Home Analysis Alt Coins Crypto Tech Analysis: Bitcoin Gains on News Driven Momentum

Crypto Tech Analysis: Bitcoin Gains on News Driven Momentum

As news of Bitcoin ETF debuting in much anticipated Bakkt and SolidX platforms, market gains a fresh burst of positive price activity.

September 04, 2019 17:01
Bitcoin ETF
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Bitcoin has gained considerable momentum since trading session began for the weekend while altcoins continue to remain in the pit. Altcoins did see some level of gains but their contribution to overall market capitalization has decreased considerably. The positive market momentum was influenced by VanEck and SolidX decision to go ahead with launch of Bitcoin ETF service regardless of SEC approval. This helped BTC bulls gain the much needed bullish trigger and positive fundamental strength required to re-conquer 10000 handle. As Bitcoin made considerable headway compared to altcoins, Bitcoin now accounts for more than 70% of cryptocurrency market capitalization. As Bitcoin continues to rise and much awaited Bitcoin assets from Bakkt and VanEck’s comes into play even if only in limited versions, it has caught the interest of investors from across global financial industry causing the average daily trading volume to rise to $60 Billion USD as opposed to $40-45 Billion USD seen last week. The overall market cap of cryptocurrency market currently stands at US$ 272 Billion.

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Bitcoin: The progenitor of modern cryptocurrencies has spiked by nearly 4% since Monday as news of VanEck’s decision to start providing Bitcoin ETF’s on limited basis for institutional clients made the headlines. The market cap of Bitcoin is currently at US$189.38 Billion USD up by more than US$14 Billion since Monday. BTCUSD pair is currently trading at $10583 up by 1.75% on the day. While Bitcoin did see a positive burst of activity, the gains were limited as investors took to profit booking activity post the recent boom in Bitcoin’s price. However, Bitcoin has managed to gain stable foothold above mid-10K segment where it is likely to remains range bound awaiting yet another trigger and fundamental support to back up its move as it heads to breach 11K handle. In immediate future, expected support and resistance are at 10525, 10475/55, 10295 and 10654/58, 10735, 10877 respectively.

Ethereum: Ethereum, the most valued cryptocurrency in terms of market cap has posted considerable gains when compared to its state during weekend and early Monday. However, the digital currency has already lost a significant chunk of gains it had made during the course of its gains from late Monday and yesterday’s trading session. The current market cap of Ethereum is at US$19.19 Billion up by US$ 700 Million since Monday. The ETHUSD pair is currently trading at $178 handle up by 0.94% on the day as ETH bulls struggle hard to barely hold on to recent gains. When looking from technical picture, the bias in immediate future remains in favor of ETH bulls but that is only as long as the pair holds steady above $175 handle. The pair made an attempt to re-scale $185 handle during its short bullish burst which ended in failure. Further profit booking activity has shaved off considerable levels of gains leaving the pair to consolidate as traders await fresh directional cues. Expected support and resistance for the pair are at 177, 176, 175 and 180, 181, 183 handles respectively.

Ripple: Among the top 5 most valued cryptocurrencies, Ripple is the one with highest inclination towards sharp bearish dive. So far this year while Bitcoin and Ethereum have seen 176% & 35% increase in value including the loss it has sustained since declining from 2019 highs, Ripple has seen a total reversal. Ripple similar to BTC & ETH rose in early 2019 having achieved nearly 61% increase in value but it has since lost all the gains and is currently down by 17% compared to Ripples opening price for the year. Compared to BTC & ETH which have managed to conquer at least one level of key resistance to the upside Ripple still stays well in familiar price range of 0.25 handle. However XRPUSD is currently aiming to test 0.26 handle and is trading at 0.2593 down by 0.06% on the day while its market cap stands at US$11.19 Billion up by nearly US$ 200 Million since Monday. Moving forward, failure to breach and sustain hold above 0.26 handle will result in pair heading back to mid-0.25 handle. Expected support and resistance for the pair are at 0.2577, 0.2580, 0.2585 and 0.2620, 0.2648, 0.2666 handles respectively.

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