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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC bulls surge as LTC joins the ride

Yash Rajan

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Source: Pixabay

Bitcoin [BTC] continued to hold the title of the king of cryptocurrencies, with over 56 percent dominance in the entire market. According to CoinMarketCap, at press time, it was priced at $7,941.01 with a market cap of $140.81 billion. The 24-hour trading volume of Bitcoin was $33.39 billion, with a negative change of 1.04% over 24 hours.

BTC- 1 Day

Source: TradingView

Source: TradingView

The 1-day chart showed that there was an uptrend from $3816.18 to $8058.08. There was no major downtrend for Bitcoin. First support line stood at $4889.84 and the second support line stood at $3546.06. It got opposition from resistance line at $8220.35.

Bollinger Bands: Bands were diverging, indicating high volatility rate for Bitcoin.

Awesome Oscillator showed that the closing bar was green, signifying some bullish buying opportunity. Also, short-term momentum was greater than the long-term momentum.

Chaikin Money Flow showed the indicator’s line above the zero-line, demonstrating an influx of money into the market. It showed a bullish pattern for the chief crypto-asset.

LTC – 1 Day

Litecoin [LTC] gained momentum after continuously sluggish movement over the past few weeks. This was ignited by Bitcoin’s price rally. LTC stood strong at 7th position on CoinMarketCap. It was priced at $99.69, with a market cap of $5.81 billion and 24-hour trading volume of $6.68 billion.

The 1-day graph showed that LTC started gaining pace and moved past $90. Resistance line stood at $102.52 and the 1st support line stood at $60.58 and the second support line stood at $32.06. There was a sharp uptrend from $38.26 to $93.07 and a mediocre uptrend from $94.02 to $102.99.

The Bollinger Bands showed that the bands were diverging, indicating high volatility rate.

The Awesome Oscillator indicated bullish buying opportunity, implying that short-term momentum was greater than long-term momentum.

The Chaikin Money Flow indicator suggested that outflow of money was more than influx of money into LTC market.



Conclusion

Bitcoin gained momentum to continue on its bullish trend, while Litecoin too was starting to ride the bull wave.





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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

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JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





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