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Crypto Market Sees 3% Pullback After A Short-Term Recovery

As Tuesday rolled around, many traders thought that the worst was yet to come for the market, with critics expecting Bitcoin to chip away at the $5,800 support as the week continued. For those who are unaware, the $5,800 level has been continually cited as a strong line of support, with analysts highlighting previous bounces around this price, along with an amassment of technical indicators.

But to the surprise of some, on Tuesday, the crypto market began a slow recovery of its recently-established year-to-date lows.

From $190 Billion To $220 Billion — The Market Recovery

The valuation of all cryptocurrencies recovered from a low of $190 billion to $220 billion within a three-day timespan, with this move restoring faith in an otherwise bearish market. A majority of cryptocurrencies saw strong gains throughout the past three to four days, with Bitcoin taking a cautious move from $5,950 to $6,600 that was backed by consistent volume.

But with this move, altcoins have seen an unexpected resurgence, with Bitcoin dominance taking a three percent dive even as the market continued upwards. As reported by Ethereum World News, cryptocurrencies like Nano (NANO), VeChain (VET), and Populous (PPT) all saw staggering gains of 30% or more, which was quickly attributed to the decreasing Bitcoin dominance figures. Traders saw their portfolios turn green overnight, and a slight sense of FOMO (Fear of Missing Out) return to the minds of optimistic traders.

However, some industry leaders aren’t convinced that the bear market is over yet. Susquehanna’s head of digital assets, Bart Smith, recently claimed that this recovery, albeit relatively strong, could just be a “bear market rally.” This sentiment was doubled-down by Dan Nathan, a CNBC trader and Fast Money panelist, who also agreed with what Smith had to say.

While Arthur Hayes, the CEO of BitMEX, still expects Bitcoin to reach and establish a low of $5,000 before eventually continuing to new all-time highs. Moreover, some analysts expect that this is a “dead cat bounce,” where the price(s) of a publicly-traded asset sees a quick recovery after a downtrend, only to fall further at a later date.

“Too Much Of A Good Thing Is A Bad Thing”

Attesting to this bearish sentiment, on Saturday, traders were reminded of the age-old saying — “too much of a good thing is a bad thing” — as the market experienced a slight pullback after the aforementioned recovery.

At the time of writing, Bitcoin is currently down by 2%, with altcoins posting similar losses. It remains to be seen whether the market will continue to head lower in the near future, but according to the traders on CNBC Fast Money, the technicals on Bitcoin’s chart has begun to show signs of weakness. CNBC analyst David Seaburg stated:

“Look at just the charts, without any other knowledge, it looks like its going lower. The technical set-up right now for Bitcoin does not look promising in my eyes.”

Michał Mancewicz

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Daily Volume Surges To $20 Billion As Altcoins Start To Catch Up To Bitcoin

The cryptocurrency market has had an amazing start to the week, with the overall market capitalization pushing the heavily contested $300 billion level. Many attributed this stellar rise to Bitcoin starting to heavily outperform altcoins, with “digital gold” rising by a few percentage points.

Volume Sees A Resurgence, From $10 Billion To $20 Billion In Two Days

As the market moved into the weekend, volume began decreasing, emulating the volume level lows seen as Bitcoin reached the $5,750 price level. This worried some, with some thinking that Bitcoin’s unexpected and rapid move past the $6,800 and $7,000 resistance levels would soon be erased, as a result of Bitcoin losing value due to low volumes.

However, over the past two to three days, volume has seen an unexpected resurgence in the market, with daily volumes quickly moving from $10 billion on Sunday to $20 billion today.

Trading volume present with a specific asset, or asset-class, has long been held as a significant indicator of the market’s interest in an asset. So as many market analysts like to point out, a surge in volume, like the one seen over the past two days, is also accompanied with higher prices, as volume figures indicate interest in investing in this industry.

Altcoins Try To Fight Back Against Rising Bitcoin Dominance 

As aforementioned, Bitcoin has seen a stellar week, easily outperforming a majority of the cryptocurrencies in the top 10. As of the time of press, Bitcoin dominance is currently at 47%, or the highest it has been since Bitcoin pushed all-time highs in mid-December 2017.

Peter Smith, the CEO of Blockchain, recently appeared on a Bloomberg interview, stating that he expects for Bitcoin to outperform the market over the next months, due to institutional clients having an affinity for the world’s largest cryptocurrency.

However, altcoins aren’t giving up the fight yet, with many altcoins starting to stage a comeback in terms of satoshi value, with cryptos like Ethereum, Bitcoin Cash, and EOS all up by over 4% or more.

Possible Indicators For Bullish Movement

As reported by Ethereum World News on Monday, a multitude of factors has been pushing the market higher. Namely speculation regarding the upcoming Bitcoin ETF ruling, along with an influx of institutional investment.

As pointed out by Brian Kelly on CNBC “Fast Money,” speculation regarding the ETF has resulted in interest from new and established investors in this industry. Kelly stated:

“I think the chances of an ETF in 2018 are relatively low. There’s still quite a few things, but that doesn’t stop speculation on that. And that’s one reason why we’ve seen this bottoming process here from $5,800 all the way up here.”

Additionally, the aforementioned CEO of Blockchain pointed out that institutional involvement in this market is starting to pick up, resulting in higher prices. He noted:

“I think right now you are seeing a pretty slow retail market and historically the market has been led by retail. You are seeing a pretty big uptick in the institutional market and that’s a lot of the reason why Bitcoin is outperforming.”

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Bitcoin Market Dominance at 45 Percent and Altcoin Prices Begin to Decline

Bitcoin is currently dominating the cryptocurrency market as the top-ranked cryptocurrency looks to achieve a 50 percent market share. While BTC remains in the green, the altcoin market is beginning to experience another decline. Ripple, Stellar, and IOTA are the biggest losers among the top ten cryptocurrencies in the market.

Bitcoin Dominance Back Above 40 Percent

According to Coinmarketcap, Bitcoin is now at 45 percent dominance of the cryptocurrency market. The last time BTC was at such a dominance level was in early April 2018. The top-ranked cryptocurrency has a market capitalization of $127.8 billion with more than $5 billion in BTC traded within the last 24 hours.

The price of BTC continues to hold steady above $7,400 with experts believing that Bitcoin could go on to reach $8,000 and $9,000 during this price rally. The consensus at the moment is that the surge is only a temporary squeeze and that another significant dip is imminent. Experts predict that Bitcoin will test a new 2018 low during the next price decline.

Altcoins Bleeding

While BTC holds steady, altcoins are bleeding, many of which are in danger of eroding the gains of the recent price increase. It is usually rare to witness such a significant decoupling of the market with Bitcoin and the altcoin market going in different trajectories.

Ripple, Stellar, and IOTA lead the losers pack among the top ten coins. Ripple and IOTA are down by 5 percent respectively while Stellar has declined by more than 6 percent. The XRP price dip is even more profound given the struggles of the token in 2018. XRP is yet to sustain any growth momentum in 2018 and has failed to hold on to the $0.50 support level gained after the July 18, 2018 rally.

Other major coins like NEO, BNB, and ICX have also experienced a massive downward slide over the past 24 hours. NEO is down by almost seven percent, BNB by 5 percent, and ICX by a whopping 11 percent.

The current downward slide is probably due to a technical correction in the wake of the July 18 price surge. The emergence of strong volume in the market points towards a more sustained price rally which should hold on for more than just a couple of days.

Do you think the altcoin price dip is a sign that the recent rally might be over? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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Monaco (MCO) Buys Crypto.Com Domain For Millions

Monaco and Crypto.com – The Monaco cryptocurrency-based project, focused on providing innovative financial services, has just bought out the Crypto.com domain from Matt Blaze.

Blaze, a well-known professor of computer and information technology sciences at the University of Pennsylvania bought the domain in 1993. At the time he registered the domain due to its relation to his interest in cryptography, hence his position as a director of the Tor Project. 

But as the cryptocurrency industry rapidly expanded, with users often abbreviating this new asset class to “crypto”, Blaze’s domain has received widespread interest from a variety of crypto companies.

Experts in website domain sales told The Verge that Crypto.com could be worth upwards of $10 million, bringing Blaze’s small investment (in 1993) to a value that is out of this world. 

But many companies were willing to pay ludicrous amounts of money for the domain, giving offers to the professor en-masse. However, Blaze never accepted any of the offers, potentially due to his apparent distaste towards cryptocurrency.

The professor’s personal website mentions his opinion on cryptocurrencies, stating:

Many cryptocurrencies are scams, and I strongly advise against their use as investment vehicles.

But alas, he has finally sold the domain to Monaco, with the deal being kept confidential. It is unclear why he had a change of heart, but some have speculated that he saw legitimacy and promise in the Monaco project, leaving the domain in good hands.

Kris Marszalek, the CEO of Monaco, gave some insight about the deal to TechCrunch, saying:

If it was only about money he’d (Matt Blaze) have sold it a long time ago.

Marszalek later gave a comment regarding Monaco’s role as Crypto.com domain owner, noting:

This is a very powerful identity that we are taking on. It’s representative of the entire category so it comes with a huge responsibility on us to carry the torch. We don’t take it lightly and this is one of the things that I think we conveyed successfully, that, as a company, we do have a higher purpose.

Monaco’s Expansion Plans: Crypto Debit Card

Some have begun to believe that Monaco is a great fit to “carry the torch” that is Crypto.com. The project has been putting the pedal to the metal, recently introducing the first batch of operational debit cards.

So far, these have worked, with videos appearing online showing legitimate purchases made with the cards. Although the first batch was successful, Monaco doesn’t plan on making the cards publicly available for the new few months. The MCO team reportedly has plans to roll out into the U.S. market as 2018 comes to a close.

Fans of the project have shown up in droves to pre-register for Monaco debit cards, with TechCrunch stating that there is a backlog of over 70,000 users waiting to get their hands on this innovative product.

MCO Doubles In Two Weeks

The recent expansion plans, in the form of function debit cards and the Crypto.com acquisition, have proved to be a great catalyst for the price of the Monaco cryptocurrency (MCO). In the past two weeks alone, Monaco has doubled, from the price of $4.5 to $8.9.

Today saw Monaco move up by over 10%, as news of the domain acquisition spreads. Many are hopeful for the future success of this cryptocurrency project, as it releases the public debit cards later this year, hopefully bringing cryptocurrency adoption to new levels.

Title Image Courtesy of Pixnio

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