If we fail to turn bullish, more red candles are coming.
After the massive buying volume this Tuesday, compared by many to the pre-cursor of the bull run that started on September 15th, right after the China ban FUD, Wednesday’s daily bitcoin candle failed to ‘close’ on the green side.
This means that by the end of the day in the UK, the price of a bitcoin closed on a lower price than the one it opened at that morning. Within the current bearish trend this doesn’t confirm a reversal and shows that the market has not yet decided whether to support bulls or bears.
As we approach the weekend — traditionally a period with less trading volume and therefore more prone to wild movements, with a tendency to dip — we continue to recommend closely watching bitcoin’s price to gauge the direction of the crypto markets.
While today’s early hours have been positive, with bitcoin rising 8% and leaving the past day’s bear channel, it’s impossible to predict the short-term direction. In any case, you can look at some indicators for now, such as how the market reacts near the £6k ($8.4k) level!
Do remember that all past bitcoin crashes were followed by fake breakouts. Such ‘dead cat bounces’ could have already happened after the January 17th dip to £6.5k ($9k), which was followed by a rally to £9.3k ($13k) just three days later.
Most projects are in the green, which brings new meanings for the flippening!
After a week of indecision in which some alts performed decently — such as NEO and Stellar — but the rest of the market traded sideways, we noted that ‘the dip wasn’t over’ — and then, on Sunday 28th January, bitcoin started its dreadful free fall!
We don’t like to see the market crashing like the bears do! We hate to see our readers’ profits falling and, while naturally not providing investment advice, it’s always good to share some new risk management tips once in a while.
It’s important to note that from Tuesday to Wednesday the top 100 cryptoassets by market cap jumped up by an average of 30% and, over the past day, they are up by a further 10% — with ether and NEO being the ones closest to their previous all-time highs.
Which brings us to the topic of the possible’ flippenings’ taking place in 2018. Usually this was a term used to talk about the moment Ethereum would surpass bitcoin’s market cap — but the narrative is starting to change into other flipping scenarios!
The ‘other flippening’ was only about Bitcoin Cash, which we covered in our annual report. Now, however, we have the potential flow from commodities and equities to cryptoassets and the fact that regulators’ discussions are driving prices up instead of down — both factors that widen the flippening scope further.
The more dangerous result from this is the possible “decoupling of BTC as the primary trading pair”. We’ll keep a watchful eye open as more exchanges start offering USD pairs for altcoins, meaning they might become less vulnerable to bitcoin’s volatility!
Filter the noise and stay ahead of the pack
Binance, now the most popular altcoin exchange, is down for an unexpected maintenance. People panicked but it seems everything is safe!
Trading View is a website where enthusiasts share their market ideas. One trader is expecting bitcoin to drop to £2.2 ($3k) and then jump to £90k ($125k)!
Gibraltar is trying to become a go-to destination for all things crypto! Today it’s home to the Blockchain & Bitcoin Conference Gibraltar 2018!
An insight a day could give you more profits to play
Yahoo organized the ‘All Markets Summit: Crypto’. Grayscale, a digital currency investment trust, announced a new ‘Digital Large Cap Fund’ while MANA, the token behind Decentraland’s popular ICO, also received a lot of positive attention!
Crypto market manipulation is reaching new heights! Hackers gained access to an official People’s Bank of China’s account and emailed US media organisations, claiming that there was to be a further crackdown on “bitcoin trading in both mainland China and Hong Kong”!