Bitcoin, buy now or wait for more clarity on the market?
Julien Moretto – 9 Oct 2019
Bitcoin is quite stable this week, down slightly by 2% over a week, trading at €7450 ($8200) on October 9. In the same time, some Altcoins are beginning to show signs of recovery. XRP gains 10% over the week, TRON 19% and Chainlink increases by an impressive 36% (see video). Bitcoin marked an interesting support at €7100 ($7700). Is it interesting to buy right now? And what about altcoins? The overall market trend will not be clear until Bitcoin break up the intermediate resistance of €7850 ($8550) at first.
According to CoinMarketCap, market capitalisation continues to slightly recover, at $223 billion from $220 billion last week. Bitcoin’s share of the total market capitalisation is declining to 66.3%. The main information to note this week:
- Charts of some altcoins against Bitcoin, such as Ethereum, XRP or Chainlink, are showing signs of a bullish reversal.
- Paypal leaves the Facebook’s Libra project.
- Telegram is scheduled to launch its blockchain by the end of the month.
We invite you to discover our complete analysis in video (in French):
Bitcoin is actually quite stable over the last 7 days, trading around €7450 ($8200), a slight decrease of 2.20% over a week. We advise to hold positions but not to buy more at this price level. What to notice:
- Over the last few days, Bitcoin has marked an intermediate support, bouncing back 3 times over the €7100 ($7700) price level. If the chart break down this level, it will be a sell signal. However, it will not be a strong because just below is the €6550 to €6800 ($7200 to $7500) zone that has already acted as a support in May and June 2019 and that could trigger new buyings.
- The Bitcoin price is currently “stuck” in an intermediate range between €7100€ ($7700) and €7850 ($8550). From a medium-to-long term investment perspective, there is nothing more to do as long as the price remains in this area. A break up of the 8550$ would be a first buy signal, but it remains risky.
- The most decisive level that needs to be break up is the old support of €8200 to €8400 ($9100 to $9400). A bull break of the $9400 level with volumes would be a more significant buy signal.
Ethereum is also stable over the week with +3.40% in 7 days, at €166€ ($182) on October 9. Not the best performer among altcoins this week but holding well its support from €145 to €160 ($160 to $180). As long as the price remains around this level without breaking it down, buying is justified. ETH/BTC chart also shows a bullish pattern. The only negative aspect is the lack of volume. To confirm a more sustainable bullish recovery, it will require a lot more volumes and a price breaking up the former resistance at 212€ (236$).
Regarding Litecoin, we advise to wait until the price of Litecoin goes back to the former support zone between €70 and €76 ($77 and $85). This sideways price action above the pivotal level of €38 to €42 ($42 to $47) and the Fibonacci retracement level of 0.786 of the entire 2019 bull run could justify some buyings. But it is still speculative and risky at this stage. If Bitcoin returns to a longer term uptrend and Litecoin shows positive technical signals (divergence of the RSI, increase in volumes, etc.), then a more buy position may be attempted.
Concernant Chainlink, nous précisons que dans notre vidéo d’analyse mis en ligne au soir du 8 octobre, nous conseillions d’attendre une cassure du niveau résistant des 2,50 à 2,60$. Entre la mise en ligne de la vidéo et la publication de cette article, le cours a déjà cassé cette résistance et évolue maintenant autour de 2,76$ à la mi-journée du 9 octobre.
Nous pensons que Chainlink est dans une phase haussière et qu’il n’y a plus de résistance majeure en unité de temps journalière avant son plus haut à 4,50$. Des ordres d’achats au marché, en plein milieu d’une hausse, ne sont jamais une stratégie optimale et représentent des risques. Chacun doit décider en fonction de son profil. Une stratégie peut être d’attendre un pullback sur la résistance des 2,50 à 2,60$ pour prendre position à l’achat. Mais ce pullback n’est pas garanti.
About Chainlink, please note that in our video analysis posted online yesterday (October 8), we advised to wait for a break up of the resistance level from $2.50 to $2.60. Between the release of the video and the publication of this article, the price has already broken this resistance and is now trading at around $2.76 by midday on October 9.
We believe that Chainlink is in a bullish trend and that there is no major resistance in the daily timeframe before its high at $4.50. Market buy orders, during such an increase, are never an optimal strategy and represent risks. Everyone must decide according to his risk profile. One strategy may be to wait for a pullback on the resistance from $2.50 to $2.60 to have a buy entry. But this pullback is not guaranteed.
Top & flops of the week (top 50 marketcap)
1- Chainlink (LINK) : +50%
2- Basic Attention Token (BAT) : +25,48%
3- TRON (TRX) : +19,16%
1- Unus Sed Leo (LEO) : -7,51%
2- ZCash (ZEC) : -5,27%
3- Decred (DCR) : -3,87%
Hot crypto news
- Paypal withdraws from the Libra project. The Facebook-led project is facing opposition from several governments, and is now suffering its first dissensions.
- Despite the price cuts, Bitcoin is still the most interesting asset of the year, all markets combined. The doubling of its value in 2019 still places it largely in the equity markets, among others.
- After long months of waiting, Telegram should launch its blockchain this month, the end of october being the deadline after which the company would be forced to repay its investors.
- A lawsuit against Bitfinex and Tether is looming: claimants accuse the project of manipulating prices of the cryptoassets market, creating the biggest bubble in history, and generating losses of 1.4 trillion USD.
- IKEA has used Ethereum technology to pay a bill, thanks to the technology developed by the startup Monerium.
- The figure of the week: 40 million wallets have been created since the beginning of 2019 on the blockchain.com platform, demonstrating the interest and growth of the market.
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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