Remember that longer time frames are required to confirm proper reversals
After seemingly breaking the log chart resistance we referred to in yesterday’s report, at 20:15 GMT bitcoin instead started dropping from its daily high of £8.44k ($11.69k). It’s currently trading 3% to 4% lower than this high, but it seems that we are still at a bullish inflexion point.
Why did this happen? Mainly because traders were impatient — there was no confirmation of a higher time frame for that specific breakout. Nevertheless, enthusiasm kicked in — perhaps because bitcoin was above its 50 day moving average — and, naturally, bears took the opportunity to open some shorts on the decreasing volume.
Remember that Oscar-winning Hollywood block(chain)busters tend to have happy endings, however — the most important event of the past hour, at least for technical traders, has been a potential daily ‘kumo twist’. That means bitcoin is in a position to finally breakout above a key dynamic resistance level, Ichimoku’s cloud, which is a level that hasn’t been broken since January 16th!
As the rest of the market is waiting for bitcoin’s moves to play out, with the top 100 projects 2.5% down on average against the dollar and nearly unmoved against BTC, it’s time to talk about the elephant in the trading floor — Coinbase and its relationship with Ripple.
As mentioned yesterday, a rumour started circulating over the weekend that Coinbase’s COO was going to announce that Ripple’s XRP token will be listed on their exchange in an interview on CNBC later today, causing the token’s price to surge 18%.
Then, at 19:00 GMT, Coinbase retweeted their January 4th statement from a similar controversy they experienced , saying that they have made no decision to add additional assets — and XRP’s price immediately started dropping.
Do note that as Coinbase are getting sued for insider trading following the release of bitcoin cash on their platform last December, they are being extra careful with new listings and, as such, may be denying potential additions to avoid further legal entanglements. Watch out!
At 18:00 GMT today, if you are in London, check-out ALIS’ meet-up on Marlin’s Waterloo Hotel. ALIS is a Japanese social media platform.
At 22:00 GMT tonight, Tune in to CNBC — or Twitter if American TV is unavailable — to listen to Ripple’s CEO and Coinbase’s COO interview.
NEO responded to the controversy surrounding their consensus system that caused a 22% drop in its price — but is it a sufficient answer?
Check-out this handy visualization of 25 notable cryptoassets, distinguishing them by category, inception date, market cap and trading volume.