Market Update Crypto Currencies Are Breaking Out

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Market Update: Crypto Currencies Are Breaking Out

Another Leg Higher For Crypto Currency

With all the uncertainty in the world it is not wonder that more and more people are turning to cryptocurrency. Over the last week news has hit the market telling of Argentine Bitcoin miners using the digital token to avoid hyper-inflation, businesses around the globe flocking to blockchains on all levels (from investment to mining to ICO’s to business applications) and even central bankers talking of digitizing national currencies. Add to this the wildly inaccurate methods we have for keeping track of fiat currency and the tug-of-war between central banks and I think it becomes clear that blockchains, digital tokens and cryptocurrency is the wave of the future. And this is leading them to break out all over the market.

Bitcoin hit a new high near $4500 only a week or so ago, even in the wake of the Segwit driven hard-split of the blockchain. Bitcoin cash is still struggling with its valuation but holding strong nonetheless, Bitcoin classic has garnered support from the broader market because it survived the split unscathed and stronger than ever before. The coin has been trading and consolidating in the $4300 range with eye at moving higher. Technical indications are bullish. Support was confirmed at the $4,000 with high volume and now the coin is moving higher within the range. The indicators are also bullish and near the bottom of their ranges suggesting that there is plenty of room for BTC to move higher.

Ethereum, the next generation blockchain, is also moving higher. This coin is to BTC what a smart phone is to your grandma’s old rotary phone and able to run complex financial applications and smart contracts. It is even possible to launch new digital currencies on the ETH platform. This coin hit a high late last month and is now moving higher after a test to support. The coin has consolidated above $300 and $320, now trading above $330, with an eye at hitting near term resistance in the $340 range. The indicators are bullish suggesting the move higher will continue with targets at $360, $420 and the all time high near $420.

Litecoin, a simplified version of Bitcoin strictly intended for point to point transactions, is also on the move. This is one of the older and more well established tokens and still a bargain trading near $50. Over the past month, over the past 3 months I should say, this token has risen 1000’s of percentage points from the $5 range to $50 making millionaires in the matter of days. Over the past month it has been consolidating below the new highs and testing those highs now. The indicators remain bullish and showing some strength, a break of the stochastic RSI above the upper signal line would be a bullish signal.

What I’ve found in the few week’s I’ve been watching the crypto currency market is that they are very fluid and liquid in their movement. Candle signals, support & resistances, technical indicators and market signals are very clear and easy to follow. Binary options traders can take advantage of these moves with brokers like IQoption, BDSwiss and Ayrex. These brokers offer access to the cryptocurrency market through binary options, CFD’s and spot forex with the promise digital wallet services in the near future.

Markets Update: Cryptocurrencies Shed Billions in Bloody Sell-Off

Cryptocurrency enthusiasts have been glued to the price charts over the last 48 hours as digital assets across the entire crypto-economy have plunged significantly. Since our last markets update two days ago, the digital currency ecosystem has lost over $30 billion and the overall market capitalization of all 2,000+ coins now sits at around $159 billion.

The Sell-Off and Shakeup

Markets have been bloody over the last few days with nearly every digital asset reaching its lowest price point of the year. Traditionally, cryptocurrency prices are usually bullish during November, but this year has been the exact opposite. Even though prices are extremely low, cryptocurrency market volumes have more than doubled over the last 24 hours. This shows that traders are playing new positions and scooping up coins at much lower prices in hopes their value will rise again.

Top 10 cryptocurrencies on Nov. 20, 2020.

Right now the price of bitcoin core (BTC) is around $4,800, but during overnight trading sessions BTC stumbled down to $4,237 per coin. Ripple (XRP) markets have been doing better than most but had dipped to a low of $0.41 per XRP. The XRP token is down 6.6% today, and over 13.4% over the last seven days. XRP is now back up to $0.46 per token according to the most recent data. Ethereum (ETH) now commands the third position among the top 10 market capitalizations and is down 35% for the week. Currently, ETH is trading for $144 per coin and holds a $14.8 billion market valuation. Lastly, stellar (XLM) has been pushed back to fifth position and is trading for $0.21 this Tuesday. Stellar markets are down 23% for the week but briefly managed to take the fourth position among the top 10 market caps.

Bitcoin Cash (BCH) Market Action

Bitcoin cash (BCH) markets took a pretty hard hit this week and prices have dropped about 54% over the last seven days. However, prices have varied depending on which exchange is being observed due to some metrics splitting the price of BCH into two. For instance, the aggregated price for BCH on data sites like Coinmarketcap show $255 per BCH, but other trading platforms like Bitstamp show a spot price of $302.

BCH daily chart.

Further, bitcoin cash trade volume globally is super low compared to the rest of the crypto-economy, with only $134.9 million global trades over the last day. This is due to a lot of exchanges which are still not servicing BCH orders, five days after the network fork. Again this has made currency pairs much different than in weeks prior as ETH is the top pair traded with BCH today, capturing 34% of all BCH trades. This is followed by BTC (29%), USDT (17.7%), KRW (13.7), and JPY (3.1%). BCH/USD markets show only 0.55% of all BCH trades are currently using USD for swaps.

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Technical Indicators

Looking at the charts on Bitstamp currently shows an average BCH/USD spot price of around $303. Relative Strength Index levels were screaming a low of -10, showing significant oversold conditions during the early morning trading sessions, but have bumped back up to around -36. The RSI and Stochastic still show conditions are oversold, but BCH prices are starting to kick back into a higher gear and these conditions may not last long.

Bitstamp BCH/USD Nov. 20, 2020.

The two Simple Moving Averages (SMA) show the short-term 100 SMA is above the longer term 200 SMA, indicating a possible trend reversal from bearish to bullish could be on the cards. Order books show a different story, however, as both sides have significantly sized buy and sell walls. On the upside, there will be some good pit stops around $360 and higher and on the backside foundational support from the current vantage point until $240.

Bitstamp BCH/USD Nov. 20, 2020.

The Verdict: Market Participants Still Confident in the Long Term

It’s hard to gauge how the cryptocurrency community is dealing with the big drops in value as many still seem confident in the long-term future of digital assets and blockchain technology. However, most crypto markets saw a huge sell-off, recording their lowest figures since Oct. 2020. The five coins that have shed the most over the last 24 hours are centrality (CENNZ), maker (MKR), aeternity (AE), waves (WAVES), and bitcoin gold (BTG). Meanwhile, Bitcoin Cash proponents are waiting for more businesses to open up services as exchanges and wallets have slowly been coming back online over the last 24 hours. According to data collected from Coinmarketcap and Poloniex , the split coin BSV has been trading at between $40-60 over the last two hours.

Where do you see the price of bitcoin cash and other coins headed from here? Let us know in the comments section 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, and Satoshi Pulse.

Crypto Today: Bitcoin breaking out of big bearish pennant

Here’s what you need to know on Tuesday

Markets

BTC/USD is currently trading at $8,650 (-1.50%) in the afternoon in U.S. hours, price action breaking out to the downside.

ETH/USD is currently trading at $167.95 (+0.10%), as the price continues to move within consolidation mode.

XRP/USD is currently trading at $0.2360 (+0.70%), a move south is being seen following a rejection at $0.2500 over the weekend.

Among the 100 most important cryptocurrencies, the best of the day are BSV $321.00 (+17.00%), AE $0.173182 (+11.49%) and BCD $0.629015 (+11.27%) and The day’s losers are CEENZ $0.062238 (-10.90%), CRPT $0.414776 (-4.75%) and NEXO $293.28 (-7.30%).

Chart of the day: BTC/USD 4-hour chart (price action breaking out from a bearish pennant)

Market

EMURGO, the official commercial arm of Cardano (ADA) has set up a strategic blockchain taskforce with Uzbekistan’s National Agency of Project Management (NAPM), the KOBEA group, a technology consulting company, and Infinity Blockchain Holdings, an investment firm. EMURGO will lead the development of a legal framework for security token offerings (STOs) and security token trading (STX) in the Central Asian country, according to a blog post on January 20, 2020.

The BCH developer known as Acidsploit announced the launch of the highly anticipated Cashfusion alpha. Interested parties can reach out to the Cashfusion developers via the team’s Telegram group to become an alpha tester. The news of the launch has got a few talking within the BCH community a great deal, as it means a significant privacy tool is coming to the Bitcoin Cash environment.

Regulation

The Reserve Bank of India (RBI) recently in court clarified that digital currencies are not banned in the country, but banking support on their trading is.

The Australian Prudential Regulation Authority (APRA) is seeking to oversee stablecoin projects like Facebook’s controversial stablecoin Libra.

In an official proposal to the Senate published on Jan. 20, APRA submitted a possible regulatory framework dedicated to fintech and regulatory technology (regtech) covering topics ranging from digital wallets to data protection. The proposed framework, “is intended not only to be fit for purpose for the current financial system but also be able to accommodate future developments and technological advances, such as proposals for global stablecoin eco-systems that have been the subject of significant attention in recent months.”

HM Revenue and Customs (HMRC), the UK tax authority, is considering investing in blockchain analytics technology to help identify crimes involving digital currencies.

Reported by Public Technology on Monday, the tax agency has published an open contract seeking a tool not only to identify illegal crypto transactions but also for tax evasion and money laundering.

Industry

Binance has officially launched P2P trading services for the Vietnamese dong. With this, Binance will now enable traders to buy, sell, and store four major digital currencies – Bitcoin (BTC), Ether (ETH), Binance Coin (BNB), and Tether (USDT) – using fiat.

Quote of the day:

Those coins can never be recovered, and the total circulation is less. Since the effective circulation is reduced, all the remaining coins are worth slightly more. It’s the opposite of when a government prints money and the value of existing money goes down.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

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