Is Bitcoin about to trap the buyers?
Julien Moretto – 13 Nov 2019
Mixed feelings on the cryptocurrency market this week. Bitcoin is quite disappointing with -5.7% over a week, falling back to the €8,000 ($8,800) level on November 13. While the market psychology is less bullish on Bitcoin, some altcoins realise strong gains. Over the week, Tezos (XTZ) is up by 25%, Chainlink (LINK) +12%, VeChain (VET) + 31.5% or NEO + 17%. Finally an altcoins season? Which assets are about to perform? Here’s what to know from the market this week.[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 is down this week, to $241 billion from $253 billion last week.
- The Bitcoin dominance also decreased to 65.6%.
- China is about to invest more than $2 billion in the blockchain technology by 2023.
- Ripple (XRP) disappoints again by failing to break the $0.31 level that would have announced a new bull run.
- Chainlink (LINK) is currently breaking up the $3 key level.
- The best performance of the week in the top 50 came from VeChain with +31.5%.
We invite you to discover our complete analysis in video (in French and dated from November 12):
- Our recommendation is still to buy Bitcoin this week. The current price area, between €7,700 and €8,000 ($8,500 and $8,800) is a good buying opportunity. It corresponds to a correction between 50% and 61.8% of the strong increase of October 26. These Fibonacci retracements are often observed by the market operators.
- But this buy entry remains risky. We do not have confirmation of a mid-term bullish reversal yet. A breakdown of the €7,700 ($8,500) level with a daily close will be a sell signal.
- To regain a mid-term bullish sentiment, the price must go back above the €8,500 ($9,400) pivot and the 200-day moving average currently located on the 9300$ level. A daily close above these levels may be interpreted as a new signal to buy more.
- Nothing new on Ethereum this week, stable with -0.8%, at €170 ($187) on November 13.
- Our recommendation will be to hold as long as the price remains trapped between the top of our buying area at €160 ($180) and the intermediate resistance of €180 ($200).
- A bullish break of the $200 level with volumes remains a signal to buy more.
- For a longer-term buy signal, it will be necessary to wait for the breakup of the €210 ($235) pivot.
- A clear breakdown of €145 ($160) remains a sell signal.
- Litecoin loses 2% this week, falling back to 56€ (62$), but remains on a bullish momentum since October 25.
- We recommend to wait once again this week before buying Litecoin. The price arrives on an interesting first pivot level. But until these resistances are clearly overcome, the bullish reversal is not confirmed.
- The first level for a risky buy signal is the price breaking up the €56/58 ($62/65) pivot. It acted as a support at the end of August. Moreover, the 50-day moving average is now merging with the $65 resistance.
- The second less risky signal to buy Litecoin is the price breaking up the major pivot between €70 and €75 ($77 and $85). If the price goes back above this level, then a medium-term bullish reversal will be confirmed.
Top & flops of the week (top 50 marketcap)
1- VeChain (VET) : +31,50%
2- Tezos (XTZ) : +24,70%
3- MakerDAO (MKR) : +19,50%
1- Ripple (XRP) : -9%
2- NEM (XEM): -6,70%
3- Stellar (XLM) : -6,40%
Hot crypto news
- According to Ripple’s CEO, 99% of all cryptocurrencies should disappear
Only projects that provide real value and are able to scale will survive.
Many projects are copies of each other, many have not even produced anything.
This market therefore still needs to significantly clean up.
We can only agree with him.
- The first security token is deployed on the decentralised Uniswap platform
The RealT team’s token represents real estate properties.
The income associated with the token corresponds to the rent of the properties.
The project managers expect an annual ROI of 13%.
- China will invest more than $2 billion in the blockchain by 2023
The Political Bureau of the Chinese Communist Party said: the development of the blockchain sector must be accelerated.
Investments are expected to grow by 65% per year between 2019 and 2023 to reach a total investment of $2 billion.
It remains to be seen which blockchain and crypto applications will be developed.
Europe has been warned…
- The EU is considering a crypto euro
A draft document has been produced by the Finnish Presidency.
The draft document suggests that EU officials “could” explore the opportunities for a European cryptocurrency.
A final decision should therefore probably not be long to achieve….
- Private actors are pushing for the creation of a crypto euro
Several ecosystem players, including Ledger and Ark, are reportedly organizing themselves to propose a national cryptocurrency under the control of the French authorities.
A project in reaction to the news about Libra and the Chinese state crypto project.
They hope to obtain the support of the Public Investment Bank and the green light from the ACPR.
- Bakkt launches its custody offer for Bitcoin
Bakkt launches Bakkt Warehouse, a Bitcoin custody service for institutional investors.
Its solution is intended to be ultra-secure, including biometrically controlled safes.
The firm joins mastodons such as Fidelity or Coinbase in the custody offer.
The reputation of the ICE, Bakkt’s parent company, will undoubtedly help institutional adoption.
- 10% of MoneyGram transactions between the US and Mexico go through the Blockchain
The partnership between Ripple and Moneygram is paying off.
These transactions use On-Demand Liquidity technology on the RippleNet network.
MoneyGram wants to further develop the use of Ripple and its technologies.
Warning: this does not necessarily give any value to the XRP token.
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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