Posted on

Bought the Dip? Cryptocurrency Rallies After Weekend Drop

Cryptocurrency Price Analysis 2019

The crypto markets continue to rally after the weekend dip, with investors developing a more bullish outlook.

While the month of April has been extremely profitable for Bitcoin and altcoins, with the majority of top 10 coins up 50 percent or more, analysts have been debating the direction of the market. On one hand, bearish analysts are predicting a price retraction for Bitcoin, claiming that the market is entering overbought territory. Cryptocurrency fell throughout the majority of 2018’s calendar year, and has built a fair amount of detractors who find it difficult to believe that the asset is in for a resurgence.

However, April 2019 is challenging the notion of a “crypto winter,” with coin prices soaring across the board. Bullish analysts such as Fundstrat’s Tom Lee, who publishes regular updates including his Bitcoin Misery Index (BMI), believes that the currency is giving positive indicators. While Tom Lee’s most recent BMI publication found BTC to be at its highest level in years (with a higher BMI indicating positive sentiment), it also complicates the price analysis for the coin. Elevated BMI has historically indicated a reversal in price on the near horizon. But, as Lee points out, Bitcoin’s current BMI is much higher than values typically seen in a bear market, leading the analyst to conclude that the market is entering a bullish phase.

Adamant Capital, a market research firm, is also reporting that Bitcoin’s price could take off shortly. According to the firm, Bitcoin and the crypto markets have entered an “accumulation phase,” with long-time holders and institutional investors increasing their position at current BTC prices in anticipation of an increase coming. Adamant is highlighting decreased price volatility in conjunction with unrealized profit & loss (P&L) as a strong indicator that retail investors sold out of crypto in the severe price fall of November 2018. With the glut of bearish sellers depressing the price of Bitcoin gone, the currency is opening up a corridor for a bull run–the type of price anticipation that is leading to the current accumulation phase.

Other cryptocurrencies are benefiting from the positive price movement hitting the cryptocurrency marketplace. Cardano ADA posted a 5 percent gain on the day, as investors look to a possible Coinbase listing to catalyze the price further. Binance Coin BNB has continued to be one of the largest gainers in 2019, with the currency posting a 300 percent price increase since the start of the year.

Some of the market analysis is now shifting to whether Bitcoin or altcoins will benefit most from a cryptocurrency rally. Historically, Bitcoin gains have been followed by investors shifting profit into alts, with the opposite occuring during periods of BTC dips. However, the broader industry of cryptocurrency has changed in 2019, with adoption extending beyond just Bitcoin.

BTC, as the market leader, will continue to draw the majority of interest and development focus. But currencies like EOS and TRON are building strong followings through their network and DApp platforms, which could in turn lead to greater investment that is not exclusive to BTC.

The post Bought the Dip? Cryptocurrency Rallies After Weekend Drop appeared first on Ethereum World News.

Posted on

Bitcoin Down 6%, Market Loses $22 Billion in a Day

Bitcoin (BTC), Cryptocurrency–Despite the significant gains Bitcoin and the crypto-markets posted over the weekend, nearly reaching 7000 USD for the first time since last month, 22 billion USD has been wiped from the market capitalization in less than 24 hours.

The rout began with a steady erosion of price throughout most of Monday, before taking a precipitous fall in the early trading hours of Tuesday. Cryptocurrency investors on the East Coast awoke to Bitcoin being down 6 points, with every coin in the top ten approaching or eclipsing double-digit losses (EOS fell the hardest with a 14% price drop as of writing).

While most investors were cautiously watching the market throughout the weekend’s price gains, Monday brought about a number of reports to suggest that the turnaround would be short-lived. Given the relative low trade volume and lack of momentum in the upward price movement, several analysts predicted that the currency would find trouble eclipsing the 7000 USD mark, and that a slide back to 6000 USD levels could be inevitable. Investors responded with a timid day of trading on Monday, seeing almost all currencies fall into a slow erosion of the weekend’s price gains. Early Tuesday morning brought about the precipitous drops that led to the present state of the crypto market, with nearly 23 billion USD taken from the market cap in a number of hours.

CoinTelegraph reports the price fall came in response to several prominent economists voicing their displeasure with cryptocurrency on Monday, going so far as to predict the digital form of money would inevitably fail.  Speaking in an interview with Financial News London, Joseph Stiglitz, Nouriel Roubini and Kenneth Rogoff cite the increased pressure of government regulation as precipitating the downfall of cryptocurrency, stating that no government could continue to allow the “nefarious” activity prompted by the growing industry. In particular, Stiglitz, who holds a Nobel Prize in Economics, posits that the anonymity afforded through Bitcoin (and other cryptos) goes against the virtues of a transparent banking system (the interviewer failed to question the economists on whether HSBC’s billion dollar money laundering of drug cartels qualified as either nefarious or transparent). In addition, the economists conclude that Bitcoin fails to meet the criteria of money, having no intrinsic store of value and too high of a price volatility to be used as a means of exchange.

Other outlets point to the recent hack of decentralized cryptocurrency exchange Bancor as bringing about the lack of confidence in the market (ironically, the funds were stolen just days after Vitalik Buterin called for more decentralized crypto exchanges while slamming the centralized variety).

Tezos (XTZ), which experienced a wild, roller coaster ride of price swings throughout its first week of open market trading, was the only coin in the top 50 to post a percentage gain on the day. However, that came after the currency slid 15 points on Monday, before making a small recovery to 2.18 USD. XTZ is still trading well below the price of pre-exchange listing, when the coin was being speculated with IOUs at a per-coin value of 4 USD. Despite the rest of the market falling, Tezos price volatility is indicative of the market, and investors, attempting to establish a determined value for the project. The currency was originally hailed as one of the most promising projects to come out of crypto in 2017, holding a record-breaking ICO funding of 232 million USD. The subsequent year brought a number of delays to investors being issued their tokens, with several ongoing lawsuits and anecdotes of in-fighting among the team at Tezos causing the investment base to lose confidence in the project.