Ethereum Classic (ETC) Nosedives After Running Into Trend Line Resistance

Ethereum Classic (ETC) has nosedived after running into a strong trend line resistance. The price is now expected to fall down to the 50 day moving average if not lower. We might see some consolidation short term before a possible move to the upside. That being said, this whole setup is increasingly appearing to be more bearish than ever. If the price ends up falling below the 21 day exponential moving average, it will have a hard time going up. We believe that the price is likely to remain above the 50 day moving average for now and continue to trade sideways before its next move to the upside. This move will most likely be the final correction to the upside before we enter the fifth and final wave of the Elliot wave correction cycle.
So far, it appears that ETC/USD is holding up well against a sharp decline to lower levels. However, the price has entered overbought conditions short term and a drop to the bottom of the triangle would not be surprising. That being said, a move to the upside has to happen before the price can continue going down. In the past few weeks, Ethereum Classic (ETC) has had a lot of new events and conferences. The teams working on this blockchain are working harder than ever to capitalize on the full potential of the Ethereum Classic blockchain. We have seen new Dapps being built on the ETC blockchain and the community is growing at a very fast pace. Ethereum Classic (ETC) has had issues with funding in the rest past but what we want to see is how it fares during the bloodbath that is about to come.

Historically, Ethereum Classic (ETC) has a good track record of holding its ground better than most other cryptocurrencies during a market correction. We have already seen a horrible correction in the market that has led to most coins losing more than 95% of their value. However, when things are this bad it does not mean that they cannot get any worse. In fact, we have strong reasons to believe that they are going to get worse and when that happens we will see a lot of ICOs and useless projects get wiped out. Ethereum Classic (ETC) has a market cap of less than $500 million. The next correction would mean that things could get pretty bad and it would be a test for Ethereum Classic (ETC) to prove its mettle during tough times.
The daily chart for ETC/BTC shows that Ethereum Classic (ETC) faced strong rejection at the 50 day moving average despite several attempts at a breakout. Ultimately, it had to accept defeat and fell significantly below the 50 Day MA. The price could now settle atop the trend line resistance turned support of a previous falling wedge. This might be a good point of consolidation for ETC/BTC before its next move to the upside. This next move to the upside will most likely be insignificant and will be followed by a sharp decline to the previous support around December, 2018 low.
Source: Crypto Daily

Bitcoin (BTC) Loses Bullish Momentum, Price Eyes A Decline Towards 50 Day MA

Bitcoin (BTC) made its third attempt to breakout today and failed miserably as shown by the daily chart for BTC/USD. This rejection was a lot stronger than the one that preceded it. However, the way the price faced rejection when it tested the trend line resistance a few days back was enough to conclude that this rally did not have the momentum to continue before a retracement. We still believe that BTC/USD might make one last move to the upside before the imminent correction that would see the price fall to a new low in 2019. Bitmex CEO, Arthur Hayes recently said that Bitcoin (BTC) could drop to $2,000. While I do not believe the price might end up falling that low, I would not be surprised if it breaks below the 200 week moving average. If the price ends up closing below the 200 Week MA, anything is possible.
Considering that Bitcoin (BTC) still has one last move to make to the upside before entering another correction, we should expect that a retracement to the 21 day exponential moving average is imminent in the short term. This retracement is unlikely to be a straight drop and will more likely be a sideways consolidation which will ultimately result in the price touching the 21 Day EMA. This next move is likely to propel Bitcoin (BTC) towards $4,500 but there is a strong probability that the price may not stay there for long as the recent rally has made it clear that the bear trend is not over yet. The RSI and Stochastic RSI have both reached overbought conditions and signal a decline in price over the days and weeks ahead.

The bearish resolve has also been terribly weakened as BTCUSDShorts has fallen below a critical trend line support for the first time in more than 14 months. This is a big development that could explain why the bulls are feeling so confident all of a sudden. However, BTCUSDShorts is reluctant to continue trading down the descending channel and may retest the previous trend line support in the near future. That being said, it is clear the bears have had their run same as the bulls did just before the beginning of the bear market. The next drop from here may not be as straightforward and a lot of retail bears may not be able to capitalize on that.
The bearish resolve is significantly weakened at this point and the bulls are feeling confident short term, but the whales are running the show. They are going to allow the bulls to fall perfectly in the bull trap over the next few days and weeks after which they are going to pull the plugs. This is likely to catch both the bulls and the bears off-guard, which means a lot of blood will be spilled and the whales will come out as the only victors. However, those that are able to manage risk wisely and accumulate at lower levels without being greedy to margin trade for quick profits might find themselves in the same spot as the whales in the long term.
Source: Crypto Daily

Ripple (XRP) Breaks Trend Line Support, Very Likely To Form A Death Cross

Ripple (XRP) is about to do something that the rest of the market might take a while to do. That something is the formation of a devastating death cross that could see it decline to new lows in 2019. All hopes of a bullish reversal were shattered when Ripple (XRP) formed a gravestone doji a few days back which led to a sharp decline below the 50 day moving average as shown by the daily chart for XRP/BTC. Ripple (XRP) is at a higher risk of forming a death cross compared to most cryptocurrencies as the 200 day and 50 day moving averages have drawn too close. The price has already broken below a critical trend line support and is now likely to retrace to the 200 day moving average.
If Ripple (XRP) falls below the 200 day moving average against Bitcoin (BTC) which seems very likely, then we might see a continuation of the bear trend which could last the next few months. As we have mentioned in some of our previous analyses, we do not think the bottom is in despite what the mainstream media might have you believe. Just when things are about to take a turn for the worse, a wave of new bullish statements and announcements begins to surface and everybody is talking about what a wonderful invention cryptocurrencies are. Lest we forget, the exact same thing has happened many a time before. We have seen fund managers and tech figures come out in support of cryptocurrencies and the price tanked soon afterwards.

The possibility of the death cross on the daily chart for XRP/BTC is very hard to ignore. If Ripple (XRP) slides below the 200 day moving average, it will be very difficult for it to get back up and the price will see its final drop that would take us towards the bottom. Even if we were to do an Elliot wave analysis of the above chart, it would be clear to see that we are about to enter wave five but we have not entered it yet. That is supposed to be the final wave of correction which would see the price fall to its true bottom. The daily chart for XRP/USD on the other hand points to a very favorable development that could see Ripple (XRP) form a golden cross.
It would appear that the XRP/BTC and XRP/USD charts are giving us the opposite signals as what to expect for Ripple (XRP) in the near future. However, given that Bitcoin (BTC) has topped out short term and it is likely to go down in the days and week ahead, we are inclined to believe that the scenario outlined by XRP/BTC might be more plausible. Even if we were to believe that the golden cross is a plausible scenario at this stage, we would still have to consider why XRP/BTC formed a gravestone doji on the daily chart and why the price broke and closed below the 50 day moving average. All of these developments point to the fact that the bear trend is not over and Ripple (XRP) has yet to bottom.
Source: Crypto Daily

Ethereum (ETH) Could Still Determine The Direction Of Cryptocurrency Market

Ethereum (ETH) could still determine the direction of the cryptocurrency market and for good reason. This is because ETH/USD now has a lead on Bitcoin (BTC) and it can pretty much call the shots if it wants to. We saw this happen the past few days when both BTC/USD and ETH/USD went the opposite ways. Bitcoin (BTC) closed below the 50 day moving average whereas Ethereum (ETH) closed above it. Now, investors were left confused as to which one to trust. Historically, it has been Bitcoin (BTC) that has been dominant for the most part and the market sways towards its movements but this time Ethereum (ETH) took the lead and the market followed. We will get to why we think Ethereum (ETH) was successful in taking the lead, but first let us look at why we think Ethereum (ETH) can still determine the direction of this market.
If we look at the daily chart for ETH/USD, it looks a lot different than that of most cryptocurrencies because the price has yet to fall below the 61.8% Fib level. In fact, ETH/USD has remained strongly above this level and if it continues to rally from here, there is a strong probability that the rest of the market will follow. The reason we say that is because ETH/USD has not yet run into a strong resistance yet. Furthermore, if the price rallies from here, it will lead to the 21 day exponential moving average crossing above the 50 day moving average which would see the price rising at least towards $180. This would be interesting to see and it could happen but we have some strong reasons to believe that it might not.

Both the RSI and the Stochastic RSI have reached overbought levels and the price is extremely unlikely to rise as high as $180 from current levels. If it were to rise past the previous daily candle, it will have to lead to the 21 EMA crossing above the 50 MA which does not usually happen unless the market is ready for significant upside short term. However, there is an even stronger reason why we believe Ethereum (ETH) is unlikely to rally past current levels without coming down first. If we look at the daily chart for ETH/BTC, we can see that one strong move up from here would trigger the golden cross that we have long been waiting for.
Ethereum (ETH) has not yet tested its previous market structure and neither has Bitcoin (BTC). A golden cross is most often followed by significant rallies to the upside. The only way a golden cross would happen at current levels is if the price were ready to break out meaning we would have already bottomed. I do not believe we have bottomed and I do not think the price is ready for significant upside from current levels. The only reason I believe Ethereum (ETH) was able to take the lead was because of the possibility of this golden cross which would push Ethereum (ETH) into a bull trend against Bitcoin (BTC). If this golden cross does not come to fruition at current levels, we will see Ethereum (ETH) follow Bitcoin (BTC)’s movements once again and the price would retrace significantly over the days and weeks ahead.
Source: Crypto Daily

Ripple (XRP) Just Formed A Gravestone Doji Trading Against Bitcoin (BTC)

Just when we thought things could not get any worse with Ripple (XRP), we have seen XRP/BTC form a gravestone doji on the daily chart. The gravestone doji is a strong bearish reversal pattern that often leads to significant further downside. This doji was formed when the price ran into the 50 day moving average but faced a strong rejection and was forced to decline below the 21 day exponential moving average. So, what does all this mean for Ripple (XRP)? It means that the professional traders and retail traders are not on the same page here. The excitement that we have seen in the market over the past 48 hours will most likely be over when the professional traders are done selling their coins to unsuspecting retail traders who believe this is the trend reversal they have been waiting for.
News and fundamental analysis are very important when it comes to analyzing a financial asset. However, nothing beats the charts, which is why technical analysis always takes precedence. Most of the times, the charts tell us things that news or other fundamental analysis tools and resources cannot. If ignore the technical for a moment and look at the fundamental side of things for Ripple (XRP), we can see that JPM Coin has dealt a serious blow to its use case, not because Ripple (XRP)’s technology is inferior to that of JP Morgan but because it one bank can do this, what is to stop hundreds of others to do the same thing? Now, if all of these big banks get their own cryptocurrencies and distributed ledgers, what use do we have for Ripple (XRP)?

We mentioned in our last analysis on XRP/USD why we believe R3 did not care much about XRP in the beginning. It is now becoming increasingly clear why they did not because xVia or xRapid is not really a big deal. Moreover, if you are going to use third party help with those technologies, it only comes down to marketing and promotion which the Ripple Team is a genius at. In all fairness, what they have pulled off is no different than selling ice cream to an Eskimo. All of these big banks that have partnered up with Ripple (XRP) might have done exactly what Ripple (XRP) is helping them to do on their own, but they have lagged behind for far too long in a lot of ways so much that they do not believe they can pull it off on their own.  
Moreover, the fact that a lot of retail investors are counting on Ripple (XRP)’s partnerships with big banks without considering the fact that one of these days the banks might be able to do exactly what Ripple (XRP) is offering and they would say, “No thanks, we got this”. Things would not be so bad if these were the only risks. Ripple (XRP) is empowering the banks whereas this whole revolution is about getting rid of the banks and cutting out middlemen to make the end user in charge of their own finances, an ecosystem where everybody could be their own bank.
Source: Crypto Daily

EUR/USD Hints At Bitcoin (BTC)’s Next Move After An Aggressive Rally

Bitcoin (BTC) has rallied aggressively over the past 48 hours which many believe to be a sign of a trend reversal or bullish momentum returning back to the market. However, I do not agree with it for the most part as I believe this rally had more to do with the rise in EUR/USD than Bitcoin (BTC) itself. As we can see on the daily chart for EUR/USD, the Euro has been on a roll for the past few days. When EUR/USD rises, it means the US Dollar (USD) goes down. So, when the US Dollar (USD) goes down, we see a higher price of Bitcoin (BTC). Now one could say we have seen a sudden return of bullish momentum to the market or one could go look at the real factors responsible for the sudden surge in the price of Bitcoin (BTC).
It is a fact that BTC/USD has long been due for a correction to the upside as we discussed in many of our previous analyses. As it happened, that rally profited off the rise in EUR/USD but had nothing much to do with Bitcoin (BTC) itself. The S&P 500 has been rising for the past few days profiting off a weak dollar same as Bitcoin (BTC). So, what does it all mean for Bitcoin (BTC)? While we have been in a bear market for far too long and a trend reversal is expected in the near future, let us not forget that this trend reversal will take its time. It cannot be just one sudden break out to a new all-time high. That being said, those of you who are reluctant to sell their coins at this stage anticipating a break to the upside anyway, you are better off holding your cryptocurrencies if you accumulated at levels we previously discussed.

However, now is not the time to be buying Bitcoin (BTC). If we look at the daily chart for EUR/USD once more, we can see that the price struggled to get past the 61.8% Fib retracement level but it failed many a time. It succeeded around early 2019 but soon had to fall back below that level. This time though, the price has broken below the 38.2% Fib level and will now be testing it as a resistance. This could go on for a while which means it might take Bitcoin (BTC) weeks if not months to find its actual bottom.
The daily chart for BTC/USD also shows quite clearly what is going on. The price has run into the 61.8% Fib retracement level and is now expected to fall back as this level also coincides with a critical trend line resistance. While it is possible that the price might end up breaking to the upside, the probability of that happening is far too low and we might see a decline to the 38.2% Fib level at least if not a lot lower in the near future.
Source: Crypto Daily

Ripple (XRP) Runs Into Trend Line Resistance, Further Downside Expected

Things do not look good for Ripple (XRP) at all now that the price has run into a trend line resistance and faced strong rejection. The price was so close to capitalizing on the golden cross that is so close to being formed on the XRP/USD daily chart. However, the market does not seem to be ready for that just yet. In fact, most cryptocurrencies have already started to decline after running into trend line resistances. XRP/USD has not started yet because its growth this time has been somewhat slow compared to most other cryptocurrencies. Analysts believe this has to do with JPM Coin stealing Ripple’s thunder and there might be some truth to that, but Ripple (XRP) has already been on a roll for far too long and the price has now run into a global trend line resistance unlike most cryptocurrencies.
The trend line resistance that most cryptocurrencies have run into is the one that extends all the way back to November, 2018 but for XRP/USD this trend line resistance goes all the way back to the beginning of the downtrend. This is particularly alarming when you consider that if the price falls from current levels, it will have to enter a descending channel that will most likely be triggered by a flash crash. If the price declines straight below the pennant without holding the previous support, we could see a drop to $0.18 if not lower. Ripple (XRP) is one of the most well liked cryptocurrencies in the market that has a huge following. However, the recent developments involving the entry of JPM Coin in the crypto scene has placed big question marks over its use case.

Chart for XRP/BTC (1D)
A lot of investors and analysts seem to believe that there is plenty of space in this market for anyone and that if Ripple (XRP) was such a weak project why would JPM Coin feel the need to compete with it? That’s a good question but not good enough. Ripple (XRP) had an early mover’s advantage and it achieved a lot of success because of that but we have to understand that most of that was based on hype and even Ripple did not expect see itself making such a huge impact. This is why R3 and Ripple entered a legal battle when the price skyrocketed. If R3 believed that Ripple (XRP) is such an innovative technology why would they not protect their investments beforehand and why did they not care about it initially? That is also a very good question.
Do we believe Ripple (XRP) could rise to a new all-time high after finding a global bottom? Yes, we do believe that. However, we also believe that Ripple’s days of claiming to have an innovative solution to cross border payments are now long gone. Lest we forget, it is important to realize that Ripple Labs is just a business and marketing powerhouse. They are good at promoting themselves and getting things done. That does not mean that they have a strong development teams that is way ahead of everybody else in the market in this space such that other people might have a problem catching up with them. If anything, R3 is that technological powerhouse and if anybody wants to compete with Ripple, they could use R3’s help if they really need it.
Source: Crypto Daily

Ethereum Classic (ETC) Expected To Fall Back Below $4 As Price Meets Resistance

Ethereum Classic (ETC) has been on a roll in the past 48 hours. The price has rallied aggressively towards its trend line resistance and is now expected to put up a fight to either break above or fall back within the triangle. The consolidation that we saw last time is unlikely to happen this time as a rejection at trend line resistance most often leads to a strong decline in the price of an asset. It may stall a decline till the end of the week but it is becoming increasingly clear that ETC/USD lacks the bullish momentum to continue higher from current levels. RSI for the 1H chart for ETC/USD shows that the price is overbought short term. The Stochastic RSI indicates that the overbought condition will likely be followed by a correction to the downside to bring the price back to its mean.
We have seen a rising interest in Ethereum Classic (ETC) over the past few weeks. More and more exchanges are listing ETC pairs and developers are building new Dapps on the ETC blockchain. It is clear that Ethereum Classic (ETC), a cryptocurrency that has been around for long but has lacked the spotlight that it deserved is finally going to get it. Just looking at the technicals is enough to deduce that this cryptocurrency is poised for major rallies against Bitcoin (BTC) and Ethereum (ETH) both during the upcoming bull run. Now, there might be some short term setbacks but the long term outlook is quite clear and Ethereum Classic (ETC) will probably be one of the best performing coins during the next bullish cycle.

Ethereum Classic (ETC)’s current situation reminds us of R3 and Ripple Labs. The former had the technology and the latter had the magic to turn it into a successful cryptocurrency. Same is the case with Ethereum Classic (ETC). ETC Dev had the technology which helped Ethereum Classic (ETC) become the decentralized and immutable blockchain that it claims to be today. It badly needed ETC Labs all this time to turn it into a successful cryptocurrency and it seems that now it has finally found it. The technology that was perfected by ETC Dev will now be used by ETC Labs to make Ethereum Classic (ETC) an attractive and more functional cryptocurrency. If we look at the daily chart for ETC/ETH, we can see that Ethereum Classic (ETC) is slowly forming a bottom against Ethereum (ETH) to enter a long term uptrend against Ethereum (ETH).
Ethereum Classic (ETC) has been in a downtrend against Ethereum (ETH) all this time. Now, it seems that the tables are about to turn and Ethereum Classic (ETC) is going to outpace Ethereum (ETH) in terms to growth during the next bullish cycle. The best part is that both the technical and fundamental indicators support this theory. From a technical analysis standpoint, ETC/ETH has already bottomed out and is now entering an uptrend. From a fundamental analysis standpoint, Ethereum Classic (ETC) is getting a ton of new Dapps built on its blockchain and is almost 30 times smaller than Ethereum (ETH) in terms of market cap which means it is more likely to have a higher percentage growth.
Source: Crypto Daily

Bitcoin (BTC) Finally Climbs Past 50 Day MA To Resume Rally Towards $4,500

Bitcoin (BTC) has finally climbed past the 50 day moving average. Yesterday when Ethereum (ETH) was trading well above the 50 day moving average but BTC/USD faced a strong rejection at the 50 day MA, investors were worried as to what is Bitcoin (BTC) really up to. However, as many expected Ethereum (ETH) showed Bitcoin (BTC) the way and the price closed below the 50 day moving average after all. The price has now started a new day in the green and is trading around $3,800 eyeing a rally towards $4,500 which coincides with the 38.2% Fibonacci retracement level. The price has now broken out of two bullish pennants at the same time and is expected to continue to rise in the days ahead.
RSI for BTC/USD has now once again entered overbought territory which means there is a strong probability that the price might once again enter sideways movement for a while before continuing upwards. That being said, a move to the upside is now more probable than before and the price will be expected to test the previous market structure in the weeks ahead. I believe that without testing the previous market structure, BTC/USD cannot make a decisive move. This is because a retest of the previous market structure around $6,000 will have some important consequences that would pave the way for a decisive move either to the upside or the downside. If BTC/USD tests the previous market structure and faces a strong rejection, it will convince the bulls that the bottom is not in yet. On the other hand, if the price breaks past the previous market structure, it will convince the bears that the bottom is in.

Without testing the previous market structure, neither the bulls nor the bears can know for sure what is going on and the price will not be able to make a decisive move to either side. If the price continues to fall from current levels or even from $4,500 without testing the previous market structure, it will not be able to fall below its December, 2018 low. Then it may rise from there and will be expected to do the very same thing: test the previous market structure. Some analysts have pointed to a possibility of the price breaking straight towards $20,000 and then falling below $3,000. This goes on to show how most people in this market lack basic understanding of the factors that influence sentiment shifts and pave the way for trend reversals.
Now that BTC/USD is back above the 50 day moving average, there is one strong bullish possibility that cannot be ignored and that is the golden cross resulting from the 50 day MA (green) crossing above the 200 Day MA (red). A lot of people think if that were to happen, we would see the price rocket straight to the moon, but I disagree. There is no doubt that the golden cross is a very bullish event that would see the price rally towards new highs in the long term. However, even if we see a golden cross, I still believe that if the price faces a rejection at the previous market structure around $6,000, it will still fall back to the previous low if not lower regardless of the golden cross.
Source: Crypto Daily

Ripple (XRP) Breaks Above 21 Day EMA But Demonstrates A Loss Of Momentum

Ripple (XRP) has finally broken above its 21 day exponential moving average but the momentum that we see is a lot different than what we used to see in XRP/USD. During every market recovery, Ripple (XRP) used to be one of the high achieving coins. That does not seem to be the case anymore as we have seen a clear loss in bullish momentum following the JPM coin announcement. This is very alarming to see when a lot of big banks across the globe are beginning to use Ripple’s xRapid service. The effect of those positive developments seems to have been overshadowed by the overhyped impact of JPM Coin. This is a short term setback for Ripple (XRP) investors but things will take a turn for the best once sanity returns back to the cryptocurrency market.
When markets are overly bullish, a lot of investors have unrealistic expectations that call for higher valuation. We saw this during the previous bull market when people were calling for a price of $15 or higher. The same thing is happening here with a lot of people labeling XRP as a scam and a sh*tcoin that has finally been put out of business with the JP Morgan’s entry. As ironic as it is to see some cryptocurrency enthusiasts to side with JPM Coin to see XRP fail, it should be borne in mind that people behave unreasonably during unreasonable times. The market is currently overly bearish and so the sentiment is overly pessimistic. A lot of people are pointing out flaws where they do not exist. This is why so many people miss bull runs and buy late into the market.

When everything is going well, that is not the time to buy; in fact it is the time to look for selling opportunities. The market is bleeding at the moment which means now is the time to start accumulating. Sure, the price could move down some more but if we take risk/reward into account, this is one of the best entry points. The daily chart for XRP/BTC shows that Ripple (XRP) has reached the bottom of a bullish pennant after facing strong rejection at the 50 day moving average. There is still a good change that the price might continue to fall towards the 200 day moving average. However, if that were to happen, Ripple (XRP) would be at risk of significant further sell off.
Both the RSI and MACD profiles for XRP/BTC show that the price is ready for a big move to the upside. However, as we have seen with Bitcoin (BTC), the price could move sideways for a while before breaking decisively to the upside or the downside. XRP/USD seems to be already in the clear but XRP/BTC is in a rock and a hard place kind of situation. As bullish as the bull pennant is, if the price were to slide down to the 200 day moving average, that would seriously diminish the chances of any bullish breakout for Ripple (XRP). Ripple (XRP) has been a very lucrative investment in the past but after recent developments investors should exercise caution not just for fundamental reasons but for technical as well.
Source: Crypto Daily

Bitcoin (BTC) Breakout Attempt Fails Again But Something Big Is In The Offing

The last few weeks have been incredibly confusing for Bitcoin (BTC) traders and investors. The price has failed to make a decisive move to either side. The 4H chart for BTC/USD shows that the bull flag that the price has been trading in since the beginning of the month seems to be going nowhere. The price attempted to break above it in the past 24 hours but it failed miserably and was dragged back inside the flag. After the bullish moving average cross over on the 4H chart, it was expected that Bitcoin (BTC) would break decisively to the upside. However, some interest groups appear to be deliberately stalling a break to the upside for reasons not known at this point.
Recently, a Chinese Mining Expert predicted the predicted that Bitcoin (BTC) will rise 20,000% during the next bull run. Given the state of the global economy, we have strong reasons to believe that this might be possible. A lot of people consider the JPM coin announcement a negative development but in my opinion this is a solid victory for Bitcoin (BTC) and its believers who should feel vindicated that those who have been calling it a scam and a fraud are now trying to compete with it on the same battlefield. Bitcoin (BTC) was around when cryptocurrency was not even a word. Since then, it has reached unprecedented levels of adoption that no JPM coin or any other coin for that matter can compete with no matter what they do. If anything, this recent JPM coin announcement shows us how desperate institutions like JP Morgan currently are and how threatened they really feel by Bitcoin (BTC) and other cryptocurrencies.

Now, we have gotten used to four years cycles for Bitcoin (BTC) and we have seen that every subsequent cycle leads to lesser percentage gains compared to the previous cycle. However, unlike the four years cycle, this pattern does not rest on anything concrete and can be broken. We now know that we have the four years cycle because of halvening. Every four years, Bitcoin (BTC) undergoes a halvening event. As every halvening event cuts mining rewards in half, simple supply and demand tells us that the price must rise and therefore it does every single time. Now, supply and demand tells us that the price should rise after halvening but it does not tell us how much it should rise.
The daily chart for BTCUSDShorts shows us that the number of shorts has been in a descending channel since the beginning of the year and is now about to break a historical trend line support. Soon as this support is broken, all hell is going to break loose. The bears are going to get out of their positions or get liquidated both of which will lead to major spikes in the price of Bitcoin (BTC) and the bulls will take it from there. We have seen a lot of industry leaders make some very bold predictions. Some of them have been proven wrong in the past but there are other that have been proven right. Several such predictions were made by Tim Draper which turned out to be true. He now sees Bitcoin (BTC) at $250,000 by 2022.
Source: Crypto Daily

Bitcoin (BTC) Is About To Make Its Biggest Move In 14 Months

Bitcoin (BTC) is about to make its biggest move in the last 14 months and investors are worried because it will have important implications. There is something interesting going on with Bitcoin Shorts that the mainstream media is deliberately ignoring. Everybody is talking about how the new JP Morgan coin is the end of Bitcoin (BTC) and that it is over for cryptocurrencies now that we have banks issuing their own. Amidst all these useless debates, important developments that would determine the future outlook of BTC/USD for a long time are being ignored. The daily chart for BTCUSDShorts shows that the number of shorts has now fallen back to its trend line support which had not been tested since February, 2018.
The daily chart also shows that BTCUSDShorts is trading within a descending channel and a rising wedge at the same time, both of which are extremely bearish setups. So, the most likely scenario at this point is that BTCUSDShorts will have to break below the rising wedge and continue trading within the descending channel. Considering that this is something that has not happened in more than 14 months, we believe that a break below the trend line support in BTCUSDShorts will shatter the bearish resolve and a lot of bears would close their short positions which would see Bitcoin (BTC) rising towards its previous market structure around $6,000. It is too early to tell if the price will continue to rise past the previous market structure, but we believe panic closing of these shorts or liquidations would be the catalyst that would see BTC/USD rise towards $6,000.

Investors that expect a fall to $3,000 at this point ought to realize that everything is in favor of a massive rally to the upside at this stage. The 1H chart for BTC/USD shows the price trading within a bull flag that could break to the upside anytime now. There is a risk that the crossover of the 50 and 200 moving averages on the 1H chart might lead to short term downside over the weekend. However, this setup still remains very bullish and it should be accepted as such by accumulating at these levels instead of selling. The sentiment right now is extremely bearish and there is not much that could happen at this time that could make things any worse.
In the past few weeks, many professional traders and analysts have mentioned that for the price to bottom, we have to see the mainstream media say “Bitcoin is dead” more often. I think we have finally seen that happen after the JPM coin announcement. I have to say I was shocked to see Barron’s publishing an article titled, “JP Morgan Just Killed the Bitcoin Dream” given its credibility and reputation. However, there is a method to this madness. Most of these media outlets answer to larger interest groups that use them to achieve their objectives. This is why it is so important where you get your information from. As long as there are media outlets like Crypto Daily around, investors that are willing to go the extra mile to find the truth will always be able to do so. 
Source: Crypto Daily

Ethereum (ETH) Likely To Break To The Upside Following Bullish MA Crossover

Ethereum (ETH) is still trading within a large bull flag that is expected to break strongly to the upside now that the moving average cross over on the 4H chart for ETH/BTC has formed a golden cross. This is often a very bullish development that results in the price rising sharply to the upside. We have seen this happen before in the case of Ethereum (ETH) when the price had bottomed out against Bitcoin (BTC) in December, 2018. Soon afterwards, the price rose above the 50 MA which was later followed by a golden cross that resulted in the price rising to its January, 2019 high. This cross over is expected to result in a similar break to the upside which will lead to Ethereum (ETH) finally forming higher highs and higher lows.
The price is still way below its previous all-time high and there is plenty of room for growth to the upside. However, market conditions still remain uncertain and Ethereum (ETH) is unlikely to make a move on its own without the blessing of Bitcoin (BTC). That being said, soon as the market recovers, we will be ready for the next altcoin season which will see Ethereum (ETH) leading altcoins towards aggressive gains against Bitcoin (BTC) just like we have seen in the past. We have already seen that Ethereum (ETH) has regained its second place (in terms of market cap) just before the beginning of the next altcoin rally. The number of new ICOs is still on the rise and a lot of startups are waiting to hold their ICOs soon as the market recovers.

As new projects hold their ICOs in the months ahead, we will see demand for Ethereum (ETH) rise again as most investors in these ICOs will have to first buy Ethereum (ETH) in order to invest in those ICOs. This had a strong impact on the price of ETH/USD during the previous bull market and we believe it will have the same effect now. Ethereum (ETH) might not be able to rise as much in terms of percent gains but a five digit price is still quite reasonable. Investors should see 2019 as the best time to invest in Ethereum (ETH) but it does not mean they should expect to see significant returns on their investments this year. In fact, the four year cycles that we have seen before will likely follow again unless something extraordinary happens in the stock market.
The reason we believe the four year cycles will keep on following as before is because the strongest force in this market that influences price the most is supply and demand. After every halvening, we see an aggressive running up that leads to most cryptocurrencies reaching their new all-time highs. We expect the same to happen this time. There are plenty of confusions regarding the Fed’s next move and the state of the stock market. Those factors affect the price of cryptocurrencies in a big way because this is still a very risky market and when things go bad, investors are eager to get rid of their risky investments first. However, we believe that this confusion will continue throughout 2019 and the stock market will continue to look for help and the Fed will ultimately have no choice but to provide it.
Source: Crypto Daily

Why Ripple (XRP) Did Not Fall After JPM Coin Announcement

A lot of cryptocurrency enthusiasts expected Ripple (XRP) to decline significantly after JP Morgan CEO, Jamie Dimon announced their new JPM coin. As this coin will be used to settle institutional transactions same as XRP, many believed that this would deal a severe blow to the price of XRP/USD. A lot of Bitcoin (BTC) maximalists started attacking Ripple (XRP) on social media forums all of a sudden and rumors that some developers have left Ripple began to surface. This may have happened to Ripple (XRP) for the first time but this kind of fear mongering is not new. In fact, we saw it when ETC Dev announced shutdown and then Ethereum Classic (ETC) had the 51% attack. After that when Ethereum (ETH) delayed its Constantinople hard fork due to some security concerns, a lot of people started saying it was game over for Ethereum (ETH).
The takeaway from this whole discourse is that such developments towards the end of the bear market are just orchestrated ploys to suck more blood out of the market. If you are expecting something big to happen short term after the JPM announcement, please know that we have seen such developments in the past with no significant impact on the price whatsoever. The Van Eck ETF Rejection was a far bigger event than some JPM coin. Yet it failed to pull the price of Bitcoin (BTC) like the market makers wanted to. The thing is, the big boys know exactly what is up. So, if one of them dumps to create fear in the market, one of their fellows is going to scoop it up. The end result of this is quite obvious. So, what they are looking for here is for the retail traders to panic not the professionals.

JP Morgan is no doubt a large financial institution but in terms of technology, Ripple (XRP) is still far ahead. Besides, Ripple (XRP) is not a bank; it is a company that provides services to banks. So, a lot of banks would be open to using XRP instead of their nostro/vostro accounts. As for JP Morgan, its coin will only be used for inter-bank transfers. Another important thing to point out is that a lot of people do not trust the banks anyway. Moreover, they might find it difficult to make big changes on a large scale compared to Ripple (XRP).
If you look at the charts for XRP/USD, it is obvious to see that fear is being infused into the market at a point when Ripple (XRP) is prepared for a breakout. If everybody is so concerned all of a sudden why are they not selling? That is because the people you see bashing XRP on Twitter or Reddit had no XRP in the first place. If they had any, they would have sold them now and the price would have tanked. All such statements like, “This is the end of XRP” or “JPM is the new XRP killer” should be given no more thought than statements like, “XRP is going to $500 per coin”. 
Source: Crypto Daily

Rising SPX/GDP Ratio Points To Game Changing Outlook For Bitcoin (BTC)

Companies are seldom worth their true value when it comes to market capitalization. Some companies are overvalued and some are undervalued but very few are rightly valued. So when it comes to valuation, people have different approaches. Some like Warren Buffet stress on the debt to equity ratio which I also strongly agree with. The debt to equity ratio of a company is one of the best ways to find a company’s true value. However, we would like to move this discussion towards Bitcoin (BTC) and analyze it from a macroeconomic perspective. To do that, we will first look at the SPX/GDP ratio on the monthly chart for S&P 500. The price of the S&P 500 Index is shown by the candles whereas the GDP is shown by the purple area line.
During the industrial revolution, the economy of the United States was booming in the real sense. The SPX/GDP ratio was close to normal and we had real growth. Most of this lasted throughout the 90s just before the dot com boom. During the dot com boom, the S&P 500 rose significantly higher compared to GDP of the United States. However, then the dot com bubble pooped and the ratio started to come back to the mean once again. It did not correct fully and started to take off again, but soon afterwards the global financial crisis kicked in and it finally started to decline again. This time the SPX/GDP ratio fully reverted to its mean. Now, this was the prime time to go long on stocks. So, a lot of investors became greedy and money returned to the market.
 The Fed eased things with aggressive quantitative easing after the crisis which made borrowing cheaper and everybody started pumping money into the stock market. The end result of this was a bull run that has yet to stop. If we look at the current SPX/GDP ratio it is mind blowing. At one time during 2013, the market dodged a bullet which would have in fact ended the mania back then and the US economy would have been in a far better shape today, but greed took over and the price kept surging. As long as the S&P 500 remains above the 50 Month MA, things will remain normal. We will see this continue for a while but investors will realize quite soon that the stock market is going nowhere while their colleagues are hitting it big in the cryptocurrency market. 

These people are not going to put their money in treasury bonds or in the bank after the stock market fails them. They are going to look for opportunities and they are going to find them in the cryptocurrency market. The Fed recently changed its stance and there are now concerns that further rate hikes might be on the way. This does not look good for the stock market near term and if it does not look good for the stock market near term it does not look good for BTC/USD near term. However, it is important to note that this is the case with most financial assets. There is no direct or inverse relationship at all times, it does not work like that. For instance, during the previous financial crisis, we saw Gold fall and then rise when it should have held its ground or shot up from the very beginning without going down.
However, we have to understand that simple direct or inverse relationships might have theoretical meaning but they do not work like that in practice. If the stock market crashes, investors are going to sell whatever they have to cover their losses. That means selling assets that may be profitable. Now, they are not going to sell all of their assets that would be a good hedge against the stock market but they will sell some in the beginning. This is why in the case of a financial crisis, BTC/USD is likely to crash first, but what happens shortly afterwards? We believe that during the next financial crisis, most institutional investors who want to move out of their stock positions will choose Bitcoin (BTC) as one of their safest bets.  
Source: Crypto Daily