The cryptocurrency markets fell sharply on July 14 after bitcoin (BTC) endured another $1,400 sell-off, denying the bulls a chance to revisit 2019 highs.
At 09:00 UTC on July 14, BTC began to shed $1400 from its price tag, dropping below $11,000 and then $10,500 for the first time since July 2.
Prices had initially attempted to rally above $10,800 but were stopped short as a quick reversal to momentum brought prices reeling back below $10,000.
BTC’s price has since fallen victim to the continual bearish sell-off and is currently changing hands at $9,974 at time of writing.
The move down was also accompanied by a small surge in total trading volume of $2.8 billion over a 24 hours as traders looked to book profit and exit the markets in quick succession amid declining crypto prices across the board, according to CoinMarketCap data.
Major names such as ether (ETH), litecoin (LTC), XRP (XRP) and EOS (EOS) also began to fall in value at around the same time as BTC, losing between 15-20 percent in just under six hours.
Further, the total market capitalization of all cryptocurrencies combined endured a $20.1 billion loss over 24 hours, marking one of the largest single-day losses in market value since June 27, 2019.
The short term outlook remains volatile, so BTC could experience a bounce on today’s momentum, but that will need to be accompanied by strong levels in growing (bullish) volume in order to end the recent sell-off still being felt from July 10.
Bitpoint, a licensed cryptocurrency exchange based in Japan, has been hacked for $32 million in crypto assets.
According to a CoinDesk Japan report on Friday, Bitpoint halted all services including trading, deposit and withdrawal of all crypto assets on Friday morning after it noticed irregular withdrawal from its hot wallet on Thursday.
It is not yet clear at this stage which types of assets were lost, the exchange offered trading for five cryptocurrencies: bitcoin, bitcoin cash, ether, litecoin and XRP.
The exchange’s parent company Remixpoint Inc. said in an announcement that $23 million of the illegal outflow belonged to its customers.
The news marks the latest breach of a Japanese exchange. In September 2018, Zaif, also a licensed exchange under the Japanese Financial Services Agency, was hacked for $60 million worth of cryptocurrencies.
Earlier last year, Coincheck was also breached, resulting in more than $520 million worth of cryptocurrencies being stolen.
- Bitcoin’s bounce from the support of the 10-candle moving average (MA) on the three-day chart may have opened the doors for a retest of recent highs above $13,000. The MA has consistently reversed pullbacks since February.
- A failure to hold above that support level ($11,167 currently) would validate the bearish candlestick pattern seen on the daily chart and allow a drop to support at $10,769.
- A UTC close below $9,615 (July 2 low) would confirm a bearish reversal.
Bitcoin has bounced up from historically strong price support, raising the prospects of a renewed push toward recent highs above $13,000.
The cryptocurrency market leader had been on the defensive in the Asian trading hours today, looking set for a drop below $11,000 after a failure to capitalize on a falling wedge breakout seen yesterday.
The move below $11,000, however, remained elusive with the cryptocurrency finding takers around the three-day chart 10-candle moving average (MA) support – then located at $11,150 – and rose to a high of $11,797 soon before the press time.
The $600 bounce from the 10-candle MA could be a sign the pullback from the weekly high of $13,200 has ended.
The 10-candle MA has consistently acted as strong support, reversing corrections throughout the rally from February lows near $3,500 to June highs near $13,800, according to Bitstamp data.
So, if history is a guide, BTC could rise all the way back to the July 10 high of $13,200 in the next few days.
As of writing, BTC is changing hands at $11,673 on Bitstamp, representing a 1.3 percent gain on a 24-hour basis. The 10-candle MA on the three-day chart is now located at $11,167.
This year, BTC first found acceptance above the 10-candle MA on Feb. 9 and the technical line has acted as strong support ever since.
For instance, the cryptocurrency traded in a sideways manner along the average line for almost a month before witnessing a 21 percent rise to levels above $5,000 in early April.
The 10-candle MA also fueled strong price gains in early May and June (marked by arrows). What’s more, the sell-off from the June 26 high of $13,880 ran out of steam near the key average on July 2 and prices rose back to $13,200.
All-in-all, there is a strong reason to believe that the latest bounce from the 10-candle MA will be extended further toward recent highs.
BTC closed below $11,550 yesterday, confirming buyer exhaustion signaled by the previous day’s bearish outside day candle.
Even so, the cryptocurrency is better bid at press time, as mentioned above.
The focus would shift back to the bearish outside reversal if prices fall back below the 10-candle MA, currently at $11,167. In that case, the support at $10,769 (July 5 low) could come into play.
The outlook would turn bearish only if prices print a UTC close below $9,615 (July 2 low), invalidating the bullish higher lows pattern.
- Bitcoin suffered a significant drop in the last 24 hours, but the higher-lows pattern on the daily chart is still intact and the outlook remains bullish.
- A daily close below the July 2 low of $9,615 would invalidate the bullish higher-lows pattern and confirm a bearish reversal.
- The case for a drop to $9,615 would strengthen if BTC prints a UTC close below $11,550 today, validating Wednesday’s bearish outside day candle.
- A high-volume wedge breakout on the hourly chart, if confirmed, would imply an end of the pullback and yield a move back above $12,000.
Bitcoin (BTC) has dropped sharply in the last 24 hours, however, the outlook remains bullish with prices holding well above key support near $9,600.
The top cryptocurrency by market value ran into a flood of offers near $13,200 yesterday and fell to a low of $11,164 on Bitstamp earlier today.
Media outlets have associated the sharp pullback with the US Federal Reserve Chairman Jerome Powell’s comments that Facebook’s cryptocurrency Libra “cannot go forward” until serious concerns regarding privacy, money laundering, consumer protection, financial stability are addressed.
While there is no concrete evidence to link bitcoin’s drop with Powell’s comments, the price action does paint a picture that indicates the sell-off was triggered by Powell’s remarks.
As noted by CNBC Journalist Ryan Browne, BTC began falling rapidly from $12,900 immediately after Powell started talking on Libra at 14:30 UTC yesterday.
That said, the bulls were already looking tired, having faced multiple rejections above $13,100 ahead of Powell’s testimony, as noted by CoinDesk Markets, meaning the pullback was expected. Powell’s remarks may have ended up deepening the price slide.
Looking forward, the outlook will remain bullish as long as the price is held above the higher low of $9,615 created on July 2. Renowned crypto market analyst Tone Vays mentioned $10,000 as the level to defend for the bulls.
As of writing, BTC is changing hands at $11,500 on Bitstamp, representing a 10 percent drop on a 24-hour basis.
BTC created a bearish outside day candle on Wednesday, which occurs when the day begins with buyers in control only to end on a bearish note, engulfing the high and low of the preceding day.
A bearish outside day is widely considered an early warning of a bullish-to-bearish trend change. The reversal, however, is confirmed only if prices close below the candle’s low on the following day.
The focus, therefore, is on today’s UTC close. The bearish outside day pattern would gain credence if prices print a close below $11,550.
That would shift risk in favor of a drop to the bullish higher low of $9,615 (July 2 low). The outlook would turn bearish only if and when the price finds acceptance below that level.
BTC, however, could close well above $11,550 today as the pullback seen in the last 24 hours has taken the shape of a bullish reversal pattern, as seen in the chart below.
BTC looks to have created a falling wedge pattern, which comprises of contracting trendlines connecting lower highs and lower lows.
The contraction of the range indicates sellers are losing steam. As a result, a wedge breakout is considered a bullish reversal pattern.
A high-volume break above the upper edge of the wedge, currently at $11,500 would confirm a breakout and allow a rally back to immediate resistance at $12,200 (horizontal line). A violation there would expose Wednesday’s high of $13,200.
- Bitcoin’s violation of recent bearish lower highs with a move above $12,061 has opened the doors for a retest of $13,880.
- Prices reinforced the bull breakout with a successful defense of the former resistance-turned-support of $12,061 soon before press time.
- Bitcoin’s dominance rate has spiked to 27-month highs, backing the uptrend in prices.
- A high-volume UTC close below $12,000 would abort the bullish view.
Bitcoin’s break above a key price hurdle looks to have set the tone for a retest of recent highs above $13,800.
The top cryptocurrency bu market cap printed a UTC close above $12,061 on Monday, invalidating a bearish lower highs pattern created on July 4, according to Bitstamp data.
Further, with Monday’s close, BTC cemented the bullish view put forward by the strong dip demand below $10,000 observed a week ago.
More importantly, the latest breakout looks sustainable, as bitcoin’s dominance rate (percentage of the market in relation to other cryptocurrencies) has ticked up to 64 percent, the highest level since April 2017, according to data source CoinMarketCap.
A rise in price accompanied by a surge in the dominance rate indicates that investors are pouring money into the bitcoin market for a long haul and not merely to fund purchases of relatively cheap alternative cryptocurrencies.
Put simply, rise in dominance adds credence to the upward trend in prices. As a result, doors look open for a rise toward the recent high of $13,880.
At press time, BTC is changing hands at $12,600 on Bitstamp, representing 7.55 percent gains on the day. Prices hit a high of $12,883 earlier on Tuesday.
Bitcoin violated the bearish lower-highs pattern with a close above $12,061 yesterday on the back of an uptick in buy volumes (green bar).
The 14-day relative strength index is currently holding well above 50, indicating bullish conditions.
Further, the Chaikin money flow indicator, which takes into account both prices and trading volume, continues to print positive numbers – a sign of sustained buying pressure.
BTC could rise above $13,000 in the next 24 hours and extend the gains toward $13,880 (June 26 high) in the short-run.
BTC dived out of the ascending channel soon before press time, establishing a bearish lower high at $12,700.
Prices, however, soon bounced up from the former resistance-turned-support of $12,061, keeping the bulls in the game.
A break above $12,700 would further strengthen the bull grip and allow a rally to levels above $13,000, as suggested by the daily chart.
The bullish view, however, would be aborted if prices close today below the former resistance-turned-support of $12,061.