In the last few days, the market has surged in favor of altcoins while BTC has been more or less stagnant. This is unlikely to be a long term trend, as BTC is expected to pick up the pace soon enough. Currently, the Bitcoin price seems to be relatively suppressed given the overall market sentiment.
Retail investors seem to be overestimating the impact Bakkt could have on the Bitcoin market. Of course, it’s going to be a major event, but it is something that will give the market more depth in price discovery, rather than being a catalyst for parabolic price action.
NVT Ratio of Bitcoin is still relatively high, so it is unlikely that this correction is over. Most on-chain metrics, such as Coin Days Destroyed, also point to this same thesis.
The launch of the VanEck SolidX Investment Trust for institutional investors did not impact BTC at all. In fact, the trust has managed to raise a mere $41,400 in the last 10 days. On September 17, 2019, they announced they are withdrawing their ETF proposal, which means they may not be interested in having a retail-focused Bitcoin investment product anymore.
The Bitcoin price is currently suppressed, and volume is abysmal too. The continued loss of volume is a sign that the correction is coming to an end, but the lack of buying strength also means that the correction is not over.
Altcoins have been surging, and this has had a negative impact on BTC denominated pairs. Traders/investors should consider taking a look at the bitcoin dominance chart to see the impact the last few days have had.
BTC is currently above its trendline, and this is the trendline that has been set in since the $13,900 top a few months back. A break and restest of this trendline would indicate that the market is finally breaking out of its corrective phase, but it must show a clean break on the weekly or monthly timeframe to confirm this.
Short term targets for BTC are in the ranges of $10750-10900, and $11000-11200. Over the long term, we can expect to see a bottom near $8300-8500, and it could even overshoot to the mid $7000’s if selling pressure exceeds current expectations.
Long term outlook for BTC is incredibly bullish as we are just on the first wave of this bull market. The next few moves up will be significantly more parabolic and filled with the exuberance the Bitcoin market is known for.
Considering the fact that altcoins took a much deeper hit during this correction, it is quite safe to assume that most of the strong alts have actually bottomed out. Looking at the difference in the dip between BTC and ETH should make this fairly obvious.
ETH needed to break $203 to overcome its last lower high. It ended up shattering $203 and currently sits at a resistance zone of $216-220.
Although it is easy to get swayed by consequent green candles, ETH will likely hit the $230’s, at most $240, before we get a dip down. This dip is by no means a correction, it is simply buyers taking their foot off the accelerator for a bit. Most data points to ETH having bottomed, and it is safe to assume this has happened.
XRP just broke above a year old trendline. But, as you can see, it did so quite a few times and still came back below it.
If you were to view XRP on a monthly chart, you would see that this is the correct timeframe for ascertaining whether it is an uptrend or just sellers taking some pressure off the market.
If XRP closes September above this trendline, it is near certain that it will see a monumental run-up, close to $1. However, dealing with XRP is tricky because of the way Ripple Inc dumps tokens on the market.
As it isn’t a mining-based cryptocurrency like Ethereum and Bitcoin, the supply-demand mechanics are incredibly difficult to estimate. XRP is the most uncertain coin in terms of price action for this exact reason.
This aside, if XRP manages to break past $.327, it will head for $.37-.38. Regions pointed out are key levels of liquidity for XRP.