Bitcoin has seen a reduction in volatility in recent days; the same cannot be said for the cryptocurrency market. Altcoins are starting to look incredibly bullish, the likes of Cardano, Tezos, Cosmos, Litecoin, and even Ethereum are looking to move with some strength.
A pullback is still very much possible with BTC as a small retracement seems to be on the cards any time now. Even a pullback of 4-5% can have an adverse impact on the Bitcoin price.
Derivatives have been picking up some real steam off late. XRP, in particular, has seen two USD base perpetual swaps listed on two of the most liquid exchanges: Binance and BitMEX. Going forward, we believe the derivatives market is going to become more important, as more sophisticated speculators foray into crypto.
On the fundamental side, more uncertainty in global markets apparently translates to bullish price action for BTC. Before you establish with utmost certainty that “bitcoin is a hedge against the global economy,” understand that Bitcoin’s bull markets have correlated with strong appreciation in stocks.
Bitcoin has never existed in a recession and nobody knows how market participants will react when a recession actually takes place. Some people think they know, but they actually don’t. Nobody does.
BTC pulled ahead from the 61.8% fib but has found resistance at the 78.6 level. Historically, the 78.6 level has strong precedence in crypto, so this should not be easily ignored.
Declining volume continues to keep to the bearish momentum intact. For a real bullish move to emerge, high volume moves are the need of the hour.
But, there’s more:
That red box represented support turned resistance. The last time BTC rejected this level, we fell from above $10,000 to $6,300. Another rejection of this level would almost confirm a strong downturn.
We can give Bitcoin some time to reclaim this zone, but it has to happen.
Watching ETH here to see if it breaks $200 and hits the 38.2 fib level, or if it double tops around $200 and continues down.
Many are expecting to see Ethereum decouple from BTC here, but we’re not sure how realistic that is until things start looking better for the broader crypto market.
If BTC falls, we’re certain we’ll see the same on ETH as well.
XRP has been explosive thus far in 2020, and may not even see the $.15 range we believed was inevitable. Of course, a downturn is still possible.
Interested to see how XRP reacts at the top of the blue zone, considering buy volume is the highest on the daily chart in months. Not sure if XRP perpetuals have been giving it renewed strength, which carried over to the spot market, but it’s definitely worth a watch.
For once, XRP truly looks bullish, and it very well could decouple from BTC further, but only if all the right forces come together.