Bitcoin frenzy continues above $13,000
Julien Moretto – 26 Jun 2019
Incredible increase for Bitcoin this week. The cryptocurrency leader exploded by 36.52% and is trading around $12,400 (€10,900) on June 26 at 12pm.
According to CoinMarketCap, market capitalisation is now up to $360 billion against $280 billion last week. Bitcoin market dominance explodes to 61.3%. Volumes remain high but no more so than last month: around 20 billion were traded on a daily basis over the last few weeks on Bitcoin, in a market that is once again becoming as volatile as at the end of 2017.
If altcoins progress slowly against currencies such as the euro or the dollar, they lose a lot of value against Bitcoin. Ethereum is performing a little better this week. In the top 50 marketcap, only cryptoassets like Neo or Qtum are as good as Bitcoin this week.
Here are the main price levels to watch out for:
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Bitcoin didn’t consolidate. On the contrary, as soon as the price approached the psychological level of $10,000 (€8700), the increase accelerated. Price first went sideways above $11,000 before continuing with an even stronger increase on Tuesday, June 25.
The rise is very strong and now looks parabolic, even in daily time frames. Anticipating the end of such a powerful movement is not possible. The technical levels may not react.
When observing the Bitcoin chart from a long-term perspective, we notice that the current increase has already retraced more than 50% of the 2018 entire bear market. These levels are indicated by the Fibonacci retracements tool, used by many traders. The next technical level that can be identified is the area of $13,400 (€11,800) which corresponds to 61.8% of the bear market retracement: a Fibonacci level often observed by traders.
Profits can be taken at this level, but there is no guarantee that price will react considering this very strong bull run.
For those who have already bought Bitcoin lower, the best thing to do is just hold until the market calms down. Making new buys in this context remains very risky. For those who still want to buy now, we strongly recommend placing a stop-loss to resell in case of a sharp downturn.
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Ethereum is still struggling against Bitcoin but makes a nice uptrend against the euro, giving a nice 29% return over the past seven days, at $345 (€304).
During the night of June 25 to 26, the price of Ethereum compared to Bitcoin drop to the major support of the 0.025 BTC/ETH. Historically, the asset has always reacted positively when touching this area. This technical configuration is a buy signal on Ethereum, keeping in mind that this scenario will be invalidated if the price falls below the 0.025 BTC/ETH level.
If the Bitcoin price stabilises and the Ether price shows a good upward momentum, this position will generate good gains, starting with a target on the resistance at 0.030 btc/eth.
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The Litecoin price moved sideways this week against the dollar and the euro, with a very small variation of 0.08%, trading at 136$ (120€).
On the other hand, he lost 30% against Bitcoin in one week. This fact is due to the very strong increase in Bitcoin. Looking at charts, the Litecoin price is dropping to the strategic level of 0.010 btc/ltc, which had been the signal for the start of the rise on Litecoin in early February.
It is therefore preferable to wait for the price to come to these levels. If at the same time, Bitcoin starts to consolidate and Litecoin shows bullish signs, buying will be possible. Nevertheless, we need to remain cautious on Litecoin: its halving is scheduled for the beginning of August and most of the uptrend is probably behind us.
Tops & flops of the week (top 50 marketcap)
1- Qtum: +56,48%
2- NEO: +47,42%
3- Bitcoin (BTC): +40,56%
1- Tezos (XTZ): -7,70%
2- Ravencoin (RVN): -6,48%
3- Basic Attention Token (BAT): -6,11%
Hot crypto news of the week
Will Ethereum be one of Libra’s partners ?
Discussions have started yesterday on social networks Reddit and Twitter by Ameen Soleimani, an Ethereum developer who proposes that a DAO that would represent Ethereum in Libra could work on development as well as creating bridges between the two projects. In terms of computer code, “Move”, Libra’s programming language is very close to “Solidity” which is used in Ethereum. The two projects follow a fairly similar logic, which potentially could make a rapprochement possible. Will the 1.7 billion Facebook users have access to the Ethereum network ? For a deeper analysis on Libra, you can check our article on the subject.
Grayscale, a financial investment giant which received at the end of May 2019 from the FINRA the autorisation to launch an investment product (ETHE) representing shares of a fund that owns ethers, has set up this product on an OTC market. This is a way for investors to offer a financial product with a known regulated structure, but whose performance follows that of the underlying asset, in this case ether. This product quickly aroused the enthusiasm of the markets and is currently traded at values well above the price of ether. The situation is expected to stabilize in the coming weeks. This type of product represents the last step before an SEC-approved ETF-type financial product that would allow any traditional investor to invest in Ether.
Announced several months ago, the first French real estate transaction using a blockchain will finally take place on June 25th. It concerns the AnnA private mansion, located in Boulogne-Billancourt, in the west of Paris. The sale is estimated at 6.5 million euros and two promoters, Valorcim and Sapeb, have agreed to try the experiment by acquiring the property from a physical owner, through this innovative technique.
France is setting up a “Task Force” within the G7 to study Libra’s proposal and its compatibility with central bank regulation. This initiative, which follows the reaction on the subject by Minister Bruno Lemaire, did not, however, provoke any major reactions outside our borders. The G7 seems to be more involved in its Task Force “FATF”, which aims to monitor and supervise anti-money laundering procedures for transactions. On the other hand, US senators and deputies are calling a meeting of Facebook leaders, and asking that the Libra project be suspended until the regulatory authorities have studied it closely, citing an “unprecedented potential impact on the global financial system”.
This week, Coinhouse CEO Nicolas Louvet published an Op-Ed in Capital.fr, warning of the lack of ambition at the European level and the many obstacles facing innovation players in the sector in France. Between preserving the banking lobby and making France one of the players that count in this revolutionary technology the regulator will have to make a choice. Are we condemned to remain “the Minitel Nation”?
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