Despite being one of the most bullish cryptocurrencies from a macro-perspective, Chainlink has seen an intense decline today that has led it to plummet by over 6%.
Today’s downturn marks an extension of that which was first incurred a couple of days ago when LINK tapped highs of nearly .00. The strong resistance at this level did prove to be insurmountable and could help fuel further downside in the days ahead.
This comes as one analyst even sets an incredibly low target for the cryptocurrency, suggesting that it could decline as far as .00 due to a massive rising wedge pattern that has led it to a high-time-frame resistance region.
Chainlink Shows Signs of Weakness as Analysts Watch Reaction to Key Support
At the time of writing, Chainlink is trading down over 6% at its current price of .55, marking a notable decline from daily highs of .80 that were set yesterday.
Over a weekly period, the cryptocurrency is showing even greater signs of bearishness, as it has declined from highs of nearly .00 that were set just two days ago.
The drop from these highs has led it to severely underperform Bitcoin, as the benchmark crypto is currently trading just a hair below its weekly highs of ,800.
One popular crypto analyst on Twitter explained that it could soon fall significantly further as it begins pushing below its near-term support.
This downtrend could lead it as low as .90 against its USD trading pair, and as low as 40k sats against its BTC trading pair – a regression from its current BTC price of 46k sats.
“LINK: On BTC pair -> broke south, which is not bad after such a move. Levels to hold; 46K Satoshi, holding & test 49K is likely. Losing -> 43 / 40K satoshis are next. On USDT pair -> need to hold .45-3.50, otherwise .90 is likely,” the analyst noted.
Image Courtesy of Crypto Michael
Could LINK be Poised to Crater to .00? This Analyst Thinks So
Another popular analyst recently offered a chart showing a highly bearish path forward for the cryptocurrency, setting a mid-term target at .00.
Image Courtesy of il Capo Of Crypto
As seen on the above chart, it does appear that Chainlink is currently trading within a rising wedge that leads it into a high-time-frame resistance zone. A rejection here could be dire, potentially sparking a mid-term downtrend.
This trend could be confirmed if the crypto fails to surmount the resistance within the lower-.00 region.
Featured image from Unplash.
NewsBTC
This Major Crypto is Poised for New Lows in 2020 as Macro Structure Degrades
2020 has been a particularly rough year for Litecoin, with the crypto closely tracking Bitcoin’s price action and trading right around where it started the year at.
Although LTC has been able to avoid declining over a year-to-date period, it has severely underperformed Bitcoin in the time following its capitulatory decline from its mid-February highs.
Over a macro time frame one trader is now noting that he believes Litecoin is particularly weak and could be well positioned to set fresh lows in 2020.
Litecoin Sees Intense Macro Weakness as Analyst Foresees “More Tears” in the Future
At the time of writing, Litecoin is trading down just under 2% at its current price of .19, which marks a slight decline from daily highs of .30 that were set yesterday.
LTC is still trading up from weekly lows of and has formed a tight correlation to Bitcoin that has led the crypto to see short-term price action similar to that seen by most of its peers.
The cryptocurrency’s macro trend appears to greatly favor bears, however, as analysts are noting that LTC’s reaction to its major demand level appears to be a grim sign for what’s to come next.
One pseudonymous crypto trader spoke about this in a recent tweet, explaining that that the weakness of Litecoin’s recent bounces indicates that there are “more tears to come” in the coming months.
“LTC / USD 1M TF – Look at Price action reaction to this demand level, ‘V reversal’ I personally don’t think so, each bounce is getting weaker and weaker, more tears to come over the coming months.”
Image Courtesy of Escobar
Low-Time-Frame Analysis Signals the Crypto May Set New Lows in 2020
This bearishness isn’t unique to just Litecoin’s macro time frame, as the seventh largest cryptocurrency by market capitalization is also showing immense signs of weakness in the short-term as well.
The same crypto trader also spoke about this in a later post, explaining that although it could bounce slightly higher in the near-term, it is likely that Litecoin sets fresh lows in the coming months.
“LTC / USD H12 TF – Looking at the LTF, there is money to be made as a trader in both directions. The idea of the 1M analysis is to show you my HTF views to Litecoin, new lows look inevitable in 2020,” he said while pointing to the below chart.
Image Courtesy of Escobar
Featured image from Unsplash.
NewsBTC
Bitcoin Appears to Enter “New Era” as Multi-Year Market Structure Grows Bearish
Bitcoin (BTC) has been able to post a notable rebound today that has allowed it to recoup some of its recent losses, with bulls stepping up and propelling the cryptocurrency back into the ,000 region following its recent dip to lows of ,700.
This has led the aggregated cryptocurrency market to post some decent gains, with many major altcoins climbing 5% or more as analysts eye further short-term upside.
In spite of some near-term bullishness, one top trader is noting that Bitcoin appears to have entered a “new era” – as its price action from a macro perspective is showing signs of unprecedented bearishness that hasn’t been seen before in its history.
Bitcoin Sees Short Term Upside as Bulls Recapture Key Technical Level
At the time of writing, Bitcoin is trading up roughly 4% at its current price of ,100, which marks a notable climb from daily lows of ,600 that were set at the bottom of yesterday’s intense selloff.
It appears that the strong support that the cryptocurrency has established at ,700 is enough to stop it from seeing further downside, as its recent rally past ,000 came about shortly after bulls posted a strong defense of this key level.
One other important factor to consider is that Bitcoin has been able to recapture its 4-hour EMA, which is a bullish sign that may allow it to climb higher in the hours ahead.
“Bitcoin 4 hour EMA re capture,” popular analyst Big Cheds explained while pointing to the chart seen below.
$BTC #Bitcoin 4 hour EMA re capture pic.twitter.com/EYTGCv11L1
— Big Cheds (@BigCheds) March 10, 2020
BTC May Be Entering a New Era of Immense Bearishness
One interesting trend to keep in mind is that Bitcoin’s price action seen in the time following its 2017 bull rally has been some of the most bearish seen in the cryptocurrency’s relatively brief history.
MoonOverlord – a well-respected analyst and trader on Twitter – pointed out the striking change in BTC’s macro market structure in a recent tweet, pointing to a chart elucidating the differences between its recent price action and that seen following parabolic cycles in years past.
“Feels like were in a new BTC era, price action above -k being stifled and sold heavy, all wicks to the upside. Historically dips, and a majority of wicks were to the downside, feels like that has flipped, especially in this newest structure,” he explained.
Image Courtesy of MoonOverlord
The size of Bitcoin’s market is likely one factor that has changed its macro price action, but it is important to keep in mind that a continuance of this bearish price action could lead it to see a notable selloff in the months ahead.
Featured image from Shutterstock.
NewsBTC
Ethereum Poised For a Fresh Rally Based On This Bullish Market Structure
Ethereum is showing positive signs above 5 against the US Dollar. ETH price is likely forming a bullish breakout pattern and it could soon rally above 5-8.
Ethereum is forming a nice bullish formation above the 0 support area against the US Dollar.
The price is likely to surge above 0 and 5 to start a fresh rally in the near term.
There is a contracting triangle forming with resistance near 0 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also likely to start a strong rally after the recent rate cut from the fed.
Ethereum Price Could Rally Soon
After testing the 5 resistance, Ethereum started a downside correction against the US Dollar. ETH price corrected below the 2 and 0 support levels.
Besides, there was a break below the 50% Fib retracement level of the recent rise from the 2 low to 5 high. It even spiked below the 5 support and tested the 0 support level, which acted as a strong buy zone.
It seems like the bulls are able to defend the 61.8% Fib retracement level of the recent rise from the 2 low to 5 high. Ethereum is now climbing higher and trading above the 5 level and the 100 hourly simple moving average.
More importantly, there is a contracting triangle forming with resistance near 0 on the hourly chart of ETH/USD. A convincing break above the 0 resistance level could open the doors for a fresh rally.
Ethereum Price
The main hurdles are near the 5 level, above which the bulls are likely to aim a test of the 0 and 5 resistance levels in the coming sessions. Any further gains could lead the price towards the 5 resistance zone.
5 As Key Resistance
If Ethereum fails to surpass the 0 and 5 resistance levels, there is a risk of another bearish reaction. An initial support is near the 5 level, followed by the triangle support.
If the bulls fail to protect the triangle support, it will invalidate the bullish bias and the price might dive below the 0 support level. The next key support is near the 5 level. Any further losses may perhaps lead the price towards the 2 swing low in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is back above the 50 level, with positive signs.
Major Support Level – 5
Major Resistance Level – 5
NewsBTC
Crypto Market Crash: This Technical Structure Puts End to Uptrend
Although the crypto market has been surging since the start of 2020, the Bitcoin and altcoins may be experiencing the early stages of the year’s first major correction.
The technical structure of the recent, short-term uptrend has been broken, suggesting that further downside is due in the days ahead. However, the uptrend on higher timeframes remains strong, so any correction is likely limited and will rebound to new highs following a local low being set.
Crypto Market Uptrend Technical Structure is Tarnished, But Daily Close Will Decide Fate
The crypto asset class has been among the best-performing assets of the new year, across any financial market, behind only select standouts like Tesla.
Bitcoin is up over 40% year-to-date, and altcoins across the board have been skyrocketing. The number two cryptocurrency by market cap Ethereum has risen over 100%, doubling in value in just a few weeks.
Meanwhile, lower down the list, altcoins like Link or Tezos have been on fire, quadrupling in value in just a few short weeks into the new year.
Related Reading | Bitcoin Dominance Could Cause Catastrophic Ending to Current Altcoin Season
But the explosive uptrend may be coming to an end, at least in the short term, according to a break in market structure.
Uptrends by definition are a series of higher lows and higher highs put in consecutively following an ultimate low being set. The uptrend is over once a high is put in, and a lower low is later set to confirm the conclusion of the bullish momentum.
On daily timeframes, the total cryptocurrency market is just hours away from setting its first lower low since the uptrend began.
Technically, two wicks have already touched lower lows, but no daily price candles have closed below the low set on February 10.
When looking at an uptrend channel that has formed throughout the year, the total crypto market cap can still be seen trading within the channel. A wick extends out of the bottom of the channel, but again, no candle has closed to confirm the lower low and finish to the uptrend.
The lack of a candle close could indicate that the total crypto market could surge higher from here, but after over 70% gains across the board, more than 10% correction is likely warranted and due in the days ahead.
Danger of Deep Correction Won’t Prevent Bull Market, According to Higher Timeframe Price Action
Even if a deep correction arrives, the uptrend is still safe and intact on higher timeframes such as the weekly and monthly. It is only shorter timeframes that are in jeopardy.
A new lower low on weekly timeframes won’t be set until the market cap falls under 9 billion. The total crypto market value current rests at 6 billion, up from a low of 5 billion set back in late December 2019.
On monthly timeframes, a new lower low won’t be set unless the market falls back below 5 billion. Such an event would suggest the long-term trend was turning back to bearish, and an extended downtrend would be almost guaranteed.
Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun
Such an event is extremely unlikely after two full years of a bear market and with so many signals confirming that a new bull market is forming for Bitcoin and altcoins in the months ahead.
NewsBTC
Bitcoin Just Rejected $8,900 in a Short-Term Top Structure: Traders Fear Bear Trend Isn’t Over
The bitcoin price rose to as high as ,916 across major cryptocurrency exchanges like BitMEX and Binance on January 15. Since then, BTC fell by three percent in a typical short-term top formation.
Lower time frames indicate a double top structure, which normally suggests that the asset tried to break above a key resistance level twice in a short time frame and failed.
,900 has acted as a heavy resistance level since late October. BTC has breached that level for the first time since mid-November, 2019.
What’s next for bitcoin in the short-term?
On December 21, 2019, the bitcoin price dropped to ,410 on both spot and large-scale margin trading platforms. It marked a near-term bottom, printed a classic inverse head and shoulders pattern, and surged by 39 percent within a month.
After a near 40 percent rally, a pullback is necessary. Following an abrupt overnight rally, it is healthy for an asset to correct, as it strengthens the macro trend of the asset.
Although a pullback has been anticipated after such a large upsurge in merely a weeks time, some traders are considering the possibility of the bear trend not being over yet.
The bitcoin price dropped by more than three percent after failing to break out of ,900 (Source: TradingView)
One prominent cryptocurrency trader wrote:
“If you’re struggling to mark out basic market structure, then switch to a line chart and have a look at the weekly. See a lot of charts flying around trying to illustrate that BTC has broken its bearish market structure. It hasn’t.”
In a way, the recent breakout of bitcoin above ,900 echoes the trend the market saw in in the last week of October when the bitcoin price rose to ,600.
In 2 days, the bitcoin price increased by 43 percent from ,400 to ,600, and proceeded to fall by 40 percent in the following two months.
Fears of a deeper correction in the short-term are arising because of the magnitude and the speed of the rally.
The move to ,900 was somewhat expected throughout the past two months, but its large overnight rally and the explosive recovery of the altcoin market rattled many traders.
Are altcoins leaving BTC vulnerable?
As billionaire cryptocurrency investor Mike Novogratz said, it was difficult for even investors that have been involved in the market for a long time to see altcoins rally in the manner it did in the last 72 hours.
I’m not sure I understand the altcoin rally. Happy for those making money on it. But not sure what changed. Maybe new year, new money, new enthusiasm. Dinner in NYC for best explanation.
— Michael Novogratz (@novogratz) January 15, 2020
Cryptocurrencies like Bitcoin Cash, Ethereum, Bitcoin SV, EOS and Litecoin increased by anywhere in between 20 to 140 percent within a 12-hour span.
Subsequent to such a large short-term upsurge, a correction often ensues. The sheer magnitude of the altcoin market rally could possibly leave BTC vulnerable to a larger correction than anticipated.
As the valuation of the cryptocurrency market rose by nearly billion in about five days, large sell-orders on major exchanges started to emerge.
Someone just market sold 420 Bitcoin on Bitfinex.
— Jacob Canfield (@JacobCanfield) January 16, 2020
Whether the rejection of BTC at ,900 is merely a healthy pullback only to retest ,000 and levels above it once again or is a continuation of its bearish trend remains to be seen.
There is significant interest in the margin trading market with open interest almost doubling in a week, and it means a big movement is imminent. The post appeared first on NewsBTC.
NewsBTC
$7,700 to $7,200: Here’s What Bitcoin’s Rejection Says About Its Market Structure
Bitcoin has been facing some turbulent price action over the past several days and weeks, surging to highs of ,700 this past weekend before hitting a region of resistance that has sparked a firm short-term downtrend that has led BTC down to its support in the lower-,000 region.
This recent downtrend has shown few signs of letting up as bull’s recently found strength appears to be faltering, which has led multiple analysts to believe that further losses are imminent for the crypto.
Bitcoin Falls to ,300 as Bulls Weaken
At the time of writing, Bitcoin is trading down marginally at its current price of ,300, which marks a slight climb from its daily lows of ,200 that were set earlier today during a sharp sell-off that was ultimately absorbed by buyers.
Bitcoin’s current price levels marked a previous region of support for the cryptocurrency prior to its capitulatory drop last week that sent it to lows of ,400.
It does appear that this support region is holding strong for now, but the recent selling pressure has been quite strong and may extend further in the near-term, possibly leading BTC down to its next key support level at ,000.
TradeXO, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes BTC is bearish as long as it is under ,400, which means that a revisit of its recent lows could be imminent.
“$BTC: Will be looking to add to shorts from 7610’s at the blue level – underside of 7k. Will scale out if price reclaims 74s,” he explained while pointing to the chart seen below.
Will be looking to add to shorts from 7610's at the blue level – underside of 7k
Will scale out if price reclaims 74s pic.twitter.com/mNlzYhvY4u
— TraderXO (@TraderX0X0) December 24, 2019
Analyst: BTC’s Overall Trend Remains Firmly Bearish
The latest uptrend that Bitcoin experienced following its movement from ,400 to ,700 led many analysts and investors to grow bullish on the cryptocurrency, but it is important to note that BTC’s overall market structure still remains firmly bearish.
Cantering Clark, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying that the latest rally didn’t lead to a structural break of the downtrend, which he anticipates to extend further.
“Why did I not hop on the bull train and stay looking for a short? – That was a micro-structural break. Nothing changes until something major changes. – Higher Delta / Aggressive Buying and a lower H-L advance is always one of the first signs I pay attention to,” he said while pointing to the indicators seen on the chart below.
Why did I not hop on the bull train and stay looking for a short?
– That was a micro-structural break. Nothing changes until something major changes.
– Higher Delta / Aggressive Buying and a lower H-L advance is always one of the first signs I pay attention to. $BTC pic.twitter.com/EL4iGsbExv
— Cantering Clark (@CanteringClark) December 24, 2019
If BTC breaks below the support it has established between ,000 and ,200, it is highly probable that it will once again drop until it revisits its recent lows of ,400.
Featured image from Shutterstock.
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Could PlusToken Scam Be Responsible for Broken Crypto Market Structure?
Ever since Bitcoin’s bottom at ,100, the crypto market has been convinced that the first-ever crypto asset was building a foundation for its next bull run.
But a powerful parabolic rally this year was unable to set a new all-time high, putting a new bull run in jeopardy. Could the impact of a massive Ponzi scheme earlier this year have affected Bitcoin’s market cycle, changing the trajectory of the asset’s price for the short-term?
PlusToken Ponzi Scheme May Be Responsible For Broken Crypto Market Cycle
Markets are cyclical, and history often repeats itself. Oftentimes technical analysis in crypto or any market for that matter focuses on the past in order to attempt to predict future movements. The practice is usually fruitful, but occasionally an event comes along that alters the cycle in some way, throwing off even the best analysis.
Related Reading | Crypto Market Fear Index Suggests Bitcoin Price Has Further To Fall
According to one crypto analyst, a massive Ponzi scheme related to PlusToken out of China may have caused an “abnormal effect” on the crypto market, causing it to rally much more strongly than it should have before a full recovery was underway, and additional sell pressure that’s causing miners to capitulate ahead of schedule.
I’ve been seeing a lot of Twitter FUD opining on miner capitulation in the last few days.
This got me thinking… could the selling by the PlusToken scammers have had an abnormal effect on this market cycle? pic.twitter.com/VZGjyQAxaF
— ∴ Ergo ∴ (@ErgoBTC) November 21, 2019
The resulting massive rally caused FOMO that has since burned out, and a post-rally selloff is turning into yet another extended downtrend.
PlusToken was a Ponzi scheme that resulted in scammers making off with an estimated over 200,000 BTC. Investors sent the scammers Bitcoin in exchange for the scam token, and the buying up of a large percentage of the scarce Bitcoin supply may have helped cause the asset’s price to go parabolic in early 2019.
The scammers have since mixed a total of 129,000 BTC according to the analyst, sold off from early August through today, accounting for an average of 1,300 BTC sold per day.
Scammer Selloff Could Be Causing Bitcoin Miners To Capitulate Early
Data reviewed by the analyst suggests that the 200,000 BTC estimate was somewhat accurate, with 187,000 BTC in total being scammed in the PlusToken scheme. With 129,000 BTC sold, it leaves a total of 58,000 BTC unmixed that are still being sold off at a rate of roughly 1,300 BTC per day.
This suggests that the sell-off duration could last between another month or two. It also opens up the door to additional theories on how this may influence current market behavior.
NEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event. pic.twitter.com/20748Zv8aQ
— Willy Woo (@woonomic) November 18, 2019
Bitcoin miners are said to be a capitulating, but as crypto expert Willy Woo points out, this is the first time in the asset’s history where miner capitulation is occurring before Bitcoin’s halving. In the past, according to Woo, each halving has been front-run by bullish price action, with miner capitulation only happening as the block reward is cut in half.
Related Reading | Uncommon Bitcoin Metric Suggests Massive Profit Taking Is Underway
Clearly, something has caused this recurring cycle to deviate from historical norms, and the 200,000 BTC out of the total 21 million BTC supply to ever exist suddenly being bought, then dumped into the market, could be at fault.
The post Could PlusToken Scam Be Responsible for Broken Crypto Market Structure? appeared first on NewsBTC.
Bitcoin Rally Stalls Despite Bullish Market Structure
Bitcoin (BTC) incurred a sudden influx of buying pressure yesterday that sent its price surging past its previous resistance levels and allowed it to gain a more solid footing within the ,000 region. This movement proved to be highly bullish for the aggregated crypto markets, as multiple major altcoins posted notable gains.
Analysts are now noting that BTC currently has a bullish market structure but are also noting that it may first need to dip back towards ,300 before it is able to gain enough upwards momentum to propel it towards ,000.
Bitcoin Rally Stalls; Will It Extend Further?
At the time of writing, Bitcoin is trading up over 3% at its current price of ,485, which marks a notable climb from its daily lows of ,200.
It is important to note that the upper-,300 level was previously Bitcoin’s near-term resistance, and its break above this level opened the gates for significantly further gains. Despite this, BTC’s bulls have not yet been able to step up and push the crypto’s price higher, which is leading some investors to question the long-term significance of this rally.
Popular cryptocurrency analyst HornHairs, however, explained in a recent tweet that Bitcoin’s 2-day candle chart shows a bullish market structure break that could mean it will test its near-term resistance level in the upper-,000 region, which will be a price that is critical for bears who want to prolong BTC’s recent downtrend to defend.
“$BTC #Bitcoin: 2D chart just landed a bullish market structure break. Previous floor + monthly pivot looks ready to be tested… I’ll be taking partial profits there,” he explained.
2D chart just landed a bullish market structure break. Previous floor + monthly pivot looks ready to be tested… I'll be taking partial profits there. pic.twitter.com/sYZ1Rj46If
— HornHairs
(@CryptoHornHairs) October 10, 2019
Analyst: BTC May Retest ,300 Before Uptrend Continues
Despite the bullish market structure that HornHairs referenced in the aforementioned tweet, it is important to note that he also believes that Bitcoin may dip towards ,300 before it begins climbing higher in the near-term.
“$BTC #Bitcoin: In the meantime, if we do dip from here, ,300s are a confluent level of support where i’d be looking for additional long exposure,” he said.
In the meantime, if we do dip from here, ,300s are a confluent level of support where i'd be looking for additional long exposure. pic.twitter.com/qsFWOQpvaL
— HornHairs
(@CryptoHornHairs) October 10, 2019
It does appear that Bitcoin is currently trading at a key price region, as which direction it moves in the near-term could provide significant insight into how it will trend for the coming weeks and months.
Featured image from Shutterstock.
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