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Bitcoin and Altcoins Still Stuck in a Corrective Phase
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Bitcoin and Altcoins Still Stuck in a Corrective Phase

by Raphael PutongSeptember 12, 2019

Bitcoin is moving as we said yesterday and today it has improved a bit, moving at around $10,150 (+1%). Meanwhile, the top altcoins retrace a bit, with Litecoin (-2.6%), Cardano (-2.37%), Binance Coin (-3.9%), and Bitcoin SV (-4.3%) being the most bearish. The market cap of the crypto market improved and is now at $260.2 Billion, and Bitcoin dominance grew to 70% again.

Today’s news tells that France’s Economy and Finance minister Bruno Le Maire said at the opening of the OECD conference on cryptocurrencies that France would block Libra’s development in Europe because it threatens the monetary sovereignty of governments. Also, Santander announced today that it had issued a $20 million bond into an Ethereum blockchain smart contract, where it will stay until its maturity, one year from now. In another piece of news, we knew that Bitcoin.com is developing a futures contract on the Bitcoin Cash (BCH) intending to put the altcoin in the second or third place of market capitalization.

Bitcoin price held yesterday near $9,900, as buyers kicked in and pushed the price up to near $10,200, and later retracted a bit. Volume keeps coming down, so this movement is suspicious. The price is moving near the mid-Bollinger line, and the MACD made a bullish transition in the 4H chart. On the other hand, both 50-MA and 200-MA are still above the price. That makes us believe that Bitcoin still needs some period of consolidation before its next movement, which we suspect it is going to be bullish. The price moving to the upper side of the Bollinger Band on increasing volume would be a good indication.

Ripple has hit and bounced off of its 0.25 support making a Harami figure, although it will take a time to complete. A close above 0.256 will be the trigger to an upward move if we think it will mimic the recent past. On the downside, MACD is still bearish, and the price is below the -1 Bollinger line, thus, making the upward play dangerous, since the current underlying trend is also bearish.

Ethereum is still correcting, like most of the altcoins today. The $176 key level held yesterday, and te bounce created a kind of morning star formation. The price is retracing right now about 50% of that movement and still is moving near the -1 Bollinger line. We would be bullish if the price closes above $180, but not before.

Litecoin is behaving a bit more bearish than Ethereum, but overall its technical picture is quite similar to the former. Maybe the recent news about it losing more than one-third of the mining hash power has “mined” into the investors’ sentiment. The $68.3 level is still holding, but the outlook told by price action, the Bollinger bands and MACD makes us think there is room for more drops.

Dogecoin’s outlook on the daily chart seems gloomy. Since its July top, the price has been drifting down. Yesterday, the price broke a ley support level at 0.00242, and the price appears poised for a visit to the 0.00207 level. It seems investors are dropping all hope for this altcoin.

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Bitcoin has not taken advantage of the bullish window that appeared last week and moves downward – dragging the entire sector with it – although with different impacts.

Ripple’s XRP, the third-largest digital asset with the current market capitalization of $10.8 billion, has recovered from the intraday low of $0.2211 and settled at $0.2530 by the time of writing. Despite the recovery, XRP/USD stays down 1.4% on a day-on-day basis.

Litecoin has resumed the decline and reached an intraday low at $68.41. The fifth-largest digital asset with the current market value of $4.3 has been losing ground both on a day-on-day basis and since the beginning of the day. At the time of writing, LTC/USD is changing hands at $68.92, down 2.5% in recent 24 hours.

NEO has been sidelined below $9.00 handle. The 20th largest digital asset with the current market value of $628 million has gained nearly 2% since the beginning of the day and stayed unchanged on a day-on-day basis.  NEO is most actively traded at Bitfinex against USDT.

Bitcoin bulls are back from summer holidays. The first digital currency regained some ground lost during the previous week and came close to critical resistance $11,000.

Via fxstreet.com

About The Author
Raphael Putong