The cryptocurrency markets continue to struggle, and a significant upside rally in the sector remains elusive. The currencies have, however, shown some moderate upside momentum in recent action. The question is: Will it continue?
Bitcoin and other cryptos could be considered a safe haven asset by some investors, and with risk appetite still at elevated levels such asset classes have not seen much interest in recent months.
“This latest BTC price surge comes firmly on the heels of two significant positive pieces of good news for crypto investors. First, BlackRock Inc., the world’s largest ETF provider announced that it was interested in blockchain investment. Billionaire, Steven Cohen recently invested in the Ariana Simpson-led Autonomous Partners, a cryptocurrency hedge fund startup.
Since the start of crypto-winter in January 2018, many analysts have declared that the entry of institutional players is the next big step for crypto. Many big-money investors have so far shied away from the market due to regulatory uncertainty. However, regulations seem to be taking some shape as institutions like the SEC have deemed BTC and ETH not to be securities.
In Asia, the market is becoming more structured with nations like Japan, South Korea, and Thailand taking significant steps to regularize the industry. With more clear and straightforward regulations, institutional money is bound to flow into the industry.”
Bitcoin: Bitcoin finally found a bottom-at least for now-for under $6000. The market has since seen some bargain hunters step in, and prices have risen by several hundred dollars to trade near the 6.6k level. On the larger time frames, the market remains in a downtrend. That being said, larger capital inflows could potentially turn the tide for the currency, but it will need to see some sustained follow-through to garner more excitement.
Bitcoin Cash: This crypto has been primarily range-bound this week, and seems comfortable around the $700 level. Like other currencies, it remains in a trend lower but has shown some signs of finding a bottom. The currency has been lacking any fresh, bullish catalyst to take prices higher, and without such a catalyst it may simply move along with the rest of the sector.
Ethereum: This crypto is also showing a bit of upside momentum in recent action, but will need to overcome some resistance in the $480 and $540 areas before possibly seeing more sustainable upside. Like other currencies, it has been mostly drifting in recent weeks as the notion of additional regulations and other factors have taken a toll.
Ethereum Classic: This crypto has also possibly found a bottom-at least in the near-term-as prices dipped down to around $16 before finding some buyers. The larger time frames are starting to look a bit more constructive, however, and the bulls will want to see some additional buying this week in order to keep the rally going.
Litecoin: This crypto has not had much to get excited about in recent weeks, and the market has seemingly been intent on probing new lows. The currency did find a recent low around the $76 level, however, before seeing a decent bounce higher. On the bigger charts, the currency appears to be trying to halt the trend lower in price, but it will need to see some serious upside before investors get very excited again.
Ripple: This crypto traded in a very tight range for most of the week, and also looks to be looking for a bottom in price. The currency has hung around the $.48 area for the better part of the last few months, and has not shown any impressive rallies during that time. The bigger charts still look bearish for the currency, and it is very questionable whether a long-term bottom has been seen or if a lower price point must first be reached.
The next trading week could be critical if recent bullish momentum is to continue. Many buyers are likely waiting on the sidelines at this point to see if lower prices may be in store or if the currencies are finally ready to start moving higher again. Any further bullish price action could potentially draw some of that capital into the market, and with stronger inflows cryptos may see a more sustainable move to the upside.