The trend of the day shows a balance among cryptocurrencies in positive and negative territory, although there is a physiological retracement movement due to the profit-taking following the rises of the last few days.
These are rises that should be monitored more closely in the coming days in terms of reliability. Not everything should be contextualized in these days, because already from the lows of mid-December there were clear signs of a reversal of the trend.
The rises in the last 72 hours have been characterized by significant volumes, not only on the spot market but also for futures and options on the CME, whereas the spot market has seen trades that had not been recorded for three months.
This is a mix of signals that gives hope for the near future, which is why the retracement will help determine where prices will consolidate the support levels from which to restart.
After three days of euphoria for almost the entire cryptocurrency market, with a few exceptions such as Ripple, the sector has returned to levels that had not been recorded for some time, giving a clear signal that the crypto market wants to put behind it the last quarter of 2019 which had not been very bright.
These last few days give a strong signal in terms of weekly performance, most of which are double-digit, and which yesterday, in particular, saw the rallying of several Bitcoin forks.
The one that stood out the most, especially because it has been most discussed and debated, was Bitcoin SV (BSV) followed by Bitcoin Cash (BCH). However, Bitcoin Gold (BTG) and Bitcoin Diamond (BCD) also took advantage of the triple-digit bullish impulse of BSV, correlated to the news about its founder, Craig Wright.
Yesterday was characterized in particular by these four forks of Bitcoin which remains the leading beacon of the entire sector and with yesterday’s rise is testing the $8,800, where after these three days comes a first slowdown where the bullish coverage prevails and which does not allow to extend to the second level of resistance in the $9,300 area.
Among the best today, there is Augur (REP) in 37th position with a 184 million capitalization. Today it climbs in the wake of what has happened in recent days by more than 50%. Continuing yesterday’s trend, Bitcoin Diamond (BCD) is doing well, which, after yesterday’s jump of 120%, today continues with a more “modest” 13%. Very well also Kyber Network (KNC) which rises with the same intensity as BTG.
Dash continues to stand out with today’s +5%, surpassing its direct competitor Monero (XMR) and reaching the 10th position. Dash gives a clear signal of recovery by making itself noticed with this move which, from the lows of the beginning of the year marked on January 2nd, marks an increase of 300%, quadrupling the value in just over two weeks. An excellent result for Dash, who is trying to redeem itself from the weakness of the entire second half of 2019.
ZCash (ZEC), in line with what is happening in this new year, which appears to give credit to privacy coins, is not losing ground to Dash and Monero and enjoys a respectable rise that from the lows of the beginning of the year, with yesterday’s high close to $60, marks a performance of +120%.
Total capitalization, after touching 240 billion dollars, with today’s slowdown remains just below this threshold. The dominance of Bitcoin, which has already fallen behind in recent hours highlighting the rises driven by the altcoins, is a few points away from last fall’s highs close to 67%.
The movements of the last weeks make Ethereum rise to 7.5% while Ripple has experienced a rise decidedly less intense than the rest of the sector, which is reflected in the dominance that does not rise and remains at 4.3%.
The retracement of Bitcoin (BTC)
With the surges of the last few days, Bitcoin returns above the $8,800 threshold it had abandoned in mid-November, providing a nice bullish signal that should be confirmed in the coming days.
The trend of the new year would only be affected with declines below $8,000 or $7,800. A consolidation above $8,500 would give a strong signal of confirmation of the recent upturn, to then aspire to the next bullish movement with a target above $9,000.
Ethereum (ETH)
Ethereum is also set upwards, with greater intensity compared to Bitcoin. From the lows of mid-December to the highs touched yesterday, ETH sees prices gain 50% going to test the $170 area abandoned in mid-November.
The retracement will not have to go below $155 to not affect the current bullish trend that exploded in the last three days.
A consolidation above $155 would prepare the next upward phase by targeting the former dynamic resistance threshold at $180.
