The total market capitalization of all cryptocurrencies has fallen from over $ 380 billion on June 26 to under $ 300 billion. This shows that the strong recovery from the lows take a breather. While the unveiling of Facebook’s Libra project boosted crypto currencies significantly, recent opposition from various quarters led to gains being posted.
While a number of Altcoins have reached a difficult level in recent weeks and lost most of their profits, Bitcoin still looks strong. Therefore, we see this case as a buying opportunity. However, we do not recommend buying when the trend abates. Traders can wait until the price no longer falls and set a short-term low before taking long positions.
The rally after the current correction phase will clearly separate the winners from the losers. We recommend that traders buy cryptocurrencies that are above their strong support and recover quickly from the case. Let’s see if we can find trading opportunities among the top 3 performers in the last seven days.
BTC / USD
Last week some big names spoke against Bitcoin (BTC). The most important statement came from US President Donald Trump, who said he was not a fan of Bitcoin and other cryptocurrencies because he believed that it was not money, that it was very volatile and its value was “air-based”. , The crypto community, on the other hand, took these statements very positively as it gave the asset class widespread publicity and showed that it has become so important that the US president would comment on it.
Fed Chairman Jerome Powell said that no one would use Bitcoin for payments and that it was merely a “speculative value store like gold”. The European Central Bank also opposed this, saying Bitcoin was not a currency, but a volatile asset. There are no plans to add Bitcoin to its reserves.
On the other hand, Chamath Palihapitiya, CEO of VC firm Social Capital, said Bitcoin is the best hedge against the traditional financial system. Likewise, the Grayscale Bitcoin Trust recorded a significant inflow of funds. This shows that despite the disapproval of the central banks and the world leaders against Bitcoin, cryptocurrencies are finding a place in the portfolio of major investors. Should traders buy now or wait for lower levels? Let’s find out.
The rebound of the BTC / USD pair reached a hurdle of $ 13,156.96 and fell from there. It now corrects to correct first support of $ 9,781.81, which is the 38.2% Fibonacci retracement of the recent rally. If this support continues, it indicates that the cops are unwilling to wait for a lower level buy, which is a positive sign. The next rally is likely to test $ 13,973.50 again.
On the other hand, if bears lower the price below $ 9,871.81, the next support is 50% of the retracement level at $ 8,604.80. Even the 20-week EMA is very close, so we expect a recovery from one of the supports.
Since the RSI is still in overbought territory, the pair may not hurry. It could consolidate for a few weeks before the recovery resumes. We will wait for the price to complete the correction and to see signs of a turnaround before proposing a trade.
LINK / USD
Chain Link (Link) announced a collaboration with IoTeX in the field of Oracle research and development to provide real data to blockchain applications. In addition, she has made connections with Ampleforth and Neblio in the last seven days.
The sharp rally of the LINK / USD pair could not hold above $ 4. Over the last two weeks, the pair has corrected to $ 2.60, which is just above the 50% Fibonacci retracement level of $ 2.4465. Since the RSI is still heavily overbought, we expect the price to go into a range for a few weeks.
Contrary to our assumption, if the bear falls below $ 2.4665, the digital currency may fall to $ 1.9671, which is the rally’s 61.80% Fibonacci retracement. A breakdown of this support will be a negative move. We advise traders to wait for a clear spread before taking long positions.
OKB / USD
OKB is the native token of OKEx, a world leading crypto exchange. The token offers its users the ability to set up OKEx partner exchanges on the OK Jumpstart platform, settle trading fees, and subscribe to new token sales.
The OKB total supply amounts to 1 billion, of which only 300 million are in circulation and the remainder is closed until 2022. The long-term traders of the token will benefit from the OKB Buy-Back & Burn program, which runs every 3 months. The token is currently working with the ERC-20 protocol, but will soon be migrated to OKChain’s main network, which is in the final stages of testing.
OKB is listed on Bitfinex and seeks to work with other exchanges to further expand the ecosystem. At the moment, the token is at 1,870 places after CoinMarketCap with a 24-hour volume of $ 61.7 million. Is this a good opportunity to buy OKB before prices skyrocket? Let’s take a look at the technical picture.
The OKB / USD reached a high of $ 6.68 on May 18, 2018, and lost considerable ground during the bear market, plummeting to $ 0.5718 on January 13, 2019. On April 3, it rebounded to $ 2.5566. This is an increase of 347% within three months.
Thereafter, the pullback found support in the 61.8% Fibonacci retracement of the uptrend. It consolidated between $ 1.30 and $ 1,829 for several days before breaking out of spread. The two moving averages gradually rise, suggesting that bulls have the upper hand.
However, the pair is facing strong resistance just over $ 2. If the price of the 20-day SMA collapses, it can fall on the 50-day SMA. This could result in consolidation between US $ 1.54 and US $ 2.1550 for a few days. A breakout in this range can push the price down to $ 2.5566, which is a stiff resistance. However, when the bulls scale $ 2.5566, the pair gains momentum to $ 3.45 and above at $ 4.If bears drop the price, bears can sink to $ 1.2616, which is strong support. If this support collapses, it will be an advantage for the bears.