The collective market cap of the coin market tumbled down to a low of $170 billion on April 12. EOS replaced Litecoin [LTC] as the fourth largest cryptocurrency on CoinMarketCap, after the latter was hit badly by the recent market slump.
At press time, Bitcoin [BTC] held a market cap of $88.87 billion and was priced at $5,037. The digital gold registered a 24-hour trading volume of $15.79 billion and slumped by 3.57% over the day.
Litecoin [LTC], the fifth largest cryptocurrency, registered a market cap of $4.78 billion and a 24-hour trading volume of $3.38 billion. The crypto-asset was valued at $78.03 and exhibited a major decline of 8.51% over the past 24 hours.
1-day BTC chart
The candlestick arrangement on BTC’s one-day chart exhibited a major downtrend from $6,459 to $4,186. A small uptrend from $4,198 to $5,089, fueled by the latest surge was also observed. The supports for the crypto-asset were found at $3,902 and $3,602, while the immediate resistances were at $5,663 and $6,562.
Bollinger Bands: The mouth of the bands was open and projected increasing volatility for the coin’s price.
Awesome Oscillator: The closing bar of the indicator was red, suggesting bearish activity in the offing.
Chaikin Money Flow: The CMF was above the zero-line, indicating that money was flowing into the coin market. Hence, a bullish pattern for BTC was forecast.
1-day LTC chart
The one-day LTC chart exhibited two uptrends from $32.90 to $45.68 and $45.68 to $60.31, followed by a minor correction. Another uptrend from $61.31 to $89.43 was registered, propelled by the latest market spike. A minor downtrend from $56.52 to $34.60 was also observed.
The coin has fallen below the $80-mark. However, another potential price break was anticipated, one that may push the coin over the $100-mark. The support points for LTC stood firm at $56.70 and $41.93.
Parabolic SAR: The dotted markers were below the candlesticks, predicting a bullish phase for the silver crypto.
Klinger Oscillator: The KO indicator sustained a bearish crossover.
MACD: The MACD line was also below the signal line after a bearish crossover.
Bitcoin swayed between the bull and the bear, with the coin’s price depicting high volatility. Contrarily, Litecoin exhibited strong bearish activity that was pulling its price down.
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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
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.
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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