Bitcoin and cryptocurrencies created a colossal wave last week as the US President finally decided to speak about them. While he spoke against it, the price jumped the following by nearly 7% as Bitcoin supporters seemed to take it positively.
The price of Bitcoin at 4: 00 Hours UTC on 15th July 2019 is $10,280. It is trading 9.8% lower on a daily scale. The low recorded during the bearish action in the past 24 hours is around $9850.
Furthermore, Ethereum suffered an even bigger blow as it plummeted about 18% to lest $220 levels. Bitcoin Cash and Litecoin as also dropped by 17% and 11% respectively on a daily scale.
The bulls seem exhausted at the moment as Bitcoin broke below its parabolic advance. This was earlier also emphasized by Peter Brandt, who sent a very subtle tweet about a “rendering BTC” pointing to a graph. We believe that it signifies a surrender from the bull run.
Sawcuhteez, a crypto-trader, and analyst suggested that from the weekly analysis that the medium-term outlook was bearish. According to candlestick analysis on a weekly scale suggested a continued bear move looking at the prior two candles.
This is definitely pointing towards continuation to the downside over the next few weeks as far as I am concerned. We did have this shooting star followed by a bit of a hanging man… Not a very bullish looking candle between a hanging man and a spinning top. Both are reversal candles.
On the long term analysis, Sawcrhteez referred to the Ichimoku cloud, which is still bullish in the long term. However, in the medium term, a break to $7500 is possible in the next few weeks. Tyler Jenks, another crypto-trader and analyst, reiterated his bearish stand.
Just the fact that both the two numbers $7500 and $8500 were the old highs as we came down in the bear market in 2018. And that’s the only reason I had picked them up and technical indicators are beginning to zero-in in the same area.
The other worrying signal at the moment for Bitcoin bulls is the fact that NVT analysis pointed out by Willy Woo is bearish. Essentially, it signifies that the on-chain volume compared to the total Mcap at the moment does not validate a bull run at the moment.
Furthermore, the institutional inclusion of Bitcoin and blockchain has grown tremendously in 2019. However, the ambiguous regulations around it have still kept things on hold, and as the governments continue to take a negative view of it, the rate development around crypto is hindered — recent developments in the US point at a complete closure of the Libra project.
Do you think Bitcoin will break bearish or will pullback will further strengthen the bull run? Please share your analysis with us.
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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