent note to ThinkMarkets subscribers, Aslam said he expects bitcoin to pierce above the coveted, yet highly elusive, $10,000 mark either this week or next.

From CCN:

“Technically speaking, I think bitcoin price is likely to blast through level of 10K this week or by next week if the momentum continues at this pace… “The price is trading well above the important moving averages, 50, 100 and 200-day simple moving averages and the most important among all of them is the 242-day moving average.”

Aslam doubled down on this bullish forecast in a Monday tweet, where he said a FOMO-inspired rally was building.

Folks get ready for the #Bitcoin price to blast through the 10k

A major FOMO is about to be triggered

— Naeem Aslam (@NaeemAslam23) May 27, 2019

Aslam has had a pretty good handle on bitcoin’s price trajectory. Two months ago, he accurately predicted that BTC could surge to $6,500 very soon.

The bitcoin price spiked above $8,900 on Monday, reaching its highest level in a year. The leading digital currency is currently trading at $8,670 on Bitstamp, down slightly on the day. The technical outlook has not changed: bitcoin remains in heavy accumulation and momentum is firmly on the side of the bulls. The 200-day moving average looks like a distant memory at this point.

Bitcoin Price
The bitcoin price (BTC/USD) remains in heavy accumulation, pointing to further upside potential in the short term. | Source: TradingView.

All About Accumulation

Bitcoin’s strong upside is being guided by an accumulation frenzy, with whales, retail traders and even institutions buying and holding the virtual currency for the long haul. Case in point: 60% of all bitcoin have not moved in one year. That’s equivalent to 10.5 million BTC.

Regarding accumulation, bitcoin’s unspent transactions have surged to record highs. In fact,, the number of unspent transaction outputs ont he Bitcoin network has been rising in linear fashion since mid-2018. Read more: Five Reasons Why Bitcoin is Surging.

The path to $10,000 appears to be a foregone conclusion at this point. The market has only experienced a few major corrections since the bull rally began and the largest of those was caused by an anomaly (read here). In terms of technical levels, the next major targets for the bulls are $9,000, $9,500 and $9,600 en route to the five-figure level.

A big correction will likely be in the cards at some point, though the extent of the pullback is subject to a high degree of speculation. The upcoming halvening event, scheduled for May 2020, is creating a sense of urgency to buy and hold BTC in anticipation of further price gains.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Charts via TradingView.

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‘Strong Signals’: Crypto Winter Might Be Over, Bitcoin Could Surge Past $100000, Analyst Argues

Naeem Aslam, the chief market analyst at ThinkMarkets, a financial services firm focused on forex, equities, and cryptocurrencies, has noted that …

Naeem Aslam, the chief market analyst at ThinkMarkets, a financial services firm focused on forex, equities, and cryptocurrencies, has noted that “questions are being asked constantly when it comes to Bitcoin’s (BTC) battle with the $4,000 mark.”

Aslam, a business and financial economics graduate from the University of Leeds, argued in a blog post (published on March 19th, 2019) on ThinkMarkets that “the result of this battle sets the tone for a bullish or bearish trend.” He explained:

Since December 14th, 2018, there have been several battles between bulls and bears at the price level of $4,000. In each of these battles, bulls have lost the war because after the first attack at the $4,000 level, the bears have been able to gain enough strength to push the price back below this critical mark. It is in this essence, that this level has become a matter of life or death for crypto traders.

Aslam, who received his qualified financial advisor certification from the University College Dublin, stated that “if you are a long-term investor, you will not really worry about these short-term levels.” He also wrote:

The element of risk premium is of critical importance here and I find this immensely interesting … For instance, Bitcoin … is trading at $3,962 [at the time of writing this article] and the recent meaningful low was formed on March 4th when the [cryptocurrency] touched the price level of $3,671. The difference between the two is your risk premium.

He added that “it is all about making an intelligent choice and buying when the price is still close enough to its bottom. For investors who are buying at these levels, they usually have a target of [the] previous high, and for Bitcoin, it needs to be the level of $20K.”

“High Chance” Next Bull Market Will Push BTC Price Past $100,000 

According to Aslam, there is a fairly “high chance” that the next cryptocurrency bull market will push the price of bitcoin (BTC) “over $100,000.” He also believes that Bitcoin’s value can potentially surge to $400,000 and that “crypto winter is coming to an end.”

Going on to explain why he thinks that cryptocurrency prices will recover, Aslam pointed out that in 2011, bitcoin’s price dropped about 93% from its all-time high (at that time). In 2014, BTC price fell by 84% from its previous high and “as for the most recent price crash … the most important part is that the price has started to rally [again].” Because bitcoin price “broke its longest streak of monthly losses,” Aslam believes it’s “the strongest signal” of the beginning of another crypto bull market.

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Taking Long Positions in Bitcoin is Comfortable: Former BoA Trader

Taking long positions in Bitcoin should be comfortable for traders, according to Naeem Aslam. The former equity trader with the Bank of America said …

Taking long positions in Bitcoin should be comfortable for traders, according to Naeem Aslam.

The former equity trader with the Bank of America said Thursday that he would purchase bitcoin if the crypto-asset compliments a crucial technical indicator.

Dubbed as Moving Average, it allows traders to calculate an average asset value for a given period after removing noisy price movements.

Should you buy #Bitcoin now? Here is a methodological approach which can help you.$XRP token is still holding above 0.30 and it shows bears are running out of steam pic.twitter.com/Hvi0zatQCK

— Naeem Aslam (@NaeemAslam23) February 28, 2019

200-Week Moving Average of Bitcoin a Crucial Support

Aslam illustrated a weekly chart, which showed BTC testing a 200-week simple moving average as support. According to him, if traders buy BTC above the said support, they would be technically purchasing the asset at a prime rate.

For instance, if the bitcoin price at press time is $3,966, and its previously established bottom was at $3,100, then a trader would purchase bitcoin by paying an additional $866.

Illustration of a similar bitcoin chart used by Aslam | Source: Tradingview.com

“For over the span of two to three to four years – that’s how the life cycle goes when it comes to the price action – paying a premium on bitcoin is not a big problem if it is going above $20,000,” explained Aslam. “So that is where the argument is.”

Aslam’s argument followed months of discussion about whether bitcoin established its bottom near $3,100. Many analysts predicted that the cryptocurrency was due to another bearish breakdown.

Bloomberg in December 2018 reported that they expected BTC to drop as low as $1,500 in the coming months. Nevertheless, the cryptocurrency managed to float above the said bottom since its first marking.

But, according to Aslam, 200-week moving average represents a strong bull case. The chief market analyst indicated that BTC wouldn’t fall into a bull trap as long as it’s price stays above the average. At press time, the 200 SMA on BitFinex is near $3,379.

Zooming In

Illustration of a similar bitcoin chart used by Aslam | Source: Tradingview.com

Aslam also discussed the interim factors that were driving his bitcoin positions. He noted a lower low developing out of a recently-started downtrend.

While the bearish move didn’t mature into a breakdown action, Aslam said that he would be more likely to take long positions in BTC if price forms a higher high. In simple terms, the upcoming candle formations lowest price should be higher than the lower low indicated in the chart illustration above.

While Aslam’s prediction expires in a three-four year span, traders are already battling with an active resistance area which would need breaking in the near-term. Bitcoin has failed to cross above $4,299-4,488 range since November 23, 2018.

Speculators believe that the launch of Bitcoin derivatives, including futures and exchange-traded fund, would bring billions of dollars into the industry. And then, the bitcoin rate will push beyond the said range.

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Bitcoin Plunges Below $4000, Is $3000 Next?

On Sunday, bitcoin touched a low of $3,657.60 and was last trading at $4,116, up 4.74% on the day, according to Kitco’s aggregated charts. “Bitcoin …
Bitcoin Plunges Below $4,000, Is $3,000 Next?

(Kitco News) –Bitcoin briefly fell below its most recent support level of $4,000, with some analysts now saying that a breach below $3,000 could be next.

On Sunday, bitcoin touched a low of $3,657.60 and was last trading at $4,116, up 4.74% on the day, according to Kitco’s aggregated charts.

“Bitcoin has broken some key levels and serious questions are being raised about price stability,” ThinkMarkets chief market analyst Naeem Aslam said in his special report on bitcoin.

Aslam warned that if bitcoin were to break its $4,000 support level, that would open the door to further weakness.

“One can only pray that the price doesn’t break below this critical level because this would open the floor towards the $3,000 level,” he said.

Kitco’s senior technical analyst Jim Wyckoff also sees more weakness ahead. “Bitcoin bears have the solid overall near-term technical advantage and still have downside momentum to suggest still more price pressure in the near term,” Wyckoff wrote in his latest bitcoin update.

The popular cryptocurrency saw increased volatility come back earlier this month, which triggered a downward spiral — first breaching the $6,000 support level, then $5,000 and now $4,000.

In light of this, long-standing bitcoin bull Tom Lee, co-founder of Fundstrat, slashed his year-end price forecast to $15,000 from $25,000 last week. And with bitcoin still falling, it remains to be seen if Lee will make further cuts to his still very generous outlook.

“Days like this, it does make me wonder” he told CNBC on Tuesday. “This past few days has definitely been a negative development.”

Bitcoin’s downfall is coinciding with the cryptocurrency’s one-year rally anniversary, when prices hit a record high of nearly $20,000 on December 17, 2017.

But, despite the massive 78% drop since December of last year, some analysts remain cautiously optimistic.

“Bitcoin has survived and is still here, with many positive indications on the horizon, even as it continues to trend lower in the short term,” wrote Nathan McDonald, CEO of All Things Luxury and financial journalist for Sport Money. “Hope remains for those who still wish to see it, and the community that once surrounded it, return to prosperity, hopefully avoiding some of the mistakes of the past.”

When it comes to bitcoin traders, many remain loyal despite the plunge in prices.

Former Republican Congressman Ron Paul’s annual Twitter poll once again revealed that his followers preferred the popular cryptocurrency over gold.

Lately, bitcoin prices have partly been driven by the news surrounding U.S. regulators reportedly expanding their investigation into cryptocurrencies to see whether last year’s massive bitcoin rally was triggered by market manipulation.

At the center of the investigation is an allegation that traders used tether — another cryptocurrency — to control bitcoin’s price during its unprecedented rally, which saw prices jump from around $5,500 in November of last year to nearly $20,000 a month later.

Another driver impacting prices has been disagreements within the bitcoin developer community in general, added Aslam.

“This is because, developers, on the one hand, try to convince the world that the supply is limited and, on the other hand, they keep looking at ways of triggering another kind of forks. Forking has become so common that it puts at risk the notion of limited supply altogether,” he wrote.

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