Bitcoin still strong, altcoins frenzy hitting the market

Consolidation is healthy on Bitcoin this week. The asset is stable, at +1.3%, and remain above the €8,400 ($9,200) zone on February 5th. This price action favors a new uptrend in the market, which could project the price into the €8800 to €9400 range ($9700 to $10,500).

The Altcoin market is doing even better. Very good performance by Tezos (XTZ), which has gained 30% over the last seven days and breaks its 2019 high of €1.70 ($1.90). Icon (ICX) even goes into a technical bubble pattern with more than 150% rise in one week. With 3 months to go before the halving, the market sentiment is reversing more and more in favor of buyers. Nevertheless, it is still important to identify the price zones that will trigger potential corrections. Here is our analysis.

• According to CoinGecko, the market capitalization continues to increase this week, at $261 billion compared to $256 billion last week.

• Bitcoin’s dominance is regressing at 64.7%, down from 66.2% last week.

• The two best performances of the week in the top 20 are Tezos (XTZ) with +30.3% and IOTA with +17.2%.

• Stablecoin exchanges on the Ethereum blockchain have exceeded those of ethers. This shows that the demand for stable cryptographic assets is strong.

We invite you to discover our complete analysis through this video (february 4th) :

Bitcoin (BTC)

Coinhouse recommendation : 
Hold

• Considering the nice consolidation going on in Bitcoin, we recommend to hold this week, following last week’s slight profit taking. Bitcoin is holding the €8,400 ($9,200) pivot zone well and is creating a little more of a long-term bullish recovery sentiment in the market.

• The next zone to watch for profit taking is the one between 8800€ and 9400€ (9700$ and 10 500$). However, it will be necessary to remain attentive to the signals given by the indicators when approaching this zone and not to take profits automatically.

• Le momentum MACD semble proche d’un retournement baissier en unité de temps journalière. Ce scénario pourrait offrir des zones intéressantes de rachat à 8000€ (8900$) et 7700€ (8600$). Mais le cours du Bitcoin peut s’emballer à la hausse rapidement, sans offrir de retracement. L’installation durable du RSI en zone de surachat dans l’unité de temps journalière sera un bon indicateur de cette psychologie de marché.
• MACD Momentum appears to be close to a bearish reversal in a timeframe. This scenario could offer interesting buyback zones at €8000 ($8900) and €7700 ($8600). But Bitcoin’s price can go up quickly, without offering retracement. A good indicator of this market psychology will be the sustained installation of the RSI in the overbought zone in the timeframe.

• The January monthly closing reinforces the probability that the corrective movement initiated since the end of June 2019 will be completed.

Ethereum (ETH)

Coinhouse Recommendation : 
Buy

• Our buy signal finally arrived on Ethereum, when the price crossed the 165€ ($180) threshold on January 29th. Assets gained 9% this week, at €177 ($196) on February 5.

• Even if buying now is already less interesting on Ethereum, we remain on a purchase recommendation. The Fibonacci extension levels of the previous bearish phase project a price that could rise to a range between €187 ($209) and €200 ($222). A level that will be conducive to initial profit taking, subject to signals of reversals on the main indicators.

• If the correction occurs earlier than expected, which remains less likely, €158 ($175) to €165 ($180) remains an interesting buyback zone.

Tezos (XTZ)

Coinhouse Recommendation : 
Buy

• Tezos (XTZ) remains impressive and breaks its major resistance of 1.70€ ($1.90) this week. The performance is noteworthy: +30.3% in seven days to now trade at €1.87 ($2.07) on February 5th.

• In our last analysis on Tezos, we recommended to check the resistance of the €1.45 ($1.60) and to buy if it was broken up. This analysis is bearing fruit today.

• The price action seems to be accelerating since the €1.70 ($1.90) break. The RSI has moved into the overbought zone on the timeframe and we have no short term reversal signals. Those who have not yet bought Tezos can therefore buy, even if the performance will be lower.

• No rush to take a profit. We let the trend unfold. Fibonacci extensions give a range between €2.08 ($2.31) and €2.30 ($2.57) to consider possible profit taking, conditional on the signals of the indicators at that time.

Top & flops of the week (top 50 marketcap)

Tops

1- Icon (ICX) : +125%
2- Lisk (LSK) : +66%
3- Tezos (XTZ): +34%

Flops

1- Cosmos (ATOM): -8,5%
2- Bitcoin SV (BSV): -4,7%
3- Bitcoin Diamond (BCD) : -0,3%

Crypto latest news

• A Chainalysis study shows that only 0.08% of crypto transactions are connected to illegal activities. Illegal transactions represented 790 million dollars on the dark web in 2019. The study lists the main concerned cryptocurrencies, except the Monero which is only accepted on one dark web marketplace.

• The PSG is launching its own cryptocurrency. It will allow fans to vote on club decisions, and allow them to participate in events. The Socios app is already being used by Atletico Madrid and Juventus, among others.

• Tezos is responding to strong demand for asset tokenization and high-value financial contracts. STOs for a total value of $2.6 billion have already been announced. Projects that could use Ethereum’s ERC1404 standard prefer Tezos, particularly for the enhanced security of its smart contracts.

• Stablecoin exchanges on the Ethereum blockchain have exceeded those of ethers. This shows that the demand for stable cryptographic assets is strong. In particular, stablecoins are a way to push blockchain assets towards mass adoption. Being indexed to fiduciary values, their value proposition is nevertheless low compared to native cryptosystems over a long term horizon.

• $900 million. This is the new record set by DeFi (Decentralised Finance). This is the dollar value of assets used in this new form of peer-to-peer finance. An increase of 265% in one year.

• Decentralized marketplaces, also known as DEX for Decentralized Exchange, are becoming more complex. 1inch now offers the possibility to place limit orders decentrally via these smart-contracts. How long before the "flippening" of volumes between centralized and decentralized marketplaces?

• Ethereum miners are bullish. They are accumulating native ETH assets and do not seem to want to part with them at these prices. It is estimated that they are accumulating 11% more ETH. From 1.54 million to 1.69 million ETH in one year.

• Fifteen minutes. That’s how long it takes Kraken’s security teams to hack a Trezor wallet. We’ve always promoted Ledger’s products as the most secure. The architecture and the technology used is not the same and has never been hacked. Ledger is based in particular on the smart card technology which is also used to secure your bank cards on a daily basis.

• Bitpay announces that it has enabled $1 billion in merchant transactions in 2019. Bitcoin is the most used asset by merchants. The question arises as to how stablecoins will be used in the future, as they still represent a small amount of the volume.
  

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