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Bitcoin [BTC/USD] Technical Analysis: Investor sentiment drops as market bleeds red

Priyamvada Singh

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Bitcoin [BTC/USD] Technical Analysis: Investor sentiment drops as market bleeds red
Source: Pixabay

The volatility in the cryptocurrency market prevails with most of the control remaining with the bear as of now. BTC is currently down by a mere 0.21%. At press time, the token was trading at $3,996 with a market cap of $69.5 billion. The total 24-hour volume was recorded at $5.4 billion.

1-hour

BTCUSD 1-hour candlesticks | Source: tradingview

BTCUSD 1-hour candlesticks | Source: tradingview

The one-hour timeline of BTC shows a steep downtrend from $4,158 to $3,975. Moreover, there are two supports that have kept the price from hitting rock bottom, i.e., $3,933 and $3,777. At present, a trend breakout is not expected as the prices are yet to reach concentration.

The Bollinger Bands are not depicting an increased volatility in the market but are still predicting a continued high volatility for BTC.

The RSI is bullish on the cryptocurrency as the reading line tends to travel north. However, this stance cannot be confirmed as the indicator has turned its head to follow a downward path.

The MACD made a bullish crossover as well and is fairly positive on Bitcoin. Unlike RSI, MACD is confident with its bullish prediction as the reading line approaches upward.

1-day

BTCUSD 1-day candlesticks | Source: tradingview

BTCUSD 1-day candlesticks | Source: tradingview

In the one-day scenario of the Bitcoin candlesticks, there are two major downtrends since July, one from $8,388 to $6,494 and the other from $6,251 to $4,106. Meanwhile, the support is set at $3,716. Furthermore, the latter downtrend is forming a descending triangle with the support line to depict a strong bearish market for the cryptocurrency. A trend breakout may be upcoming as the concentration in the price increases.

The Aroon Indicator is showing a weakened uptrend, although the downtrend is also weakening after showing much strength in an earlier scenario. The indicator is currently bearish on the BTC market.

The Awesome Oscillator is also bearish on the coins as the bar is red.

The Chaikin Money Flow is in the bear-zone but plans to move up and ahead as indicated by the reading line. The indicator has not confirmed its bearish stance as it has taken an upward approach.

Conclusion

In the technical analysis, while the short-term indicators are bullish on the token, the one-day indicators seem to disapprove. The Bollinger Bands are also indicative of some volatility in the market. Hence, it is concluded that BTC might not be out of the bear-zone yet, but might see glimpses of green every now and then.





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

News

Gemini outperforms Tether; stablecoins struggle as Libra’s shadow looms, finds Fundstrat report

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Gemini outperforms Tether, stablecoins falter amidst hovering Libra shadow, finds report
Source: Unsplash

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.

Source: Twitter

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.





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