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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC remains bullish while LTC exhibits high volatility

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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC remains bullish while LTC exhibits high volatility
Source: Pixabay

The cryptocurrency market cooled down after a collective pump drove Bitcoin’s price from $6,00 to$7,500. The collective market cap stood at $216 billion, following the fall in prices in the early hours of May 13.

1-day BTC chart

The largest cryptocurrency by market cap, Bitcoin [BTC] fell by 1.90%over the last 24 hours and was trading at $7,017, at press time. The crypto-asset held a market cap of $124.1 billion and registered a 24-hour trading volume of $26.70 billion.

Source: TradingView

The one-day BTC chart registered a significant uptrend from $4,143 to $5,153 and another uptrend from $5,143 to $5,740, following market correction. A downtrend from $6,321 to $4,028 was also observed in the above chart. Even as the coin fell shortly after the massive pump, the coin is anticipated to surpass its resistance at $8,000.

Parabolic SAR: The dotted markers were below the candlesticks, indicating a bullish phase for Bitcoin.

Awesome Oscillator: The closing bar of the indicator was green, suggesting some bullish activity for the coin.

MACD: The MACD line was also above the signal line, indicating the coin following a bullish course.

1-day LTC chart

The fifth largest crypto-asset on CoinMarketCap, Litecoin [LTC], held a market cap of $5.30 billion. The silver coin too fell, falling by 2.52% over the past 24 hours after the bull run and was trading at $85.98, at press time. The coin recorded a trading volume of $5.10 billion over the last 24 hours.

Source: TradingView

The one-day Litecoin [LTC] chart registered an uptrend from $32.86 to $66.76 and another uptrend from $66.76 to $73.80. A downtrend from $55.96 to $33.80 was also observed. Even as the latest upswing drove LTC’s valuation beyond the $90-mark, the pump was short-lived as the coin fell below the resistance mark again.

The silver coin found support at $45.04.

Bollinger Bands: The diverging mouth of the bands indicated high price volatility and a potential price break out was anticipated.

Chaikin Money Flow: The CMF was below the zero-line, indicating that money was flowing out of the coin market. Hence, a bearish price pattern for the crypto-asset was recorded.

Klinger Oscillator: The KO indicator projected a bullish price pattern for the coin



Conclusion

Both Bitcoin and Litecoin fell after a brief stint with the bulls. While BTC remained positive, with all its indicators appearing bullish, LTC exhibited more mixed signals despite leaning towards the bulls.





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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

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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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