On the day in which the world stock indices plummet, marking the worst day since the beginning of the year, with collapses of 3% recorded by the Nasdaq (US technology listing), the price of bitcoin (BTC) is rising, proving to be a safe haven asset more and more, in part thanks to the customs clearance it received from the Chinese court that recognised it as digital property.
This turnaround of assessment by the Chinese authorities is increasingly leading to an inverse correlation between the tensions that are occurring between the United States and China as a result of their trade war. This also leads to obvious correlations with regard to the trend of the price of bitcoin compared to the USD/CNY exchange rate (US dollar and the Chinese renminbi).
As the dollar strengthens against the Chinese currency, it seems to be increasingly correlated with an increase in bitcoin purchases, contrary to what happened with yesterday’s strong bearish closure of the US S&P 500 index, which experienced its worst decline in 2019 yesterday. This downtrend halved the gains of the S&P500 stock index.
This morning the price of bitcoin rose by 4% and managed to push over 12,000, regaining the 12,150 dollars, levels abandoned in mid-July and is heading towards the attack of the resistance of 2019 located in the $13,000 area.
This morning the price of bitcoin marks the best increase among the first 50 cryptocurrencies with the highest capitalisation. Only Monero can keep up the pace, rising 4% and trying to regain the threshold of 100 dollars abandoned at the beginning of July.
This situation is beginning to draw a new picture of the sector: bitcoin is increasingly a reference cryptocurrency that guides the markets in both good and bad times, as happened last July. Bitcoin, in fact, was among the best cryptocurrencies to mitigate the decline that was recorded last July, catching many analysts unprepared.
This rise in the price of BTC thus cancels much of the bearish movement recorded in July.
The market cap exceeds the threshold of 315 billion dollars, with volumes that continue to grow, rising even today by about 20% on a daily basis, a step away from the total daily volumes of about 90 billion dollars.
With a market cap at these levels, bitcoin continues to gain market share, now rising to 68% dominance, one step from 70%, levels that have not been recorded since March 2017.
Ethereum tries to keep up, climbing 1.5% with prices that unsuccessfully try to break the resistance of 235 dollars. Despite this upward movement, Ethereum continues to lose a few decimals, arriving at 8% of dominance.
Ripple is worse, falling below the threshold of 4.5%. Today, XRP oscillates around parity, continuing to show that it can no longer stay connected to the evolution of the rest of the sector. Ripple remains around the threshold of 32 cents, levels that have been seeing prices fluctuate since mid-July, very close to last year’s lows.
Bitcoin Cash and Litecoin
Bitcoin Cash recovers the 4th position, climbing 1.6% and reviewing the $350 quota, a level abandoned during the descent of July.
The halving pushed the price of litecoin above the threshold of 100 dollars. For a few minutes it reached $107, but it was short-term speculation. This morning’s decline brought prices back to around $100, where prices have been fluctuating since the beginning of August.
100 dollars continues to be a reference level for litecoin, a possible basis for consolidation, but if not confirmed upward it could attract new speculation.
Bitcoin rising price
At a technical level, the price of bitcoin exceeds $12,300, increasing the bounce from the lows of the last days of July and recovering 35% of the bearish movement that took place last month. The price of bitcoin is one step away from the highs of the year with prices at about 10% from the highs recorded at the end of June, one step away from the 14,000 points.
Bitcoin is currently channelled into an upward movement. In a weekly perspective, it sees a strong bullish structure on a technical basis that will trigger a first wake-up call if in the next few hours prices should drop below 11,000 dollars. Yesterday, however, the trading volumes recorded the highest in the last 20 days, a signal which supports this upward movement.
Price analysis Ethereum (ETH)
Since yesterday Ethereum has been trying to break through the resistance of $235 without success. If so, it would project prices towards the next bullish level currently located at around $255.
For Ethereum the indication of the last days remains valid, with a trend that despite the difficulties remains set to the rise. A first alarm would be triggered only if the prices were to go down to 210-205 dollars.