Bitcoin [BTC] has been strongly holding above the $10,000 levels. The traders are at crossroads on whether the breakout would be bullish or bearish. Anthony Grisanti, founder of GRZ energy and CME futures trader rung bearish alarms, he said in an interview,
I actually think it heads lower from here… It couldn’t hold the 50-Day or the 50-Day Moving Avergae. Now, we’re on the verge of a death cross where the 21-Day is going to cross underneath the 50-Day moving average.
$10,000 has become an important psychological support level and the low volume could lead to a massive move on either side.
The support levels according to his analysis were $9500, $9200, with $8500 being the “ultimate” support. Nevertheless, while the technicals for a futures trader are bearish, the fundamentals on Bitcoin [BTC] is still strong. The impending global economic crisis along with the unrest in Hong Kong, Argentina, and around the world continue acting as a positive impetus to Bitcoin.
Ethereum and Altcoin Bearish, Still?
On the altcoin front, even the fundamentals were weakened recently as their economic value and utility have been challenged. Ethereum [ETH] and Litecoin [LTC] are still trading about 100% higher from their lows in December 2018. However, the technicals are beginning to sound bigger alarms for altcoins at the moment.
Ameba, a crypto-trader tweeted called the near approaching death cross on the USD scale. He tweeted,
ETHUSD about to give us an EMA50 and 200 death cross on the daily unless some serious pump happens between today and tomorrow. This would line up quite nicely with the 4hr H&S being printed.
Moreover, Ameba also cautioned about the head and shoulders pattern that is forming on the 4-Hour chart. As reported yesterday on Coingape, Peter Brandt had also suggested that the pattern could be playing. However, confirmation on the bearish patterns is still pending.
Bitcoin [BTC] and altcoins have decoupled their price movements lately. This is starting to reflect on the Technicals as well. Sawcruhteez, crypto-trader who reciprocated with the ‘death cross’ analysis noted,
…Longing $ and hedging with $ shorts makes all the sense in the world over the upcoming weeks / months.
However, developments around altcoins and positive regulatory decisions could soon change the outlook. Moreover, crypto whales have been known to feed on popular market sentiments. Hence, the swing traders will keep a close watch to the future movements.
Bull or Bear: What is your position on Bitcoin and altcoins in the short term? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com