The Current Status of the most profitable cryptocurrencies of 2019
Crypto markets were hit hard last week by a wave of sales. Bitcoin (BTC), the main currency by market capitalization had the largest decrease in the intraday price so far in 2019 reaching the minimum seen in June. However, this week both the price of Bitcoin and several of the alternative currencies has stabilized in strong support areas, some have even shown moderate gains in the last trading periods of this week so we have decided to review two of the most profitable cryptocurrencies of 2019 in order to analyze their current status and expectations for the end of the year.
On a daily basis, the Binance Coin (BNB) price structure indicates that the asset has been maintained in a fairly pronounced corrective period after retreating more than 60% from its annual maximums recorded at the beginning of June. The asset headed by the yellow house remained in the majority of September testing the annual pivot point (yellow line) in USDT 19 which resulted in a price range between USDT 20 and USDT 24. With the impossibility of Finding buyers in the aforementioned areas the asset rushed to a greater liquidity area exposed by the VPVR volume nodes (blue and yellow bars) around USDT 15 where it has stabilized last week.
The exponential moving averages of 50 and 200 periods (green and red line) are excellent indicators to determine the general trend of an asset. BNB are currently making the so-called “death crossing” that marks the beginning of a prolonged downtrend. By September 2018, Binance’s utility token experienced a similar bias resulting in a loss of 62% and 94 days of red numbers.
Although the crossing suggests a deeper period of losses, the relative distance between the price and the moving averages makes us consider that BNB is in an overbought state which could make it difficult for the cryptoactive to have another price discovery such as those experienced. Last week or not at least if before look for sellers at higher levels.
As for the Ichimoku cloud, four metrics are used to indicate if there is a trend; the current price in relation to the cloud, the color of the cloud (red for bearish, green for bullish), the crossing of Tenkan (blue line) and Kijun (red line), and the delay interval (green line). The best entries always occur when most signals change from bearish to bullish, or vice versa.
The Price vs Kijun indicator shows the status of an asset (overbought or oversold) in relation to the distance the price has with the Kijun. The lower or higher the price is in relation to Kijun, the asset will mark a more marked oversold or overbought. At this time, Price vs Kijun indicates values similar to those seen at the end of November 2018 when BNB was trading in the USDT 5 just before its bull run.
In this same sense, any upward movement would seek rest in the resistance areas between USDT 18.72 and USDT 23 where Tenkan and Kijun are located. The area surrounding the USDT 20 should be considered as an important point of confluence, since a group of indicators converge there, which are seen by a considerable number of merchants turning it into observation points and possible operational.
On the other hand, in recent weeks BNB has shown a significant loss of volume compared to the past months as the asset shrinks, this has led prices to make more vertical movements distancing themselves considerably from their trend line current, suggesting an unsustainability of current prices around USDT 15, therefore any possible rebound from this point would lead the cryptocurrency to test the USDT 20 resistance area. Similarly, the relative strength index (RSI) ) indicates that the range in the oscillator is adjusting as it makes higher highs and lower lows, a bullish signal would come with the break of the downline and a quote above point 46, which would indicate that the momentum of movements is dominated by buyers. A break in current support levels would lead to a price shift to USD 10 or USDT 11, where the nodes of larger volume are also located and one of the annual pivot points rests.
Bitcoin waiting for action
During the summer, Bitcoin showed itself to form a symmetrical triangle as the price showed signs of consolidation (low volatility and little commercial volume), achieving lower highs and higher lows. In a technical analysis of stock trends (1948), Edwards and Magee suggest that approximately 75% of these triangles lead to a continuation of the trend (in this case bullish), while the rest marks price reversals. A day after the launch of the Bakkt futures the price detonated in a wave of sales that led to a loss of almost 20% in the USD 8,000. Now almost a week later, the world’s leading cryptocurrency seems to have stabilized in a support area that includes USD 7600 and USD 8,000.
Based on the 50 and 200 period moving averages, Bitcoin bias is bearish as it is below the EMA 200, something that has not happened since the beginning of April. Throughout the bull run of 2016 and 2017, the price of Bitcoin was never quoted below this line, on the contrary, the asset used this dynamic support / resistance to create higher lows. Even if the price is quoting below the EMA 200, the crossing between moving averages has not been made, so a return above the 200 average is palpable in the coming days.
As mentioned on previous occasions, the annual pivot points serve as areas of attraction for the price, the USD 13,000 and USD 8,000 areas will serve as regions those key regions. A break below the current support level would precipitate prices to the point of USD 6,000 where a node of remarkable volume is located
The Bitcoin price structure shows a key support area between USD 7,500 and USD 8,000 where the price has marked some degree of polarization so far in 2019. If a good purchase price is found, the price is likely to rise in the short term. term at USD 8,700 where the EMA of 200 also rests. It is vitally important to consider the average of 200 days as a crucial area for a review of the current setback or a more pronounced long-term contraction.
At a time when the prices of an asset are unclear and in consolidation states, the higher temporalities provide a better structured reference scenario than the low temporalities. On the weekly chart using the Ichimoku cloud with duplicate configurations (20-60-120-30) for more precise signals the signals are neutral: the price is in the cloud, the cloud is bearish, the cross between the Tenkan and the Kijun is bullish and the delay interval is above the price, but under the cloud.
If you compare the current data with the fractals of 2016, it will be observed how the price has fulfilled one of the past movements (blue box) when returning to the Kijun at USD 8,500, now we are waiting for the price in the following weeks Start trading above this area as mentioned in the past uptrend (purple box). Otherwise it is quite likely that Bitcoin will take a little longer to return to a bullish state at the beginning of the year.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.