Technichal analysis

Bitcoin: all about $11000

Julien Moretto – 4 Sep 2019

Bitcoin price is up by about 10% since September 2 and is trading between $10,500 and $10,800 (€9500 and €9800) this Wednesday, September 4. Two things to keep in mind: the support just above $9,000 (€8,200) still holds, but we are still in consolidation mode since the end of June. A clear break above $11 000 (9900€) would announce a break up of the consolidation pattern.

According to CoinMarketCap, market capitalisation is increasing and reaching 268 billion dollars, against 260 last week. Bitcoin continues to strengthen and its capitalisation now represents more than 70% of the crypto market.

Trading volumes remain weak, still around the $15 billion mark traded daily, despite a slight increase at the beginning of the week suggesting that the consolidation pattern is not yet complete. The entire market remains correlated to Bitcoin, with altcoins performing less during bull trends. No assets stand out particularly this week.

We invite you to discover our complete analysis in video (in french):

Bitcoin (BTC)

Bitcoin chart

Coinhouse recommendation: 
Buy on break up signal


Sellers regain control at the beginning of this week with this 10% bounce initiated from the $9500 (€8600) zone. However, the price has not yet left the consolidation zone: the downtrend line which has already rejected the price three times being currently around $10,900 (€9800).

We also have the resistance line at $11,000 (€9900) which rejected the price twice in July and August. The area between $10,900 and $11,100 will therefore be decisive. It is still too early to call for a bull trend to be back. Especially since a technical correction figure: the flat, could lead to a new price reversal when hitting the $11,000 area.

The medium to long term buying strategy is waiting for the price to reach the 11,000$ area, to consolidate and then to break this resistance with a sharp increase in volumes, which would confirm a break up of the consolidation pattern. A bearish move to 9500$ (€8600) would give back control to the sellers and endanger the 9000$ (€8200) support.

Ethereum (ETH)

Ethereum chart

Coinhouse recommendation:
Buy


Ethereum, like all other altcoins, is more bearish compared to Bitcoin since the beginning of the consolidation pattern. Its performance since September 2 is weaker with an increase of about 5%, at $178 (€162) on September 4. Although correlated to Bitcoin on the overall price movements, the Ethereum price did not form a compression figure like Bitcoin, but rather a chartist figure called the descending broadening wedge . This figure could result in a new bull trend.

The price of Ether is currently in our mid-term buying zone between $160 and $180 (€145 and €160). The buying opportunity is still there. The targets to confirm a clear uptrend on Ethereum are the $236 (€212) resistance and before that, the 50-day moving average which now stands at around $200.

But the volumes remain very low. If it increases again with a bearish price action that goes below $160 (€145), it will be a sell signal. Chartist projections would then target a lower buy zone around the $135 (€122).

Litecoin (LTC)

Litecoin chart

Coinhouse recommendation: 
Wait

The situation is worse on Litecoin than on Ethereum. Although Litecoin also has increased by about 5% since the beginning of the week, at $67 (€61) on September 4, the drop has been stronger since the end of June. The volumes remain low and Litecoin could also be in a descending broadening wedge pattern.

Buying Litecoin now is risky because it there is no sign of a bullish reversal except for this chartist figure. For medium-long term buying, better wait for the price to go back between $77 and $85 (€70 and €76), to consolidate and then to break up. A break of $85 with volumes would therefore be a more interesting buy signal on Litecoin

Top & flops of the week (top 50 marketcap)


Tops

1- Decred (DCR) : +6,34%
2- Bitcoin (BTC) : +5,14%
3- KuCoin (KCS) : +4,87%


Flops

1- Cosmos (ATOM) : -15,48%
2- Bitcoin Gold (BTG) : -13,21%
3- QTUM : -12,60%

Hot crypto news

From October 1st 2019, PwC’s Luxembourg subsidiary will start accepting cryptocurrencies as payment from its clients. PwC has been involved, and supports, the crypto ecosystem for many years now.  The firm has no less than 500 employees working on crypto-network subjects. Exposure to crypto is therefore the logical continuation of their adventure. The industry needs leaders like PwC leading the way to lead a more global adoption.

VanEck Securities and SolidX Management will use an SEC exemption that will allow them to offer shares of their Bitcoin Trust. Only institutions such as hedge funds and banks will have access to it. This decision comes in response to the SEC’s constant postponement of its approval of the Bitcoin ETF proposals.

Cryptocurrencies and blockchains have never interested students so much. 28 of the 50 best universities in the world offer at least one course on the subject. Twice as many students as in 2018 say that they had taken a course on crypto. 70% of the courses are held outside the IT department.  Coinhouse is starting a second year with students from Polytechnique and HEC

The startup leading the Dharma project, a decentralized finance protocol based on Ethereum, is launching a new version of its peer-to-peer lending platform. This new direction follows a lack of creation of v1 loans that fell by nearly 85% from April to June. Dharma v2 leverages the smart contracts and liquidity pool of the Compound protocol. It will allow users to borrow and lend at fixed interest rates. This service would add an additional room to the DeFi building, but part of the community is wondering about its chances of success.

Lightning news:

Investors’ attention is drawn to the fact that the content of the articles does not constitute financial advice.
Investing in cryptoassets involves a risk of total capital loss.
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Crypto prices

Name Price
bitcoin
Bitcoin (BTC)
€9,238.70
ethereum
Ethereum (ETH)
€179.50
litecoin
Litecoin (LTC)
€65.96
ripple
XRP (XRP)
€0.240
maker
Maker (MKR)
€414.19

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