Technical analysis

Bitcoin rallies 40% in 24 hours, are we at the turn of a new bull market?

Julien Moretto – 30 Oct 2019

The cryptocurrency market will never end to surprise. Bitcoin was up 40% in 24 hours on October 26, going temporarily above $10,000. It is now trading around €8,300 ($9,200) on October 30. Such an increase in such a short period of time had not been observed since… 2011!

Technical resistances were broken during this strong bounce, suggesting a bullish reversal. Regarding altcoins, the increase is less impressive, except for Chinese projects such as NEO, which earned up to 100%, and Ontology (ONT) up to 123%. Should you rush to buy now if you were out of the market? We analyse the key market levels.

  • According to CoinMarketCap, market capitalisation is up to $249 billion from 212 billion last week.
  • The dominance of Bitcoin rises a little, to 67.4%.
  • The volumes for the day of October 26 broke the 2019 record (44.5 billions traded).
  • The prices of the main Chinese altcoins such as NEO or ONT exploded with increases exceding 100% at the top of the bounce.
  • BAKKT’s BTC futures contracts break a record with 1179 contracts open on October 26.

We invite you to discover our complete analysis in video (in French and dated from October 29):

Bitcoin (BTC)

Bitcoin chart

Coinhouse recommendation: 
Buy

  • Our recommendation this week is to buy. But we specify that buying must be made on well-identified supports. If the price holds above the pivotal level of €8,200 ($9,100) for the next few days, then buying is justified for those who have not buy on the €6,550 and €6,800 ($7,200 and $7,500) support.
  • For risk profiles: an interesting buy level would be the €7,900/8,000 ($8,800/8,900) zone which corresponds both to a 50% correction of the 26 October bounce and to the closing of a new gap that formed this weekend on the CME Bitcoin futures contracts.
  • The correction we observed since October 27 is a sideways one. It is not impossible to see a deeper correction, with the price going back to the level between €7,300 and €7,700 ($8,050 and $8,500).
  • Dropping below €7,300 would challenge the uptrend and could be a sell signal.
  • If the increase directly continues, the level of €10,000 ($11,100) will be a difficult resistance to break. If the price rises above, a medium-term bullish recovery will be definitively confirmed.

Ethereum (ETH)

Ethereum chart

Coinhouse recommendation: 
Hold

  • Ethereum experienced a less impressive bounce but still up by 15% this week, at €167 ($185) on October 30.
  • Our recommendation this week is to hold. The price is now slightly above our buy zone from €145 to €160 ($160 to $180).
  • An intermediate resistance at €180€ ($200) was formed. The chart has to break it to confirm the current bounce.
  • If the price goes back and then breaks up the €210 ($235) pivot, then a new uptrend will set in on Ethereum.
  • A clear drop under 145€ will be a sell signal.

Litecoin (LTC)

Litecoin chart

Coinhouse recommendation: 
Wait

  • Litecoin bounces by 19% over a week, at €52 ($58).
  • Our recommendation this week is to wait before buying some itecoins. The price shows potential signs of bullish reversal but it is still too risky to make an entry.
  • The first level which would give a buy signal: the cross of the €56/58 ($62/65) pivot. This level previously acted as a support at the end of August. Going back above would be a first positive signal, but still risky.
  • A second less risky buy signal on Litecoin is to enter when crossing the major pivot between €70 and €75 ($77 and $85). If the price goes back above this level, then a mid-term bullish reversal will be confirmed.

Top & flops of the week (top 50 marketcap)


Tops

1- Ontology (ONT) : +63,49%
2- NEO : +56,38%
3- Tron (TRX) : +47,58%


Flops

1- 0x (ZRX) : -8,88%
2- Basic Attention Token (BAT) : -5,45%
3- Unus Sed Leo (LEO) : -2,07%

Market recap 7d

Hot crypto news

  • In the meantime, the Chinese central bank is preparing its own cryptocurrency.
    Faced with Libra, China recognizes the need to launch its own state cryptocurrency.
    It will remain strictly under state control.
    Consumers and businesses could exchange their Yuan for the new currency.
    It would be used via a digital portfolio and could completely replace cash.
    In the meantime, no news of a cryptoeuro.
  • Bakkt exceeds its maximum volume
    After a disappointing start, Bakkt is enjoying growing success.
    We reach a daily volume of $4M, up 178%.
    In addition to forward contracts, Bakkt is preparing to launch options on Bitcoin in December.
    This type of financial instrument is essential for institutional investors.
  • Facebook will leave the Libra project without the agreement of the regulators. 
    It was announced by Mark Zuckerberg himself, in front of a skeptical US House of Committee.
    It’s hard to say if Facebook will keep its word, but Libra’s arrival seems to be compromised as we get closer to 2020.
    The current promise is to remove the basket of currencies that shocked the states and base each Libra on a single currency.
    Fortunately, we know a few alternatives for global digital cash!
  • Uber is getting into financial services!
    Just like a fashion trend. Technology giants take over the financial sector.
    That would scare the commercial banks.
    Uber Money aims to facilitate the financial flows of its users. 
    But we see it with Libra: large-scale projects face a lot of resistance. 

L’attention des investisseurs est attirée sur le fait que le contenu des articles ne constitue en aucun cas un conseil en investissement.
L’investissement dans les cryptoactifs comporte un risque de perte totale en capital.
Pour plus d’informations, n’hésitez pas à prendre contact avec notre service support.

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