The cryptocurrency market has been seeing some major shift in coin positions as Bitcoin [BTC], which started the initial market crash, has slowly begun to climb back up in terms of price. The cryptocurrency, the largest in the market, has returned to the $4,000 region after languishing below it for over three days.
The one-hour chart shows that Bitcoin prices have slowly started a sideways movement after a substantial uptrend. The uptrend lifted the prices from $3,744.4 to $4,313. The support for the cryptocurrency has been holding at $3,598.53 while the immediate resistance is still at $4,578.14.
The Relative Strength Index has stayed in the middle of the graph after crashing from the overbought zone. This signifies that the buying pressure has come down to form an even match with the selling pressure.
The Chaikin Money Flow indicator has fallen below the zero line which is a bearish signal. The slight spike on the graph is due to a sudden influx of money into the Bitcoin ecosystem.
The daily chart paints a bleak picture for Bitcoin with the presence of a significant downtrend. The price fall due to the downtrend saw Bitcoin come down to $4,268.43. The support on the one-day chart is still at $3,717.25 which was formed recently.
The Bollinger bands have just started a slight convergence which signifies the end of the ongoing bearish breakout. The size of the breakout was significantly greater than the previous one, as indicated by the size of the Bollinger cloud.
The MACD indicator points to a bullish crossover, with the signal line and the MACD line climbing up. The MACD histogram, on the other hand, has been predominantly bearish.
Bitcoin’s sudden surge had caused a lot of people to believe that the bull run had started, but alas that is not the case. The RSI, CMF and the MACD all predict a sideways price movement while the MACD states that there may be a slight bullish spike around the corner.
Subscribe to AMBCrypto’s Newsletter
Gemini outperforms Tether; stablecoins struggle as Libra’s shadow looms, finds Fundstrat report
Last week might have been the last phase of the ‘Gemini’ as Zodiac signs go. However, the twin-heads have surprisingly outperformed their stablecoin equivalent, Tether [USDT] as Libra scaled the market. With bullish sentiment emanating from Menlo Park, pushing Bitcoin [BTC] into fifth-heaven, stablecoins on the whole faltered.
According to a recent Weekly Performance Analysis by New York-based Fundstrat Global Advisors, the FS CryptoFX Stablecoin index fell by a whopping 21 percent against BTC. Further, the same index was over the past month, down by over 35 percent and in the past 3 months, the stablecoin index fell by 175 percent.
Fundstrat, with reference to the nature of the FS CryptoFX Stable Index, stated,
“The FS CryptoFX Stable index is designed to track the performance of cryptocurrencies which are designed to be “stable.”
The Winklevoss twins’ Gemini Dollar [GUSD], which many expect to be eaten up in the Libra storm of 2020, overtook USDT on both the 1-week and the 2-week percentage price chart, a surprise to many.
USDT, despite accounting for a percentage weight of 74 percent, saw neutral movement over the past week, while GUSD inclined by a notable 1 percent. The only stablecoins that moved backwards on the seven-day change chart were the crypto-collateralized stablecoin DAI and Paxos Standard.
A similar trend was seen in the 14-day stablecoin price chart, relative to their weight, with GUSD outperforming USDT.
On the eve of the Libra announcement, the Winklevoss twins had both predicted that other FAANG companies could come out with their own coins to rival Facebook, a slightly tongue-in-cheek remark that presumably emanated out of spite over Zuckerberg once again overshadowing the Gemini founders.
Despite numerous reports on Libra’s apparent lack of one-for-one backing of USDT and the complexities around the Bitfinex-iFinex-Tether matrix surfacing in April with the New York Attorney General’s report, Tether has been performing well.
A recent Longhash report scored the top stablecoin 90 out of a possible 100, calling it “Extremely Healthy.” To add to this, a study by Binance Research stated that USDT found maximum usage among its institutional and VIP clients, operating in the books of 80 percent of the clients queried, while the next most dominant stablecoin was Circle and Coinbase-propelled USD Coin [USDC], raking in 45 percent usage.
Subscribe to AMBCrypto’s Newsletter