Bitcoin under $10,000 for the last time?
Julien Moretto – 4 Mar 2020
The last few days have been intriguing in the crypto market. While the coronavirus crisis was causing the world’s stock markets to plummet, Bitcoin has not benefit from the situation, as it suffered a fall, albeit a moderate one. On March 4, its price remains above the €7,800 ($8,500) level, which seems to have acted as a support, giving the recent decline a corrective pattern. Some indicators are showing the first signs of an uptrend reversal. With almost two months to go before the halving, a new bullish sequence could send Bitcoin’s price above $10,000 long-term.
About the Altcoins, they have suffered more from the drop of the last few days. Ethereum (ETH) and Litecoin (LTC) lost 11.5% and 17% respectively over a week. Chainlink (LINK) stands out this week with a 30% increase. Let’s take a look at the market.[passster headline=”This article is for Premium members only” placeholder-text=”Enter your password” instruction=”You have to be a Premium member to access this content
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- According to CoinGecko, market capitalisation continues to decline to $252 billion from $262 billion seven days ago.
- No big moves on Bitcoin’s dominance: 63.7%, compared to 64.3% last week.
- Chainlink (LINK) is the only cryptocurrency in the top 20 to have already recovered the entire bearish move with a 30% increase over the last seven days.
- The Steem cryptocurrency scandal is heating up the market this week. Justin Sun, creator of TRON’s cryptocurrency, is said to have managed to take control of Steem with the help of large exchanges and by taking advantage of the shortcomings of the DPoS (Delegated Proof-of-Stake) consensus on Steem.
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Coinhouse Recommendation :
- Although a longer correction is still possible, Bitcoin’s price is currently on an interesting level for medium to long-term purchases: from €7,700 to €7,800 ($8,500 and $8,600). The 200-day moving average currently supports the price.
- To be assured of a sustained bullish recovery, the price must first break out of the intraday resistance at €8,100 ($9,000) and then out of the €8,300 to €8,500 pivot ($9,200 to $9,400). Those who do not wish to buy on the current level can interpret the crossing of these resistances as signals to buy. Once these two levels have been crossed, the symbolic $10,000 resistance should not pose too many problems for a further uptrend.
- However, it is not impossible that the drop continues a little longer. In that case, the price should find another support on the €7,200 ($8,000) level, which corresponds to the 0.618 Fibonacci retracement of the whole 2020 rise. A level that will certainly be noticed by the market operators and will represent a new buying opportunity. We will also be watching for an upcoming bullish reversal of the MACD momentum indicator on the daily timeframe , which will reinforce the reversal sentiment.
Coinhouse’s Recommendation :
- Ethereum (ETH) is suffering more than Bitcoin and is down 11% this week, at €201 ($223) on March 4. This decline is only corrective at this stage and does not question the fundamental uptrend that began in early 2020.
- Ether’s price is currently on the €205-208 ($220-225) level that we had identified for purchases. If the correction continues, we will be monitoring the level between €180 and €183 ($200 and $205) which should also act as a support. These two areas correspond to key Fibonacci retracement levels, as shown on the chart.
- The sustained recovery of the bullish momentum will be confirmed when the €238 ($250) pivot level is broken. It will be possible to strengthen buying positions on this level.
Coinhouse’s Recommendation :
Buy on breakout
- Let’s take a look at Chainlink (LINK) which is the best performing altcoin this week, up 29%, posting a price of €2.52 ($4.65) on March 4. Since the beginning of the year, the trend is impressive with a 170% increase.
- The €3.10 ($3.15) pivot gave the fastest speculators the opportunity to make very interesting purchases. The bounce has been very quick since February 26, and Chainlink’s price has already returned to its previous highs between €4.25 and €4.55 ($4.60 and $4.90).
- On the daily timeframe, no candle managed to close above the €4.25 ($4.60) level during February’s rise. Any daily close above $4.60 will therefore be interpreted as a buy signal, especially if Bitcoin is also rising again.
Top & flops of the week (top 50 marketcap)
1- Chainlink (LINK) : + 33%
2- Bitcoin Gold (BTG) : +10,6%
3- Huobi Token (HT) : +5,7%
1- Litecoin (LTC): -17,4%
2- Ethereum Classic (ETC) : -16,3%
3- Cardano (ADA) : -15,8%
Latest Crypto News
- The Bitcoin hashrate reached an all-time high on March 2nd.
This is the total computing power put at the service of the Bitcoin network by the miners (Proof-of-Work). The Halving on Bitcoin, which is expected to take place around May 12, 2020, could explain the intensification of miners’ work despite the recent drop in the price of Bitcoin. This increase in hashrate shows that miners remain confident and anticipate a rise in the price. It remains to be seen whether the hashrate will not decrease after halving, as it was the case for Litecoin (LTC) last year.
- Justin Sun, the founder of Tron, takes control of the Steem blockchain.
The scandal was played out in two parts. First, Justin Sun acquired Steemit and thus a large amount of Steem tokens. Then some large exchanges used the voting power of the Steem tokens they held to restructure the consensus algorithm of the Steemit platform and give power to Justin Sun, who then ousted 20 of the 21 representatives of the Steem blockchain. Following this event, many members of the Steemit team made the decision to withdraw from the project entirely.
- Germany recognises cryptocurrencies as a financial instrument.
Until now, this status was only given to security tokens. The BaFin gives cryptocurrencies the following characteristics: They are not issued by a central bank or a public body. They do not have the legal status of a currency but can be used by individuals as a means of exchange or to make payments. They may be transferred, exchanged and stored electronically or used as a means of investment.
- Under pressure from international regulators, Facebook changes Libra’s project.
It is decided to introduce digital versions of government-supported currencies, such as the US dollar and the Euro, in addition to the Libra token. Libra will thus present itself more as a payment network, similar to Paypal but built on the blockchain, rather than a single cryptocurrency.
Investors’ attention is drawn to the fact that the content of the articles does not constitute investment advice.
Investment in cryptocurrencies carries a risk of total capital loss.
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